Indonesia’s central bank, Bank Indonesia (BI), announced that transactions using local currencies rather than the US dollar between Indonesia, China and Japan have surged significantly. According to Governor Perry Warjiyo, arrangements under the Local Currency Transaction (LCT) programme accounted for about USD 7 billion with China and USD 5 billion with Japan, totalling approximately USD 12 billion or around IDR 200.37 trillion.
BI emphasises that this shift is part of a broader strategy to strengthen international banking cooperation, enhance payment system connectivity and reduce reliance on the US dollar. The government, via the Coordinating Minister for Economic Affairs Airlangga Hartarto, has committed to bolstering the economy’s foundations by expanding LCT arrangements not only with ASEAN but also with Japan, China, South Korea and the UAE. Integrating digital payment systems—such as QRIS—supports this transition by enabling cross-border payments without using dollars or credit cards.
