Bank Indonesia (BI) has disclosed significant interest from multiple\nnations in conducting bilateral transactions using local currencies,\nbuilding on its existing framework with China. The central bank is now\ntargeting several other countries for local currency settlement (LCT)\nagreements.<\/p>\n
Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated\nthat several countries have begun to show interest in LCT following BI\u2019s\ncooperation with the People\u2019s Bank of China (PBoC) and the Hong Kong\nMonetary Authority (HKMA).<\/p>\n
\u201cThe reaction to LCT has been extraordinary. After we signed the MoU\nwith the PBoC and HKMA, it truly surprised several countries in the\nregion. They realised this signifies a major agreement, which ultimately\nencouraged other nations that are also our trading partners,\u201d Destry\nsaid during CNBC Indonesia\u2019s Economic Update 2026, quoted on Wednesday\n(24\/6\/2026).<\/p>\n
Destry noted that India has expressed interest in LCT and is\ncurrently in the discussion phase ahead of signing a cooperation\nagreement. \u201cIndia, for instance, is moving quickly to establish an LCT\nwith us. We are actually in the process, but drafting an MoU cannot\nhappen instantly because we must consider the implementation, and each\ncountry certainly has its own regulations,\u201d she continued.<\/p>\n
Besides China and India, other countries such as South Korea, the\nUnited Arab Emirates, and Saudi Arabia are planned for inclusion in the\nLCT cooperation. \u201cOur success with the PBoC and HKMA has triggered other\ncountries to quickly realise cooperation with us. So there is India, and\nalso in our pipeline we have actually started with South Korea, which we\ncontinue to push. Then there is the UAE, and we are also trying to make\nefforts with Saudi Arabia, which is also in process. So we are expanding\nfurther,\u201d she explained.<\/p>\n
Previously, Destry explained that the value of LCT between Indonesia\nand China reached US9b<\/em>i<\/em>l<\/em>l<\/em>i<\/em>o<\/em>n<\/em>,\u2006o<\/em>r<\/em>a<\/em>p<\/em>p<\/em>r<\/em>o<\/em>x<\/em>i<\/em>m<\/em>a<\/em>t<\/em>e<\/em>l<\/em>y<\/em>R<\/em>p<\/em>160.52t<\/em>r<\/em>i<\/em>l<\/em>l<\/em>i<\/em>o<\/em>n<\/em>(a<\/em>s<\/em>s<\/em>u<\/em>m<\/em>i<\/em>n<\/em>g<\/em>a<\/em>n<\/em>e<\/em>x<\/em>c<\/em>h<\/em>a<\/em>n<\/em>g<\/em>e<\/em>r<\/em>a<\/em>t<\/em>e<\/em>o<\/em>f<\/em>R<\/em>p<\/em>17,\u2006835p<\/em>e<\/em>r<\/em>U<\/em>S<\/em><\/span>),\nin May 2026. Cumulatively, from January to May 2026, the value reached\nUS$22 billion, or around Rp392.37 trillion.<\/p>\n BI Governor Perry Warjiyo stated that settling trade and direct\ninvestment in rupiah and renminbi reduces the need for US dollars in\nvarious transactions. \u201cWe call this diversification and it will continue\nto be strengthened. Secondly, we continue to encourage domestic banks\nand businesses, as well as those in China, to increasingly use rupiah\nand renminbi, and this is in line with the internationalisation of the\nrenminbi,\u201d Perry said during the presentation of the BI Board of\nGovernors Meeting results on Thursday (18\/6\/2026).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/after-successful-de-dollarisation-with-china-bi-targets-india-and-south-korea-1782359467",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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