{
    "success": true,
    "data": {
        "id": 1679112,
        "msgid": "indonesia-begins-to-abandon-the-us-dollar-heres-the-proof-1776246665",
        "date": "2026-04-15 16:25:22",
        "title": "Indonesia Begins to Abandon the US Dollar, Here's the Proof!",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "Indonesia is actively reducing its reliance on the US dollar through bilateral currency swap arrangements and local currency transactions, providing additional buffers against global financial volatility. Chief Economist at BCA, David Sumual, highlights agreements worth US$90-100 billion with countries including China, Japan, Australia, and South Korea, which serve as secondary liquidity sources during market pressures. These initiatives, including QRIS Cross Border implementations, aim to foster a regional transaction ecosystem less dependent on the dollar, enhancing financial resilience.",
        "content": "<p>Amid the strong dominance of the US dollar in global trade and\nfinance, Indonesia is preparing safeguards to reduce its dependence on\nthe currency of Uncle Sam. These efforts involve diversifying\ntransactions, from using local currencies to financial cooperation with\npartner central banks. One key evidence is the existence of the\nBilateral Currency Swap Arrangement or bilateral currency swap\nagreement. Chief Economist at BCA, David Sumual, considers this scheme\nimportant as it can serve as an additional buffer during turbulent\nfinancial markets, increased dollar pressure, or tightening foreign\nexchange liquidity. Bilateral Swap as a Buffer When the Dollar Pressures\nOne of the most concrete pieces of evidence of Indonesia\u2019s efforts to\nreduce dependence on the US dollar is the Bilateral Currency Swap\nArrangement. Simply put, this is a cooperation agreement between two\ncentral banks to provide each other with liquidity in their respective\ncurrencies if needed at any time. This scheme is crucial because it can\nact as an additional buffer when financial markets are volatile,\npressure on the dollar increases, or foreign exchange liquidity\ntightens. In other words, Indonesia does not solely rely on foreign\nexchange reserves but also has an additional emergency channel through\ncooperation with partner central banks. Chief Economist at BCA, David\nSumual, said Indonesia already has bilateral swap agreements with China,\nJapan, Australia, and South Korea, with a total value of around\nUS$90-100 billion. According to him, this facility can function as a\nsecondary buffer when markets face heavy pressure. \u201cIt\u2019s like insurance\nor a secondary buffer. If there\u2019s a traumatic condition like in 1998,\nnow we have agreements like this,\u201d said David at the Central Banking\nForum 2026 CNBC Indonesia in Jakarta on Monday (13\/4\/2026). The value of\nIndonesia\u2019s bilateral currency swaps is quite substantial. With\nMalaysia, it reaches MYR 8 billion or about Rp28 trillion. With\nSingapore, it is US$10 billion or about Rp171 trillion. Meanwhile, with\nJapan, it is the largest at US$22.76 billion or about Rp389 trillion.\nCooperation with South Korea amounts to KRW 10.7 trillion or about Rp115\ntrillion. Meanwhile, cooperation with China is recorded at CNY 400\nbillion or equivalent to US$55.79 billion, based on the presentation\nmaterial. The existence of this facility is important because it\nprovides additional liquidity when the foreign exchange market is\nvolatile. Thus, when dollar pressure increases or the market experiences\na liquidity shortage, Indonesia does not only rely on primary foreign\nexchange reserves but also has additional buffers from inter-central\nbank cooperation. Not Just Swaps, Local Currency Transactions Are Also\nPromoted Besides bilateral swaps, another sign that Indonesia is\nreducing its dependence on the dollar is the expansion of local currency\ntransactions and cross-border payment systems. In the presentation\nmaterial, Indonesia has implemented QRIS Cross Border with Malaysia,\nSingapore, Thailand, Japan, and South Korea. Meanwhile, cooperation with\nthe Philippines and Brunei Darussalam is still in the planning stage.\nFor Local Currency Transactions (LCT), implementation is already\nunderway with Malaysia, China, Thailand, Japan, South Korea, and the\nUnited Arab Emirates. With Singapore, the Philippines, India, and\nVietnam, it is still in the planning stage. The direction of this policy\nshows that Indonesia is beginning to build a regional transaction\necosystem that does not entirely depend on the US dollar. The larger the\nportion of trade and financial transactions that can be conducted\ndirectly in local currencies, the smaller the need for dollars in\ntransactions between two countries.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-begins-to-abandon-the-us-dollar-heres-the-proof-1776246665",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}