After Successful De-Dollarisation with China, BI Targets India and South Korea

Bank Indonesia (BI) has disclosed significant interest from multiple nations in conducting bilateral transactions using local currencies, building on its existing framework with China. The central bank is now targeting several other countries for local currency settlement (LCT) agreements.

Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that several countries have begun to show interest in LCT following BI’s cooperation with the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA).

“The reaction to LCT has been extraordinary. After we signed the MoU with the PBoC and HKMA, it truly surprised several countries in the region. They realised this signifies a major agreement, which ultimately encouraged other nations that are also our trading partners,” Destry said during CNBC Indonesia’s Economic Update 2026, quoted on Wednesday (24/6/2026).

Destry noted that India has expressed interest in LCT and is currently in the discussion phase ahead of signing a cooperation agreement. “India, for instance, is moving quickly to establish an LCT with us. We are actually in the process, but drafting an MoU cannot happen instantly because we must consider the implementation, and each country certainly has its own regulations,” she continued.

Besides China and India, other countries such as South Korea, the United Arab Emirates, and Saudi Arabia are planned for inclusion in the LCT cooperation. “Our success with the PBoC and HKMA has triggered other countries to quickly realise cooperation with us. So there is India, and also in our pipeline we have actually started with South Korea, which we continue to push. Then there is the UAE, and we are also trying to make efforts with Saudi Arabia, which is also in process. So we are expanding further,” she explained.

Previously, Destry explained that the value of LCT between Indonesia and China reached US9billion, orapproximatelyRp160.52trillion(assuminganexchangerateofRp17, 835perUS), in May 2026. Cumulatively, from January to May 2026, the value reached US$22 billion, or around Rp392.37 trillion.

BI Governor Perry Warjiyo stated that settling trade and direct investment in rupiah and renminbi reduces the need for US dollars in various transactions. “We call this diversification and it will continue to be strengthened. Secondly, we continue to encourage domestic banks and businesses, as well as those in China, to increasingly use rupiah and renminbi, and this is in line with the internationalisation of the renminbi,” Perry said during the presentation of the BI Board of Governors Meeting results on Thursday (18/6/2026).