Airlangga Presents Evidence to Prabowo that Indonesia Can Reduce Dollar Dependence

Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto presented developments in dollar-free transactions using local currency or local currency settlement (LCS) schemes to President Prabowo Subianto during a Full Cabinet Meeting at the State Palace in Jakarta on Friday, 13 March 2026.

Airlangga explained that the use of LCS in Indonesian trade transactions with several partner countries has experienced significant growth over the past year.

“We have also seen increased local currency settlement with countries such as Malaysia, Thailand, Japan and China,” Airlangga told Prabowo.

LCS transaction values reached $25.56 billion, equivalent to approximately Rp 431.96 trillion (based on an exchange rate of Rp 16,900/USD). This figure surged compared to the same period last year, which recorded $12.9 billion.

According to Airlangga, the increase in transactions also reflects strong synergy between the government and Bank Indonesia in promoting LCS usage.

“This naturally compensates for each other. There is also strong synergy with Bank Indonesia,” he said.

Airlangga noted that if this trend continues to be encouraged, Indonesia’s demand for US dollars in trade transactions could decline. Consequently, pressure on the dollar within Indonesia’s trade payment system could be further reduced.

“If we continue to drive this, the demand and pressure on the dollar will decline, Mr President,” he said.