BI and MAS Appoint Banks to Facilitate Indonesia-Singapore LCT Transactions
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have appointed several banks in Indonesia and Singapore to facilitate local currency transactions (LCT) using the Rupiah and the Singapore Dollar.
These banks, designated as appointed cross currency dealers (ACCD), are authorised to facilitate the settlement of current account transactions, direct investment transactions, and cross-border payments using local currencies.
Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, stated in Jakarta on Monday that this move is expected to provide greater flexibility for businesses and other users when transacting in local currencies, whilst simultaneously reducing exchange rate risks and transaction costs.
On Monday (31/8), BI and MAS announced the operationalisation of the bilateral transaction settlement framework between Indonesia and Singapore using their respective local currencies (LCT). This follows the Memorandum of Understanding signed in August 2022 and the Operational Guidelines agreed upon by both central banks in April 2026.
The agreement has been formalised in the Regulation of the Board of Governors (PADG) Number 25 of 2026 regarding the Settlement of Bilateral Transactions between Indonesia and Singapore Using Rupiah and Singapore Dollars through Banks, serving as the implementation guideline for LCT transactions.
Bank Indonesia stated that this LCT framework will support bilateral trade and strengthen ASEAN financial integration through the wider use of local currencies in intra-ASEAN transactions.
The key features of the LCT framework include the use of direct quotations of the Rupiah against the Singapore Dollar, as well as the relaxation of relevant provisions and regulations to encourage the use of local currencies.
The following is the list of appointed ACCD banks:
ACCD Banks in Indonesia:
PT Bank Central Asia Tbk
PT Bank CIMB Niaga Tbk
PT Bank DBS Indonesia
PT Bank Mandiri (Persero) Tbk
PT Bank Maybank Indonesia Tbk
PT Bank Negara Indonesia Tbk
PT Bank OCBC NISP Tbk
PT Bank Pembangunan Daerah Jawa Timur Tbk
PT Bank UOB Indonesia
ACCD Banks in Singapore:
DBS Bank Ltd.
Oversea-Chinese Banking Corporation Limited
United Overseas Bank Limited