Dasco Appreciates BI's Move to Reduce US Dollar Usage

Jakarta (ANTARA) - Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad has expressed appreciation for Bank Indonesia’s (BI) move to expand the use of local currencies in international transactions, aimed at strengthening the rupiah and reducing dependence on the US dollar.

According to Dasco, this effort was realised through the signing of a Bilateral Currency Swap Arrangement (BCSA) between Bank Indonesia Governor Perry Warjiyo and People’s Bank of China (PBOC) Governor Pan Gongsheng.

“The agreement opens wider space for the use of the rupiah and renminbi in transactions between Indonesia, Mainland China, and Hong Kong, thereby reducing dependence on the US dollar,” Dasco said in a written statement received in Jakarta on Monday.

The strategic agreement was signed during a High-Level Meeting on Thursday (11/6) in Shanghai, China.

Additionally, the signing of a Memorandum of Understanding (MoU) on Local Currency Transaction (LCT) was also expanded to include Hong Kong. During the signing, Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue also signed the agreement.

Local Currency Transaction (LCT) is the settlement of bilateral transactions between business actors or individuals from different countries using each country’s local currency.

Dasco said the MoU also covers the development of a cross-border QRIS payment system between Indonesia and China, allowing business transactions between the two countries to be conducted more easily through connected digital payment systems.

“This system already involves 191 service providers in China and 24 in Indonesia, all of which are already connected,” he stated.

According to Dasco, the cooperation between Bank Indonesia and the People’s Bank of China will further encourage the utilisation of the LCT scheme in trade transactions between the two countries, thus reducing the need to use the US dollar as an intermediary currency.

He noted that the trade value between Indonesia and China in 2025 reached approximately 155.5 billion US dollars, necessitating support from a more efficient transaction system and broader use of local currencies.

“This is a very serious effort to reduce the need for US dollar usage in trade transactions, including through the implementation of cross-border QRIS between Indonesia and China. This step is being taken by BI to strengthen the rupiah,” Dasco said.