Economist Reveals Phenomenon of Yuan Beginning to Displace Dollar Dominance in Indonesia

Jakarta, CNBC Indonesia - Chief Economist of PT Bank Central Asia, David E. Sumual, has warned of the risk of yuan liquidity tightening in line with the increasing use of the Chinese currency in Indonesia’s international trade.

David explained that Indonesia’s exports to China have risen by 24% and imports from China by 37%. This situation could pose problems because China prefers to be paid in yuan.

“So, it turns out that the yuan is also becoming important domestically. So, if we export there, most of our entrepreneurs ask to be paid in dollars. But when we import, they ask to be paid in yuan,” said David at the Central Banking Forum 2026 themed “Indonesia’s Economic Resilience in Facing Global Exchange Rate Volatility” in Jakarta on Monday (13/4/2026).

“So, yuan liquidity could be affected if this continues in the long term,” he added.

However, David expressed his pleasure that the Ministry of Finance has launched an initiative to fill yuan liquidity through the issuance of Dimsum Bonds.

For the record, the Indonesian government, through the Ministry of Finance, issued Dimsum Bonds to finance the 2025 state budget in October 2025. At that time, the government targeted funds of 6 billion yuan (approximately Rp14 trillion) with two tenors: 5 years (3.5 billion yuan with a yield of 2.5%) and 10 years (2.5 billion yuan with a yield of 2.9%).

Indonesia’s Dimsum Bonds attracted global investors, with total demand reaching 18 billion yuan, or three times the amount issued.