Hoax: Indonesia stops using US dollar and switches to Chinese currency

A Facebook social media post claims Indonesia has officially ceased using the US dollar in international transactions. The post also states that Purbaya Yudhi Sadewa decided to shift Indonesia’s payment system to the Chinese yuan and issue Panda Bonds to strengthen the rupiah’s exchange rate. The post’s narrative reads: ‘Indonesia stops using US dollar, Purbaya switches to Chinese yuan and issues Panda Bonds to strengthen rupiah’. However, is it true that Indonesia has stopped using the US dollar and switched to the Chinese yuan? Investigations found no official information or statements from the government or credible media claiming Indonesia has ceased using the US dollar in international transactions. The issue of rupiah weakening against the US dollar did attract public attention following pressure on the exchange rate due to global economic conditions. However, the government has never announced a unilateral cessation of US dollar usage. According to Bank Indonesia, the US dollar remains a key currency in Indonesia’s foreign reserves and international transactions. Furthermore, local currency transaction (LCT) agreements are only limited to certain partner countries and do not signify a switch to the Chinese yuan. No official statement from Purbaya Yudhi Sadewa has been found claiming Indonesia has stopped using the US dollar or switched the national payment system to the Chinese yuan. Therefore, the claim that Indonesia has stopped using the US dollar and switched to the Chinese yuan is false and constitutes a hoax.