Indonesia's Non-Dollar Transactions with Six Countries Reach Rp575.72 Trillion

Jakarta, CNBC Indonesia - The local currency settlement (LCS) scheme provided by Bank Indonesia (BI), which facilitates transactions without using the US dollar, continues to grow. Bank Indonesia Senior Deputy Governor Destry Damayanti revealed that more countries are now interested in utilising this transaction scheme with Indonesia. “The reaction to LCT has been extraordinary,” she stated during the CNBC Indonesia Economic Update 2026 on Wednesday (24/6/2026). According to Bank Indonesia records, total LCT transactions in the first five months of 2026, up to May, reached US$32.89 billion, equivalent to Rp575.72 trillion (at an exchange rate of Rp17,991 per US dollar), conducted with six countries. The breakdown includes transactions with China worth US$27.93 billion, Japan US$2.67 billion, Malaysia US$1.48 billion, Thailand US$505 million, South Korea US$98.4 million, and the United Arab Emirates US$209.7 million. The total transaction value for 2026 to date has already exceeded the full-year realisations of the previous two years. Throughout 2024, the total LCT transaction value with the six partner countries was US$12.49 billion, while in 2025 it amounted to US$25.71 billion. In terms of the number of business participants, the total reached 80,188 up to May 2026, slightly lower than the 116,645 recorded throughout 2025, but higher than the 60,240 recorded in 2024. In the first five months of this year, the highest number of business participants using LCT came from China with 28,576, followed by Malaysia with 18,455, South Korea with 15,443, Japan with 12,471, Thailand with 3,260, and the United Arab Emirates with 1,983. Beyond the six countries already conducting transactions, Destry noted that India is now showing interest in the LCT scheme and is currently in the discussion phase towards signing a cooperation agreement. “For instance, India is keen to quickly establish an LCT with us, because we are actually already in the process. However, creating a Memorandum of Understanding cannot happen instantly, as we must consider the implementation and each country certainly has its own regulations,” she added.