Local Currency Transaction Between Rupiah and Yuan Surges 300%

The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, has revealed that the Local Currency Transaction (LCT) policy instrument between Bank Indonesia and the People’s Bank of China has been a resounding success. A 300% increase in transactions using direct trade between the Rupiah and the Yuan has been recorded, with the value now reaching US$60 billion per year. “It started at US$30 billion and is now heading towards US$60 billion. About a month ago, we also told Bank Indonesia that direct transactions between the Rupiah and Yuan had already risen by 300%. So this is extraordinary,” said Anindya. Beyond LCT, Anindya noted that the use of the QRIS payment system in China is also strengthening rapidly. He attributed this increase to the bustling trade and investment between Indonesia and China, as well as Hong Kong. Previously, Bank Indonesia Senior Deputy Governor Destry Damayanti stated that rapid LCT growth had been recorded with China and Japan. “We at BI facilitate this with spot CNY or yen against the Rupiah. They (investors and traders) need yuan and yen exchange rates domestically. Moreover, trade with China using LCT reached US$9 billion as of May,” Destry said during the Investment Forum 2026 on Wednesday (15/7/2026). Going forward, she confirmed that the promotion of LCT usage will be intensified due to its significant impact on Indonesia’s financial stability. Bank Indonesia, together with the Chinese central bank, will deepen this scheme through further outreach. “If we can manage this, it can have a positive impact on the economy,” she explained.