Local Currency Transactions Surge 309% as BI Pushes to Reduce US Dollar Dependence

JAKARTA - Indonesia’s efforts to reduce reliance on the US dollar are bearing fruit. Bank Indonesia (BI) recorded Local Currency Transaction (LCT) volumes of $22.61 billion, or approximately Rp400.19 trillion at an exchange rate of Rp17,700 per dollar, for January to April 2026. This represents a 309% year-on-year increase compared to the same period last year’s $7.33 billion. The central bank continues to promote the expansion and use of local currency for cross-border trade, investment, financial markets, banking, and payment transactions. BI’s Director of Financial Market Deepening Department, Ruth A. Cussoy Intama, stated that the growth in LCT transactions demonstrates Indonesia’s strengthening efforts to curb US dollar dependence amid global uncertainties. “This is just January to April. Hopefully, both volume and participants continue to rise,” Ruth said during a BI media briefing in Makassar on Friday, 21 June 2026. BI is also expanding cooperation with other countries, including India and Saudi Arabia. LCT is a bilateral transaction mechanism using local currencies through appointed banks or Appointed Cross Currency Dealers (ACCDs) designated by each country’s central bank. Under this scheme, exporters and importers can transact directly using domestic currencies without needing the US dollar as an intermediary. Transactions can instead be conducted using the local currency pair of each respective country. BI encourages the use of LCT not only for goods and services trade but also for investment, financial markets, banking, and cross-border payments.