Reducing Dollar Dependency, Indonesia's LCT Transactions Reach US$49.4 Billion

Bank Indonesia (BI) has recorded a rapid increase in the use of the Local Currency Transaction (LCT) scheme. As of August 2026, the value of LCT transactions has reached the equivalent of US$49.4 billion, nearly double the US$25.7 billion realised throughout 2025.

BI Deputy Governor Thomas Djiwandono stated that this trend demonstrates the strengthening utilisation of local currencies in cross-border trade and investment transactions.

“The development of LCT is very positive. In 202lar, total LCT transactions reached US$25.7 billion equivalent. Meanwhile, as of August 2026, it has already reached US$49.4 billion equivalent,” said Thomas during a press conference following the BI Board of Governors Meeting on Wednesday (23/09/2026).

With the achievements recorded in the first eight months of this year, Thomas estimates that the value of LCT transactions by the end of 2026 will exceed double the previous year’s realisation.

According to him, the growth in LCT usage is one of the efforts to strengthen the national economic structure amidst global uncertainty and high volatility in international financial markets.

“LCT is growing very well. We hope this instrument can help strengthen the economic structure and support national economic growth,” he added.

Currently, Indonesia’s LCT cooperation is active with seven partner countries: China, Japan, Malaysia, Thailand, South Korea, the United Arab Emirates (UAE), and Singapore.

The LCT scheme allows businesses and investors to conduct transactions using their respective local currencies without having to depend on the US Dollar. Consequently, transaction costs and the risks of exchange rate fluctuations can be minimised.

Bank Indonesia also continues to expand its LCT cooperation network with several other countries and regions. Thomas revealed that the central bank is currently developing similar cooperation with India, the Philippines, and Hong Kong.

This step is expected to further expand the use of local currencies in cross-border transactions, while simultaneously strengthening the resilience of Indonesia’s external sector amidst the challenging dynamics of the global economy.