Yuan Gains Traction in Indonesia as BI Eases Banking Transactions

Jakarta, CNBC Indonesia - Bank Indonesia (BI) has eased yuan transactions in the domestic banking sector as demand for Local Currency Transaction (LCT) schemes continues to grow.

Governor Perry Warjiyo stated that monthly LCT transactions between Indonesia and China currently stand at approximately US$3.7 billion (Rp66.11 trillion, based on an exchange rate of Rp17,867 per US dollar), with annual cumulative transactions reaching US$25 billion (Rp446.69 trillion).

“Chinese yuan is now being transacted domestically due to our largest LCT with China,” Perry said at the Coordinating Ministry for Economic Affairs office in Jakarta on Thursday, 28 May 2026.

He emphasised that domestic banks now offer comprehensive yuan transaction facilities following BI’s expansion of transaction instruments.

Transactions involving the yuan can now be conducted directly through domestic banks, including cash, spot, currency swaps, and forward transactions.

“Should you hold significant yuan domestically, you can transact it immediately—cash, spot, swap, or forward,” Perry added.

In line with this, BI is also promoting yuan usage under the latest Natural Resource Export Proceeds (DHE SDA) regulations.

Previously, DHE SDA instruments predominantly used US dollars, but BI will expand the currencies available to exporters.

Alongside broadening currency options, BI has extended DHE SDA instrument tenors to 12 months. Perry stated the policy aims to provide exporters with greater flexibility in managing foreign exchange earnings held in domestic banks.