Dollars Are Getting Abandoned, RI-South Korea Agrees To Use Local Money For Transactions

JAKARTA Bank Indonesia (BI) is said to have agreed with the Bank of Korea regarding cooperation in the use of local currencies for each country in bilateral transactions between Indonesia and South Korea (South Korea). This synergy emerged during the working visit of BI Governor Perry Warjiyo to South Korea earlier this week.

"This agreement will encourage the use of local currencies for each country in bilateral transactions between Indonesia and South Korea, such as current account transactions, direct investments, and other economic and financial transactions that will be agreed upon by the two authorities," Perry said in a written statement today, Tuesday, May 2.

According to him, cooperation marks an important achievement in strengthening bilateral financial collaboration between Bank Indonesia and Bank of Korea.

"Business actors can take advantage of this collaboration to reduce transaction fees and exposure to the risk of exchange rates in conducting bilateral transactions between the two countries, including through the direct use of exchange rate quotas between Korean Won and Rupiah in interbank trade," he said.

Perry added that this cooperation will continue to be strengthened through information sharing and periodic discussions between the Indonesian and South Korean authorities.

"The authorities of the two countries view that the wider use of local currencies for bilateral transactions will ultimately contribute to promoting trade between Indonesia and South Korea and deepening the financial market in local currencies in both countries," he stressed.