ASEAN Countries Leave Congregational Dollars, BI Governor Reveals This Motive Is The Reason

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo admitted that the collective spirit of economic development continues to occur in the Southeast Asia region.

According to him, this motivation is also reflected in strengthening cooperation between central banks throughout ASEAN.

In particular, Perry highlighted the issue of using local currency or Local Currency Transaction (LCT) in economic cooperation.

He argues, if the implementation of LCT transactions can reduce dependence on foreign currencies, especially the US dollar.

"Why are we expanding local currency transactions in ASEAN? This is not only done with five countries, namely Indonesia, Malaysia, Thailand, Singapore, the Philippines, but also (development) with Vietnam, Brunei Darussalam, and other countries, namely Laos and Cambodia," he said in a message on a virtual channel, quoted Friday, September 29.

Perry said that the expansion of local currency transactions in fellow regional countries will certainly continue to develop in the future.

"Because this is wrong from risk management by diversifying the currency," he said.

Therefore, continued Perry, Bank Indonesia and a number of ASEAN central banks view the expansion of cooperation with partners such as China and Japan as strategic matters.

"We are also building cooperation with India regarding the diversification of this currency," he said.

Perry added, with this LTC scheme, ASEAN provides its own offer for financial asset choices. He said.

"The expansion of LTC implementation can further strengthen external resilience and deepen financial markets through accessibility and cost efficiency," said BI Governor Perry Warjiyo.