BI's LCT Increases 1.6 Times, China's Transaction Reaches 1 Billion US Dollars As Of October 2025

JAKARTA - Bank Indonesia (BI) reports that the Local Currency Transaction (LCT) transaction, or transaction cooperation using local currencies, increased 1.6 times in October 2025 compared to the same period the previous year.

BI Senior Deputy Governor Destry Damayanti said, until October 2025 there were 15,473 participants who transacted through LCT, while in 2024 the number had only reached 5,053 participants.

"So if we look at the current LCT, the position in October has increased 1.6 times compared to last year's full year period, where the participants have now reached 15,473 participants, even though by 2024 there were only 5,053 participants, now it is 15,473. ," he said in a press conference, Wednesday, November 19.

The implementation of LCT is currently underway with several countries such as Japan, Malaysia, Thailand, China, South Korea, and the United Arab Emirates (UAE). In addition, the LCT cooperation has also been agreed with Singapore and India.

In the future, he said that BI plans to expand foreign exchange monetary operations through spot and swap instruments in Chinese Yuan (CNY) or rent, as well as Japanese Yen (JPY).

According to him, this step is expected to encourage an increase in LCT transactions with the two countries.

Destry added that LCT transactions with China had reached 1 billion US dollars per month.

"Because now our LCT with China continues to increase, in one month it could be 1 billion US dollars. So far, banks may find it difficult to find a bribe or CNY within us. This is what we are trying to improve where we are trying the instruments of monetary operations and the rupiah commitment market," he said.

Destry berharap, tekanan terhadap dolar dapat berkurang karena selama ini mereka harus membeli dolar terlebih dahulu sebelum menukarnya ke renminbi

"Sehingga tentu akan kurangi tekanan ke dolar karena selama ini mereka beli dolar dulu abis itu baru di-convert kteman-tema. Nah ini salah satu contoh yang dilakukan oleh Bank Indonesia, yang tentunya itu akan kita sesuaikan juga dengan LCT, yang sekarang ini perkembangannya luar biasa sekali," jelasnya.

Destry hopes that the pressure on the dollar can be reduced because so far they have to buy the dollar first before exchanging it to a rent.

"So of course it will reduce pressure to the dollar because so far they have bought dollars, after that they have only been converted into friends. Now this is one example carried out by Bank Indonesia, which of course we will also adjust it to LCT, which is currently experiencing extraordinary developments," he explained.