Local Currency Transactions Between Countries Reach 11.7 Billion US Dollars To Semester I-2025

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia (BI) reported that until mid-2025, the transaction value of the Local Currency Transaction (LCT) reached 11.7 billion US dollars, an increase sharply compared to the value of LCT transactions in the first semester of 2024 of 4.702 billion US dollars.

Deputy Governor of Bank Indonesia, Filianingsih Hendarta said that not only the transaction value, but the average number of LCT customers also grew significantly, or an increase of about 45 percent compared to the previous year.

"For this reason, the LCT National Task Force will continue to encourage the use of local currencies in cross-border transactions to strengthen national economic resilience," he said in his statement, quoted on Sunday, July 27.

Filianingsih said that LCT's positive developments were in line with the commitment and consistency of the LCT National Task Force in strengthening synergy between authorities and strategic partners, adjusting incentive policies, as well as targeted, integrated and planned socialization, including for export-import businesses.

He emphasized that this achievement was supported by efforts to reach wider LCT utilization in various sectors and regions, including the expansion of Bank Appointed Cross Currency Dealer (ACCD) participants.

"The expansion of LCT cooperation continues with the addition of new partner countries, namely South Korea in September 2024 and the United Arab Emirates in January 2025," he said.

According to him, cooperation with existing partner countries such as Malaysia and Thailand, also continues to be strengthened through expanding transaction coverage to support portfolio investment, which will be implemented in March 2025 and the signing of the MoU for strengthening LCT with China.

He conveyed that the expansion of local currency use in cross-border transactions is expected to further contribute to strengthening national macroeconomic stability, as well as mitigating the risk of exchange rate volatility sourced from global dynamics.

In the future, Filianingsih said that the Ministry/Institution of members of the LCT National Task Force will further strengthen coordination and policy synergy, as well as harmonize cross-sector work programs, including through assessments, periodic surveys, and data exchanges, to optimize LCT implementation and ensure its positive impact on the community.

On this occasion, Deputy for Coordination of State-Owned Enterprises' Business Management and Development, Coordinating Ministry for Economic Affairs, Ferry Irawan, highlighted the important role of LCT in efforts to maintain economic stability, in the midst of global and domestic dynamics.

"The government has sought various policies to mitigate the impact of global US and geopolitical tariff policies, through the tariff negotiations process with the US and also agreed on the I-EU CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement)," he said.

He added that the Government also continues to carry out domestic risk mitigation through various stimuli to maintain purchasing power and encourage consumption and investment.

Given that global risks still have the potential to disrupt exchange rate stability, Ferry Irawan invites related Ministries and Institutions to commit according to their role in encouraging the expansion of the use of LCT, especially in potential economic sectors such as the Mining, Mineral, and Oil and Gas sectors as well as the Agricultural and Agroindustry sectors.