Japan Becomes Indonesia's Second Largest LCT Partner After China

Governor of Bank Indonesia Perry Warjiyo. (Photo: Screenshot)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said that Japan is now the second largest trading partner after China in the use of non-dolar transactions between the United States (US) and Indonesia.

Perry revealed, this is reflected in the large value of transactions using local currency or local currency transaction (LCT) between Indonesia and Japan which has reached the equivalent of US$5.1 billion as of July 2025.

"Indonesia-Japan LCT is the second largest number after China," Perry said at the LCT & Launching High Level Campaign QRIS Cross Border Indonesia-Japan event, Monday, August 25.

He added that the transaction value, which is equivalent to Rp. 82.9 trillion (assuming an exchange rate of Rp. 16,225 per US dollar), was the result of direct bilateral transactions between Indonesia and Japan in rupiah and yen currency.

"We use bilateral cross border directly between the rupiah and yen," he said.

"So far, this transaction has been widely used for export-imports and supports industrial integration. But we want to go further, namely combining local currency transactions with cross-border digital payment systems," he added.

Furthermore, he said, Indonesia and Japan have agreed to expand the use of LCT, one of which is through the implementation of a QR Code-based digital payment system, namely QRIS for Indonesia and JPQR for Japan.

According to him, with the cross-border payment system, Indonesians can make transactions in Japan only with their cellphones without the need to exchange physical money, and vice versa for Japanese people in Indonesia.

Perry menyampaikan ini adalah babak baru dari kolaborasi ekonomi digital dan keuangan dimana menggabungkan transaksi mata uang lokal, konektivitas pembayaran lintas negara, dan akses pasar keuangan

Dia menambahkan, sehingga dapat menciptakan sistem pembayaran yang mudah, aman, dan efisien, sehingga bukan hanya menyederhanakan transaksi, tetapi juga membangun ekonomi digital yang inklusif.

"Ini terutama penting bagi UMKM tulang punggung masyarakat serta bagi wisatawan dan pelaku bisnis, sehingga kita bisa menjadi bagian yang lebih terintegrasi dalam ekonomi global,” jelasnya.

Perry menyampaikan ini adalah babak baru dari kolaborasi ekonomi digital dan keuangan dimana mengambahkan transaksi mata uang lokal, konektivitas pembayaran lintas negara, dan akses pasar keuangan

He added, so that it can create an easy, safe, and efficient payment system, so that it not only simplifies transactions, but also builds an inclusive digital economy.

"This is especially important for MSMEs the backbone of the community as well as for tourists and business people, so that we can become a more integrated part of the global economy," he explained.