JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani said that Bank Indonesia (BI)'s move to expand cooperation in the use of local currencies in bilateral transactions with other countries has its own goal for the national economy.
According to him, Indonesia can benefit positively from this de-delolarization strategy.
"This is a global shift that is quite fundamental. So every country is trying to improve," he told reporters earlier this week.
The Minister of Finance explained that the exchange rate of each country tends to have its own risks when referring to the same global currency.
Therefore, the expansion of the use of local currencies is considered to be able to better manage the pressure.
In the financial sector, vulnerability (centance) can appear if the majority mismatch. So the maturity is not suitable. Or also the exchange rate problem (has resulted in the use of the same money/dollar) reference," he said.
On that basis, the government supports Bank Indonesia's strategy in strengthening the national economy.
Steps from the Financial System Stability Committee (Kemenkeu, BI, OJK, and LPS) to look at all aspects, especially regarding the balance sheet. So whether there is a source of vulnerableity that we must be aware of," he said.
Most recently, Bank Indonesia has reached an agreement with the Bank of Korea regarding this 'dollar' action.
BI Governor Perry Warjiyo revealed that local currency cooperation reduces transaction fees and exposure to the risk of exchange rates.
"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," Perry said.
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