JakartaGlobe-Apr 13
Indonesia is accelerating efforts to reduce reliance on the US dollar by expanding the use of local currencies in cross-border transactions, with the value of such transactions surging 163% year-on-year in early 2026. Under the local currency transaction (LCT) framework, total transactions reached $8.45 billion in January–February 2026, up sharply from $3.21 billion in the same period a year earlier, government data show. The growth was supported by a rising number of users, which reached 14,621 in February 2026, with an average of 16,030 monthly users—well above the 2025 average of 9,720. Ferry Irawan, deputy for coordination of state-owned enterprise management and development at the Coordinating Ministry for Economic Affairs, said the LCT framework has continued to expand since its launch in 2018. “LCT utilization has broadened across key sectors, including manufacturing, electricity and gas, transportation, trade, and services. This demonstrates LCT’s role as a concrete instrument to strengthen the rupiah and support real-sector activity,” Ferry said in a statement on Sunday. In 2025, LCT implementation was extended to six key partner countries — Malaysia, Thailand, Japan, China, South Korea, and the United Arab Emirates — with strengthened bilateral arrangements aimed at deepening regional financial cooperation and expanding local currency usage. Ferry noted that Indonesia’s trade structure is well-positioned to support LCT optimization, as many of its major trading partners operate outside the dollar zone. The country recorded a consistent trade surplus, reaching $1.27 billion in February 2026, driven by non-oil and gas exports such as coal, palm oil, and iron and steel. Read more at: https://jakartaglobe.id/business/indonesia-accelerates-dedollarization-as-local-currency-transactions-surge-163#google_vignette
