Bank Indonesia projects the value of local currency transactions in trade and investment will reach $55 billion by the end of 2026, more than double the roughly $25 billion realised in 2025, Governor Destry Damayanti said at the Danantara TIIF26 event at the Fairmont Hotel in South Jakarta.
“The LCT transaction value is currently around, projected at US$55 billion by year-end, whereas last year it was only around US$25 billion, mainly from China, which is very large,” Destry Damayanti, Governor of Bank Indonesia, said.
Dollar reliance in focus
The local currency transaction scheme allows exporters, importers and investors to settle deals directly in local currencies rather than through the US dollar. Bank Indonesia currently has LCT cooperation with six to seven countries.
Those listed include Malaysia, Thailand, Japan, China, South Korea, the UAE and Singapore. China’s contribution stands out as the largest driver behind the projected increase.
“Diversifying the currencies used for export, import and investment transactions will reduce the use of the US dollar, so our exchange rate will also be more balanced,” Destry Damayanti said.
Wider interest from Asia
Singapore has expressed interest in joining the LCT scheme. India wants both LCT access and an expansion of cross-border QRIS, the quick response payment code system.
Several other central banks have approached Bank Indonesia about similar cooperation. No date beyond the year was given for the 2025 realisation figure.
Source: Bank Indonesia
