No. 27/162/DKom
In the first half of 2025, the value of Local Currency Transactions (LCT)[1] totalled USD11.7 billion, increasing sharply from USD4.702 billion in the first semester of 2024. In addition to transaction value, the average number of LCT customers has also increased significantly by around 45% on the previous year. To that end, the National LCT Task Force will continue nurturing the use of local currencies in cross-border transactions to strengthen the resilience of the national economy. That was the key takeaway delivered by Bank Indonesia Deputy Governor, Filianingsih Hendarta, at the high-level meeting (HLN) of the National LCT Task Force[2] held in Bank Indonesia, Jakarta (25/07/25), which also agreed the strategic plan and work program for 2026.
At the meeting, the Deputy of Management and Development Coordination for State-Owned Enterprises of the Coordinating Ministry for Economic Affairs, Ferry Irawan, highlighted the important role LCT plays in maintaining economic stability against global and domestic dynamics. The Government has pursued various policies to mitigate the deleterious impact of US reciprocal tariff policy and deepening global geopolitical tensions through a tariff negotiation process with the US, while also finalising the I-EU CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement) and strengthening domestic risk mitigation through various stimuli to maintain public purchasing power as well as boost consumption and investment. Considering global risks continue posing a potential threat to exchange rate stability, Ferry Irawan urged relevant government ministries and agencies to pledge their commitment to expanding the use of LCT within their respective jurisdictions, focusing on key economic sectors, such as mining, minerals, oil and gas as well as agriculture and agro-industry.
Positive LCT performance is in line with the commitment and consistency of the National LCT Task Force in terms of strengthening synergy between authorities and with strategic partners, honing policy incentives as well as implementing targeted, integrated and planned socialisation activities, encompassing export-import businesses. BI Deputy Governor Filianingsih reiterated that the current achievements were supported by efforts to expand LCT use across various sectors and regions, which includes increasing the number of Appointed Cross Currency Dealers (ACCD). Bank Indonesia continues to expand LCT cooperation with the addition of new partner countries, including South Korea in September 2024 and the United Arab Emirates in January 2025. In addition, Bank Indonesia has also strengthened existing LCT cooperation with Malaysia and Thailand by expanding the scope of transactions to support portfolio investment, which began in March 2025, alongside the signing of a Memorandum of Understanding (MoU) to bolster LCT implementation with China.
Expanding the use of local currencies in cross-border transactions is expected to strengthen national macroeconomic stability significantly, while mitigating the risk of exchange rate volatility from global dynamics. Moving forward, the institutional members of the National LCT Task Force will continue strengthening policy coordination and synergy, while harmonising cross-sector work programs, including assessments, periodic surveys and data exchange, to optimise LCT implementation and ensure the positive benefits are felt by the public.
Jakarta, 25nd
Communication Department
Ramdan Denny Prakoso
Executive Director
[1] Bilateral transaction settlement using the local currency of the home country.
[2] Members of the National LCT Task Force include Bank Indonesia, the Coordinating Ministry for Economic Affairs, Indonesia Financial Services Authority (OJK), Ministry of Finance, Ministry of Industry, Ministry of Trade, Indonesia Deposit Insurance Corporation (LPS), Assistant Deputy for Finance of the Ministry of State-Owned Enterprises, and the Ministry of Foreign Affairs.
