No: 27/220/DKom
Indonesia and other ASEAN member states have continued strengthening their commitment to using Local Currency Transactions (LCT). This initiative plays an important role in nurturing an efficient flow of trade and investment, dampening exchange rate volatility risk, and supporting financial market deepening efforts, thereby achieving financial integration along with sustainable and inclusive economic growth in the ASEAN region. That was the key takeaway delivered by Bank Indonesia Deputy Governor, Filianingsih Hendarta, at the Joint ASEAN LCT Campaign in Yogyakarta (18/09/25) hosted in synergy with Bank Negara Malaysia (BNM) and the Bank of Thailand (BoT) as part of the 30th ASEAN Senior Level Committee series of activities.
Director of the International Department, Bank of Thailand, Nithiwadee Soontornpoch, took the opportunity to emphasise that given the large share of international trade between Thailand and ASEAN countries, the opportunity to increase the use of local currency transactions remains massive. This view was reinforced by the Assistant Governor of Bank Negara Malaysia (BNM), Mohamad Ali Iqbal Abdul Khalid, stating that close collaboration between central banks has increased the use of local currency transactions in bilateral trade as a catalyst of regional growth moving forward.
As of July 2025, LCT recorded a total value of USD14.1 billion (equivalent), recording 112% (yoy) growth from USD6.7 billion (equivalent) in the same period of the previous year. This is equivalent to 87% of total transactions throughout 2024, totalling USD16.28 billion (equivalent). From a user perspective, the number of LCT customers has increased to an average of 7,568 per month in 2025 from 5,020 per month in 2024.
Bank Indonesia began local currency transaction cooperation in 2016 through the signing of a Memorandum of Understanding (MoU) on Local Currency Settlement with Malaysia and Thailand. This initiative was officially implemented in 2018 and has since developed rapidly with the participation of six partner countries. Improving the consistency and scalability, Bank Indonesia, Bank Negara Malaysia and Bank of Thailand agreed to harmonise the LCT Operational Guidelines as a regional reference, ensuring standardised and transparent operations, while facilitating negotiations between ASEAN member states.
The use of local currencies in cross-border transactions is expected to strengthen macroeconomic resilience nationally, while reducing vulnerabilities to global exchange rate shocks. As a follow-up activity, after the campaign seminar, a one-on-one consultation clinic was held with Appointed Cross Currency Dealers (ACDD) for participants requiring further technical assistance concerning LCT.
Jakarta, 18th September 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
