Jakarta, CNBC Indonesia – Indonesia and China are increasingly compact in leaving the United States (US) dollar in their bilateral cooperation transactions. Both agreed to use local currency or Local Currency Settlement (LCS), both rupiah and yuan.
This is reflected in the value of transactions between Indonesia and China using the LCS which has reached up to US$ 15.1 million as of October 21, 2021.
“The development of LCS transactions in 2021 continues to show a positive increase. LCS transactions were recorded at US$ 15.1 million for CNY/IDR,” BI wrote in its presentation quoted on Friday (12/24/2021).
When viewed from BI data, transactions using LCS between Indonesia and China are still smaller than other countries. The highest transaction using LCS RI was with Japan at US$102.3 million.
Then the second highest with Malaysia at US $ 45.3 million and with Thailand recorded US $ 17 million. This is all data until October 21, 2021.
Meanwhile, in total, LCS transactions in Indonesia reached US$ 348 million in 2018, US$ 760 million in 2019, US$ 800 million in 2020, and US$ 1.68 billion until October 2021.
“In general, LCS transactions in Indonesia have shown positive developments since 2018,” wrote BI.
The implementation of the LCS cooperation is one of BI’s ongoing efforts to encourage a wider use of local currencies in the settlement of trade transactions and direct investment with various partner countries.
The expansion of the use of LCS is expected to support the stability of the Rupiah through its impact on reducing dependence on certain currencies in the domestic foreign exchange market.
(me/me)
– .
