Jakarta, CNBC Indonesia – “Waste dollars” might have been a dream a few years ago. But now Indonesia seems to really be leaving the United States (US) dollar slowly.
In a month, on average, RI managed to reduce dependence on the US dollar by US$ 117.3 million on average every month. This is equivalent to Rp. 1.68 trillion (exchange rate of Rp. 14,400/US$).
Compared to the nominal issued in the trade, it is still small. However, the positive trend is still ongoing.
Bank Indonesia data shows that the ratio of Indonesia-Thailand trade transactions uses the local currency cooperation (local currency settlement/ LCS) in terms of THB/IDR to the total trade of the two countries has reached 1.3% in 2020. This is an increase compared to 0.6% in 2018.
In fact, the same ratio for LCS transactions between Indonesia-Malaysia in MYR/IDR currency has reached 4.1% in 2020. This is almost 3 times the ratio in 2018 of 1.4%.
The development of LCS transactions between Indonesia-Japan denominated in JPY/IDR has also continued to increase since it started in September 2020. In the September-December 2020 period, the ratio to total Indonesia-Japan trade was only recorded at 0.1%.
This indicates an upward trend. In the January-May 2021 period, it has increased significantly to around 3.4%.
“Although the overall LCS transaction usage ratio is still relatively low compared to total trade, looking at the trendpositive, supported by strengthening framework The LCS with the three countries as well as the LCS campaign carried out comprehensively, in the future it is hoped that the use of the LCS with Thailand, Malaysia and Japan will increase,” said Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono to CNBC Indonesia, quoted on Saturday (7/8/2021).
This month, Indonesia and China will also start implementing the SCS. As a major trading partner, an agreement with China will greatly reduce Indonesia’s dependence on the US dollar.
In six months of this year, non-oil exports to China reached US$ 21.2 billion and imports US$ 25.2 billion. Both countries have completed the technical mechanism of the implementation of the SCS.
“Meanwhile, the ACCD LCS cooperation with China has been signed but has not been officially implemented because it is still waiting for the fulfillment of several requirements by the appointed ACCD banks. The progress is very positive so it is hoped that in the near future LCS cooperation with China can be implemented immediately, ” he explained.
In the future, BI will continue to explore cooperation with other countries to join in leaving the US dollar. Namely with South Korea, India and the neighboring Philippines
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