Indonesia expects local-currency transactions to reach US$55 billion in 2026
Bank Indonesia says cooperation with China is the main driver, as it seeks to reduce reliance on the US dollar for trade and investment.
Bank Indonesia forecasts that trade and investment transactions settled in local currencies will reach US$55 billion by the end of 2026, more than double the approximately US$25 billion recorded in 2025.
Governor Destry Damayanti said cooperation with China accounted for much of the increase. She gave the forecast at the Danantara TIIF26 event at the Fairmont Hotel in South Jakarta on 26 October 2026.
Destry said the central bank was encouraging local-currency settlement for exports, imports and investment to lessen dependence on the US dollar. She said using a wider range of currencies for international transactions was also expected to help maintain balance in the rupiah’s exchange rate amid global market developments.
Bank Indonesia has local-currency transaction arrangements with around six to seven countries and is pursuing further bilateral cooperation with trading partners, Destry said. India has expressed interest in both local-currency transactions and cross-border use of the Quick Response Code Indonesian Standard (QRIS). Other central banks have also approached Bank Indonesia to explore similar arrangements, she added.
