Indonesia urges energy and mining firms to use yuan in China trade
Bank of China’s appointment as a renminbi clearing bank in Indonesia is intended to make local-currency transactions easier for businesses.
Indonesia is encouraging companies, including energy and mining businesses, to settle trade with China in yuan as it seeks to reduce reliance on the US dollar, Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement dated 14 November 2026.
Airlangga urged PT Pertamina (Persero) and PT PLN (Persero) to use the Local Currency Transaction (LCT) scheme for oil and gas trade. He also encouraged businesses in manufacturing, transport, trade and services to use the facilities.
Indonesia and China have operated an LCT partnership since 2021. The establishment of a Renminbi Clearing Arrangement and the appointment of Bank of China as a renminbi clearing bank in Indonesia in June 2026 strengthened that framework. Airlangga said the clearing infrastructure was expected to make yuan transactions easier for Indonesian companies.
Across Indonesia’s seven partner countries, LCT transactions had reached the equivalent of US$49.42 billion through August 2026, with an average of 20,850 users each month, according to the figures presented.
China accounted for around 45 per cent of Indonesia’s non-oil and gas imports during January–September 2026. Indonesia’s main exports to China included iron and steel, mineral fuels, and nickel and its derivatives. Mainland Chinese investment in Indonesia totalled US$4.97 billion over the same period.
The government expects wider use of local currencies to give businesses more payment options, help them manage exchange-rate exposure and improve the efficiency of trade and investment transactions.
