Indonesia’s local currency transactions reach US$52.6 billion
The January–September 2026 value exceeded twice the full-year 2025 figure, according to Bank Indonesia.
Bank Indonesia recorded local currency transactions equivalent to US$52.6 billion in January–September 2026, compared with US$25.7 billion for the whole of 2025.
Governor Destry Damayanti told a Financial System Stability Committee press conference in Jakarta that the central bank remained committed to expanding international cooperation through the local currency transaction (LCT) framework.
Indonesia has put LCT agreements into operation with seven countries: Malaysia, Thailand, Japan, China, South Korea, the United Arab Emirates and Singapore.
To encourage foreign exchange diversification, the central bank offers a 10 per cent premium reduction for conventional hedging swaps with BI. It also provides a 10 per cent reduction for Domestic Non-Deliverable Forward (DNDF) hedging contracts used in international trade and investment. BI said these incentives form part of its efforts to make rupiah exchange rate stabilisation more effective.
Separately, BI has broadened premium incentives for DNDF and swap instruments to encourage foreign portfolio inflows. DNDF premium reductions are 40 per cent for a 6-month tenor and 45 per cent for a 12-month tenor.
For conventional hedging buy-swaps, BI said premiums had been reduced to 15 per cent for 3 months, 20 per cent for 6 months and 25 per cent for 12 months.
