Indonesia hopes Pertamina and PLN will use local currencies for oil and gas imports
China accounts for about 45 per cent of Indonesia’s non-oil and gas imports, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said he hoped state-owned PT Pertamina (Persero) and PT PLN (Persero) would use local currency transactions (LCT) when buying oil and gas. He said the arrangement could help ease pressure on the rupiah.
Speaking at Bank Indonesia on 12 November 2026, Airlangga linked the benefits of LCT to Indonesia’s substantial trade with China. The event addressed foreign exchange market development and the ecosystem for transactions in rupiah and yuan.
Airlangga said Indonesia’s non-oil and gas imports from China were largely supporting raw materials, machinery and capital goods. Conducting trade in currencies other than the US dollar could reduce pressure on Indonesia, he said.
He described LCT as one way the government was seeking to deepen financial markets. Businesses had started using local currencies in transactions with China, which he said had been an Indonesian LCT partner since 2021.
Airlangga also expressed hope that Indonesian companies would use Bank of China’s clearing services and related derivatives. He identified industry, energy, mining, transport, trade and services as sectors that could use the facilities.
