Indonesia Promotes Local Currency Settlement to Strengthen Regional Economic Stability

Perry Wajiyo, the governor of Indonesia's central bank, recently announced a new financial strategy that will see the start of local currency settlements for cross-border transactions with India and Saudi Arabia.

Wajiyo emphasized the importance of the decision at a press conference in Jakarta: "By promoting the use of our own currency, we can achieve a more stable exchange rate as this is no longer subject to fluctuations in the supply of US dollars. This will help maintain macro stability in the Indonesian economy and benefit trade and monetary stability in the Southeast Asian region."

Indonesia reportedly achieved significant growth in its local currency settlement business last year. transactions reached $5.9 billion in 2023, an increase of 55.2% compared to 2022.

In addition, in March 2023, at the ASEAN Finance Ministers and Central Bank Governors' Meeting, ASEAN member countries agreed to advance the use of local currencies and to reduce dependence on the current major international currencies in cross-border trade and investment within the region. This agreement will further promote close cooperation and autonomy of the regional economy.

Sources of information:Xinhua News Agency Jakarta