Bank Indonesia is seeing clear momentum from its Local Currency Settlement or LCS scheme, a policy designed to let cross border trade move without relying on the greenback. And the numbers now back it up.
From January to November 2025, LCS transaction value reached US$22.13 billion, or about Rp367.22 trillion. That figure almost doubled compared with the same period last year, which stood at US$12.5 billion. Under this scheme, trade between partner countries is settled directly in each country’s local currency, cutting out the US dollar entirely.
“So if we look at the data, LCS continues to show very positive results,” Destry Damayanti said during the December 2025 Board of Governors Meeting press conference on Wednesday (17/12/2025).
The surge is not happening by accident. According to Destry, the main driver is participation. More businesses are now choosing to use LCS for their transactions. Bank Indonesia records show the number of LCS users has grown to between 13,000 and 15,000 companies.
China remains Indonesia’s most dominant LCS partner. Transactions involving China account for roughly 64 percent of total LCS volume. Japan follows at a distance, contributing 17.8 percent.
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The network is also expanding. Throughout 2025, Bank Indonesia officially added South Korea and the United Arab Emirates as new LCS partner countries. Destry noted that these additions played a role in boosting overall transaction value during the year.
And the expansion is far from over. The central bank is already preparing the next phase. India and Singapore are expected to fully implement LCS in the near future.
“The ones we have already signed MoUs with are India and Singapore,” Destry said.
Beyond those two, discussions are also underway with Hong Kong. Bank Indonesia views the territory as a strategic partner due to the scale of trade and investment flows between the two economies.
“We know that we also have significant trade and investment transactions with Hong Kong,” Destry concluded.
Taken together, the growing transaction value, rising number of users, and expanding list of partner countries show how Indonesia’s push for dedollarisation is moving from policy ambition to practical reality.
