Bank Indonesia (BI) stated that trade transactions between Indonesia and China are ready to use Rupiah and Yuan currencies. In other words, these two countries no longer use USD as a transaction tool between the two countries.
Perry Warjiyo, Governor of BI said that all the requirements needed in the Local Currency Settlement (LCS) cooperation have been completed.
The central bank has appointed several banks to support LCS transactions between Indonesia and China. They hoped that trade transactions between the two countries could be increases further.
As additional information, LCS transactions include the direct exchange rate quotes and interbank trading for yuan and rupiah.
BI has also completed socialization with ministries, institutions, and the business sector.
Apart from China, BI has conducted LCS cooperation with the Bank of Thailand, the Ministry of Finance of Japan, and Bank Negara Malaysia.