Makassar. The total value of Indonesia’s local currency transactions, which bypass the US dollar in cross-border trade and financial settlements, surged 309% to $22.61 billion during January–April 2026 from $7.33 billion in the same period a year earlier, a Bank Indonesia official said on Friday.

Ruth Cussoy Intama, director of financial market development at Bank Indonesia, said the central bank has already implemented local currency transaction arrangements with China, Japan, South Korea, Thailand, and Malaysia.

Indonesia is also exploring similar arrangements with Singapore, India, and Saudi Arabia, she told reporters in Makassar.

Under the local currency transaction framework, businesses can settle trade directly in domestic currencies without first converting into US dollars, making transactions more efficient and reducing exposure to exchange-rate volatility.

Previously, companies typically had to convert local currencies into dollars before exchanging them again into the destination country’s currency.

“The policy does not mean we are avoiding the US dollar, because we know global transactions are still dominated by the dollar,” Ruth said.

“But for countries with large transaction volumes that can directly use their domestic currencies, why should they first go through the dollar?” she added.

According to Ruth, the local currency transaction policy also plays an important role in mitigating pressure on the rupiah against the US dollar and helping Indonesia manage risks stemming from global economic uncertainty.

The scheme operates through bilateral agreements allowing businesses in Indonesia and partner countries to use local currencies via appointed cross-currency dealers, reducing dependence on the dollar in trade and financial transactions.