Jakarta, IO – The government officially formed a national task force (Satgas) to encourage increased use of local currency in Indonesia’s bilateral transactions with partner countries, dubbed Local Currency Settlement (LCS).
This step was taken as a concrete effort to reduce dependence on foreign currency, especially the US dollar. Bank Indonesia (BI) believes that the Task Force will serve as a forum for coordination to strengthen synergy between partner countries, per Kompas, Wednesday (6/9).
“The task force was formed to encourage the implementation of the LCS framework, in order to increase the stability of the rupiah exchange rate and strengthen the resilience of the domestic financial market,” said BI governor Perry Warjiyo.
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Perry hopes the task force will contribute positively to export-import activities, investment, cross-border payment transactions such as the use of quick response (QR) code. He also hopes that this step can facilitate securities trading transactions.
Indonesia has previously established the LCS program with a number of countries in the region including Malaysia, Thailand, Japan and China. (un)