Dedollarization is the process of reducing or lowering the US dollar as a means of payment in the current economic context. Indonesia has been implementing this initiative for a long time, with Bank Indonesia (BI) announcing cooperation with India's central bank, the Reserve Bank of India (RBI), to use their respective countries' local currencies, namely the rupiah and rupee, in trade and investment transactions between the two countries. This collaboration is part of dedollarization.India is the seventh country to establish Local Currency Transaction (LCT) cooperation with Indonesia, through BI. Since 2018, Indonesia has collaborated with six central banks from six countries to implement LCT. The aim is to maintain the stability of the rupiah exchange rate and increase efficiency in the business sector.At the end of 2023, the LCT scheme generated transactions equivalent to 6.3 billion US dollars, an increase of 53% compared to 2022. However, the value of 6.3 billion US dollars is relatively small compared to the total trade from the six countries that have collaborated with LCT with Indonesia. Dedollarization and the industrial world should go hand in hand, as both aim to streamline the industrial supply chain and boost the national economy. (ICE GIACARTA)

Fonte notizia: Kompas, 13 March 2024