Antara News·Indonesia·Tuesday, November 3, 2026 at 02:12 PM UTC

BI records LCT transactions at US$52.6 billion through September

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Rizka Khaerunnisa, Yashinta Difa

Jakarta (ANTARA) - Bank Indonesia (BI) recorded a massive expansion in bilateral trade settlements, with local currency transaction (LCT) values reaching an equivalent of US$52.6 billion between January and September 2026.

The figure is more than double the total transaction value recorded across the entire 2025 fiscal year, which stood at US$25.7 billion—signaling rapid adoption among regional trading partners.

"The implementation of LCT continues to show positive progress," BI Governor Destry Damayanti said during a press conference held by the Financial System Stability Committee (KSSK) in Jakarta on Tuesday.

Destry emphasized that the central bank remains committed to strengthening and expanding international cooperation under the LCT framework.

Indonesia has operationalized LCT agreements with seven key partner nations, including Malaysia, Thailand, Japan, China, South Korea, the United Arab Emirates, and Singapore.

To accelerate foreign exchange diversification, BI continues to extend specific policy incentives for LCT transactions.

These include a 10 percent reduction on premiums for conventional hedging swaps with the central bank, as well as a 10 percent reduction for Domestic Non-Deliverable Forward (DNDF) hedging contracts utilized for international trade and investment.

This incentive policy for LCT transactions is part of the central bank’s broader efforts to enhance the effectiveness of its rupiah exchange rate stabilization measures.

Furthermore, to boost foreign portfolio inflows, BI has expanded its premium-reduction incentives for instruments such as DNDF and swaps.

For DNDF hedging contracts, the reduction is set at 40 percent for a 6-month tenor and 45 percent for a 12-month tenor.

Meanwhile, for conventional hedging buy-swaps, premiums have been reduced to 15 percent for 3 months, 20 percent for 6 months, as well as 25 percent for 12 months.

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