Bank Indonesia is pursuing local-currency settlement and cross-border payment links, though business adoption will depend on liquidity, pricing and regulatory coordination.
Indonesia is pressing BRICS members to turn broad financial-cooperation pledges into practical payment arrangements. At a meeting of finance ministers and central bank governors in Mumbai on September 9–10, Bank Indonesia Governor Destry Damayanti called for greater use of national currencies and stronger cross-border payment connectivity as geopolitical tensions fragment the global economy.
The initiative is intended to give companies additional ways to settle international transactions—not to create a common BRICS currency or immediately displace the US dollar. Bank Indonesia, the country’s central bank and payment-system regulator, said members agreed to pursue closer cooperation while respecting their different development levels and domestic priorities.
Key facts
- 10 BRICS members attended the Mumbai discussions.
- Three Indonesia–India initiatives were highlighted: local-currency transactions, a bilateral currency-swap arrangement and cross-border QR payments.
- The meeting also covered AI, cybersecurity, sustainable finance and IMF governance reform.
Indonesia’s most concrete talks were with Reserve Bank of India Governor Sanjay Malhotra. The two sides discussed accelerating a Local Currency Transaction framework, which would allow eligible trade and investment payments to be settled directly in rupiah and rupees. They also considered a Local Currency Bilateral Swap Arrangement, under which the central banks could exchange currencies to support market liquidity.
For importers and exporters, direct settlement could reduce the cost of converting payments through an intermediary currency and limit exposure to swings in dollar funding conditions. Banks could benefit from increased demand for foreign-exchange services, trade finance and hedging products. Cross-border QR connectivity could also simplify smaller payments made by tourists, merchants and digital businesses.
Yet the commercial benefits are not automatic. Local-currency settlement requires sufficiently deep rupiah–rupee markets, competitive exchange rates and reliable hedging instruments. Persistent trade imbalances could leave banks holding currencies for which demand is limited, while inconsistent technical standards, anti-money-laundering requirements and cybersecurity protections may slow payment integration.
The policy therefore represents diversification rather than wholesale “de-dollarization.” Many commodities and international contracts remain priced in dollars because of the currency’s liquidity and extensive financial infrastructure.
For Indonesia, the larger strategic aim is resilience. Jakarta wants BRICS cooperation to produce usable economic links rather than remain at the level of diplomatic commitments. Success will ultimately be measured by transaction volumes, business participation and whether the new channels prove cheaper and more reliable than existing payment routes.