Wahyu Dwi Anggoro
"This provides more options for users for trade transactions and serves as a key to improving transaction efficiency and strengthening macroeconomic stability by encouraging more extensive use of local currencies for bilateral trade transactions. Bank Indonesia believes these initiatives mark a key milestone in strengthening bilateral financial cooperation between Korea and Indonesia," he added.
The two central banks have expressed a strong commitment to implementing the local currency transactions framework to strengthen cross-border trade, enhance regional financial market stability, and deepen the local currency market in both countries.
This initiative aligns with the financial integration efforts of countries in the region to facilitate the wider use of local currencies.
"Indonesia, with its vast territory and population base, plays a crucial role in the global supply chain of advanced sectors such as batteries and electric vehicles. The interest of Korean businesses in Indonesia is also steadily growing," BOK Governor Rhee Chang Yong stated.
"Against this backdrop, the implementation of the LCT framework which promotes the use of local currencies in bilateral trade transactions, is expected to positively impact economic development through promoting bilateral trade and also wider use of local currency. Based on Indonesia's experience in successfully implementing LCT framework with a number of other countries over the past few years, it is expected that the framework between Korea and Indonesia will also be successfully implemented and established. To achieve this objective, both central banks pledge to exert their utmost efforts," he added. (WHY)
