Bank of Indonesia reported that ASEAN member states are strengthening their commitment to Local Currency Transactions (LCT) for cross-border trade and investment, highlighting rapid growth in usage and an agreement with Bank Negara Malaysia and the Bank of Thailand to harmonise LCT operational guidelines as a regional reference. As of July 2025, LCT totalled USD14.1 billion (equivalent), up 112% year on year from USD6.7 billion, and representing 87% of the USD16.28 billion recorded across 2024. The average number of LCT customers rose to 7,568 per month in 2025 from 5,020 per month in 2024. Bank of Indonesia noted LCT cooperation began with a 2016 memorandum of understanding with Malaysia and Thailand, was implemented in 2018, and has since expanded to six partner countries; the harmonised guidelines are intended to support standardised and transparent operations and facilitate negotiations among ASEAN member states. Following the Joint ASEAN LCT Campaign event in Yogyakarta on 18 September 2025, a one-on-one consultation clinic was held with Appointed Cross Currency Dealers to provide technical assistance on LCT.
Bank of Indonesia 2025-09-22
Bank of Indonesia and ASEAN central banks harmonise local currency transaction guidelines as LCT volumes reach USD14.1 billion
Bank of Indonesia announced that ASEAN member states are enhancing their commitment to Local Currency Transactions (LCT) for cross-border trade and investment, with usage growing rapidly. As of July 2025, LCT reached USD14.1 billion, a 112% increase year-on-year. An agreement with Bank Negara Malaysia and the Bank of Thailand aims to harmonise LCT operational guidelines to support standardised operations and facilitate negotiations.