The de-dollarization efforts that began earlier this year are gaining momentum among developing countries around the world. The BRICS alliance is not the only group of nations seeking to reduce their reliance on the US dollar. Indonesia, inspired by the de-dollarization efforts of BRICS, is now looking to move away from the US dollar for global trade.
Indonesia’s President Joko Widodo has taken steps to promote their local currency, the Indonesian Rupiah. He has directed the creation of a National Task Force to explore ways to increase the use of local currency transactions (LCT) among partner countries. The country’s Central Bank aims to boost payments in Rupiah for bilateral transactions. Indonesia’s move towards de-dollarization is part of a broader trend among developing countries that are prioritizing their native economies by placing local currencies ahead of the US dollar. Countries such as India, China, Russia, Argentina, Pakistan, and the UAE have already begun using local currencies for trade. With the establishment of the National Task Force, Indonesia joins this growing initiative. The shift away from the US dollar in cross-border transactions in Indonesia could potentially reduce demand for the greenback and contribute to stabilizing the Rupiah and Indonesia’s domestic economy. This move may create favorable conditions for businesses to thrive.
