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Indonesia Pushes Local Currency Trade with India

By Markets Desk · 2026-09-12 · 1 min read
A flat vector illustration of a stack of foreign banknotes and coins on a wooden table.
Illustration: Tradingbird

Bank Indonesia and the Reserve Bank of India agreed to expand local currency transaction frameworks during the BRICS summit in Mumbai.

Bank Indonesia and the Reserve Bank of India agreed to expand local currency transaction frameworks during the BRICS summit in Mumbai. The central banks also plan to establish a bilateral swap arrangement to reduce reliance on third-party currencies. These measures aim to lower transaction costs for trade between the two nations. The agreement was reached on the sidelines of the BRICS Finance Ministers and Central Bank Governors Meeting. Officials held the two-day session from September 9 to 10 in India. The move signals a shift toward deeper financial integration in the region.

Bilateral Payment Systems Expand

Negotiators focused on linking cross-border QR code payment systems between Indonesia and India. This technology allows consumers and businesses to settle transactions directly in local currencies. The framework removes the need for dollar-denominated intermediaries in many trade flows. Bank Indonesia Governor Destry Damayanti highlighted this as a key stability measure. She stated that concrete cooperation strengthens mutual economic resilience. The central bank views this as a practical step to implement broader BRICS commitments.

BRICS Leaders Endorse Currency Reform

Central bank chiefs from ten BRICS nations adopted a joint statement on local currency adoption. The group included Indonesia, Brazil, Russia, India, China, and South Africa. New members Egypt, the United Arab Emirates, Ethiopia, and Iran also participated. The statement calls for reforms in global financial architecture. Delegates specifically advocated for restructuring International Monetary Fund governance. The goal is to increase the voting power of developing countries. This reflects a broader push to diversify away from dominant reserve currencies.

Stability Remains Primary Objective

Bank Indonesia emphasized the need to maintain macroeconomic stability during these changes. Deputy Finance Minister Juda Agung represented the Indonesian government at the meeting. Officials warned that geopolitical tensions require careful management of new growth sources. The central bank plans to serve as a bridge builder in a fragmented global landscape. Indonesia aims to deliver inclusive outcomes that reflect national priorities. The strategy prioritizes long-term financial stability over rapid structural shifts.

Based on reporting by ANTARA News, compiled by the Tradingbird desk.

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