Indonesia's aggressive de-dollarization push is delivering staggering results, with local currency payments exploding by 163% year-over-year as the nation slashes dependence on the US dollar in cross-border transactions. Under the Local Currency Transaction (LCT) framework, payments surged to $8.45 billion in January-February 2026—a dramatic leap from $3.21 billion during the same period last year—signaling a structural shift where developing economies are bolstering sovereign currencies and rejecting foreign monetary dominance. The movement, now engaging 14,621 institutional users, promises to strengthen Indonesia's GDP and fuel domestic consumerism while reshaping global currency flows.

Indonesia’s Planned De-Dollarization Initiative Experiences a Surge in Usage

Ferry Irawan, deputy for coordination of state-owned enterprise management and development at the Coordinating Ministry for Economic Affairs, said in a statement that LTC is growing in all key financial sectors across Indonesia.he said. Indonesia launched LTC to promote the rupiah and aid de-dollarization in 2018.

The efforts are now paying off, and the payments in local currencies are moving to six countries. They include trading partners Malaysia, Thailand, Japan, China, South Korea, and the United Arab Emirates (UAE). This strengthens bilateral arrangements and fosters regional commitments in trade and finance. Trading partners are operating outside the dollar zone, giving way for de-dollarization to gain a grip.

De-dollarization is being promoted through the LTC, particularly in export-import activities.Ferry said.