JAKARTA, July 30 (Xinhua) -- Indonesia is seeking to expand the use of local currency transactions (LCT) to boost cost efficiency and enhance financial resilience, a senior official said on Wednesday.
Ferry Irawan, deputy for coordination of management and development of state-owned enterprises at the Coordinating Ministry for Economic Affairs, said the broader implementation of LCT could involve state-owned enterprises (SOEs), ministries, and other government institutions.
"SOEs play a strategic role in Indonesia's international transactions. Using local currencies can improve cost efficiency, support exchange rate stability, and strengthen corporate financial resilience," said Irawan, who also chairs the National Local Currency Transaction Task Force.
However, he noted that only a limited number of SOEs are currently using local currencies in their transactions.
To address this, Irawan urged technical ministries to actively encourage SOEs to adopt LCT in foreign trade, investment, and transactions with partner countries.
"We need to make LCT a part of our corporate strategy, not just a technical tool," he noted. ■
