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[BUSINESS] · Indonesia, Singapore · 37 sources

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Indonesia and Singapore launch local currency trade mechanism

Indonesia and Singapore have officially operationalized a Local Currency Transaction (LCT) framework to facilitate bilateral trade using the Rupiah and Singapore Dollar. This initiative, led by Bank Indonesia and the Monetary Authority of Singapore, aims to reduce exchange rate risks, lower transaction costs, and decrease reliance on the US Dollar. Under this mechanism, designated banks in both nations will provide direct exchange rate quotations. Singapore has appointed DBS, OCBC, and UOB to the framework, while Indonesia has appointed nine banks, including Bank Central Asia, Bank Mandiri, and Bank Negara Indonesia, to act as Appointed Cross Currency Dealers.

In separate financial news, Bank Rakyat Indonesia (BRI) reported strong performance for the second quarter of 2026. The bank's net profit reached Rp31.2 trillion, representing a 17.5 percent year-on-year increase. BRI continues to focus on the MSME (UMKM) sector, which accounts for 75.1 percent of its total credit and financing portfolio, totaling Rp1,235.4 trillion. The bank's total credit and financing reached Rp1,646 trillion, reflecting a 16.2 percent year-on-year growth.

Entities

Anindya N. Bakrie · BRI Group · Bank Indonesia · Bank Rakyat Indonesia · Ety Yuniarti · Hery Gunardi · Himbara · Indonesia · Jakarta · Monetary Authority of Singapore · PT Adaro Andalan Indonesia Tbk · PT Bakrie & Brothers Tbk

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11 days ago
10 days ago