Kamis, April 11, 2019

Updates on the Implementation of the Local Currency Settlement Policy for Bilateral-Trade Transactions

In 2017, Bank Indonesia (“BI”) issued Regulation of BI No. 19/11/PBI/2017 with the goal of accommodating the settlement of bilateral-trade transactions through the use of local currency, which became known as the local currency settlement (“LCS”) policy.
In general, the implementation of the LCS has been aimed at reducing dependency on the US dollar during the settlement of bilateral-trade transactions, thus maintaining the stability of local currencies.
Since the introduction of the LCS policy, BI has succeeded in entering into agreements with the central banks of Malaysia, Thailand and, most recently, the Philippines as regards the policy’s implementation.
BI is currently making approaches to Vietnam, Cambodia and Laos as regards establishing similar cooperation, while the remaining ASEAN countries are expected to sign up by the end of the year.
For more on this story, see Hukumonline: “Mengenal Kebijakan Local Currency Settlement dalam Transaksi Perdagangan Bilateral”.

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*Syarat dan ketentuan berlaku

In 2017, Bank Indonesia (“BI”) issued Regulation of BI No. 19/11/PBI/2017 with the goal of accommodating the settlement of bilateral-trade transactions through the use of local currency, which became known as the local currency settlement (“LCS”) policy.
In general, the implementation of the LCS has been aimed at reducing dependency on the US dollar during the settlement of bilateral-trade transactions, thus maintaining the stability of local currencies.
Since the introduction of the LCS policy, BI has succeeded in entering into agreements with the central banks of Malaysia, Thailand and, most recently, the Philippines as regards the policy’s implementation.
BI is currently making approaches to Vietnam, Cambodia and Laos as regards establishing similar cooperation, while the remaining ASEAN countries are expected to sign up by the end of the year.
For more on this story, see Hukumonline: “Mengenal Kebijakan Local Currency Settlement dalam Transaksi Perdagangan Bilateral”.

......

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