BRICS CCI and The Embassy of the Republic of Indonesia in New Delhi organized a Roundtable Discussion (RTD) on February 12, 2026, titled “Leveraging Local Currency Transaction Cooperation between India and Indonesia in Developing Cross-Border Payments: Potential and Challenges.” The discussion brought together representatives from Bank Indonesia, the Reserve Bank of India (RBI), banking institutions, business actors, business associations, and academics from both countries.
Local Currency Transaction (LCT) cooperation between India and Indonesia began with an MoU signed between Bank Indonesia and the RBI in March 2024. The initiative aims to deepen economic relations and enhance the efficiency of cross-border payments between the two nations.
Participants highlighted the potential of LCT for bilateral economic cooperation and cross-border trade. The discussion covered:
- The role of local currency transactions in simplifying cross-border payments
- Benefits for businesses trading between India and Indonesia
- Challenges in implementation and adoption
- The need for coordinated frameworks between central banks and financial institutions
The roundtable produced the following recommendations:
- Accelerate development of LCT technical guidelines
- Initiate pilot projects with selected banks
- Increase outreach to business actors
- Simplify documentation requirements
- Develop hedging products for currency risk management
- Establish grievance mechanisms for implementation issues
This development is relevant for those engaged in India-Indonesia trade, as local currency transactions can reduce transaction costs and streamline cross-border payments.