Indonesia Urges BRICS to Deepen Financial Integration Through Local Currency Transactions
Jakarta, The Gulf Observer: Bank Indonesia (BI) has called on BRICS member countries to deepen financial integration by accelerating local currency transactions (LCT) and strengthening cross-border payment connectivity to enhance economic resilience amid geopolitical tensions and increasing fragmentation in global markets.
Speaking at the 2nd BRICS Finance Ministers and Central Bank Governors Meeting (BRICS FMCBG), held on September 9–10 in Mumbai, India, BI Governor Destry Damayanti emphasized the importance of maintaining financial stability while developing new sources of economic growth in the face of rising geopolitical risks.
Damayanti said Indonesia viewed BRICS as having a strategic opportunity to turn global challenges into greater collective resilience through practical cooperation, particularly in local currency transactions and cross-border payment connectivity, while taking into account the different stages of development and national priorities of member countries.
On the sidelines of the meeting, Damayanti held talks with Reserve Bank of India Governor Sanjay Malhotra to advance financial integration between Indonesia and India.
The discussions focused on expanding the Indonesia–India Local Currency Transaction framework, establishing a Local Currency Bilateral Swap Arrangement (LCBSA), and connecting the two countries’ cross-border QR code payment systems.
According to Bank Indonesia, the bilateral discussions represented a concrete effort to translate BRICS commitments into practical economic and financial connectivity that can generate mutual benefits for participating countries.
Indonesia was also represented at the high-level meeting by Deputy Finance Minister Juda Agung.
The gathering brought together finance ministers and central bank governors from BRICS member countries, including Indonesia, Brazil, Russia, India, China, South Africa, Egypt, the United Arab Emirates, Ethiopia and Iran.
At the conclusion of the meeting, participants adopted a joint statement reaffirming their commitment to addressing global economic challenges through strategic cooperation in areas including digital transformation, artificial intelligence, cyber resilience, sustainable finance and the wider use of local currencies.
BRICS members also reiterated their support for reforms to the global financial architecture, including changes to International Monetary Fund governance aimed at strengthening the voice and representation of developing countries.
Looking ahead, Bank Indonesia stressed the importance of maintaining dialogue and strengthening bridge-building efforts amid growing fragmentation in the global economic and financial system.
Through close coordination between Bank Indonesia and the Indonesian government, the country will continue to contribute to international economic cooperation initiatives aimed at achieving inclusive and tangible outcomes while safeguarding national priorities and strengthening long-term economic and financial stability.
