JAKARTA: Indonesia's Finance Minister, Sri Mulyani Indrawati, has stated that the country will promote the use of local currency settlement (LCS) in cross-border commerce and investment in an effort to lessen reliance on the US dollar.

During the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting on February 17-18, Indrawati announced she will highlight the problem of the LCS scheme. "If the LCS is implemented on a larger global scale, it might build a financial safety net across countries and lessen the dangers posed by global economic and financial instability," Indrawati said at a seminar held prior of the FMCBG conference. "Transaction costs will be reduced under the LCS because traders and investors will not have to convert each country's currency into the (US) dollar," she explained.

Indonesia participates actively in a number of bilateral currency diversification projects, including the adoption of Local Currency Settlement (LCS) to improve economic stability. In addition, Bank Indonesia Governor Perry Warjiyo emphasised the importance of currency diversification in facilitating global investment and global trade among developing economies, thereby driving economic growth and reducing vulnerabilities, including the potential systemic impact of global shocks.

Finance Minister of South Korea to virtually join G-20 summit this week

Finance ministers, central bank governors from G20 to meet in Jakarta

Canadian government outlines steps to put an end to trucker protests