On 31 August 2026, Bank Indonesia (BI) and the Monetary Authority of Singapore (“MAS“) announced the operationalisation of a framework for the settlement of bilateral transactions between Indonesia and Singapore in Indonesian Rupiah (“IDR“) and Singapore Dollar (“SGD“) (“LCT Framework“).
The LCT Framework supports bilateral trade and ASEAN financial integration by promoting wider use of local currencies in intra-ASEAN transactions. Under the LCT Framework, Appointed Cross Currency Dealers (ACCDs) designated by each central bank will facilitate the settlement of current account transactions, direct investment transactions, and cross-border payments in the local currency pair. Key features include the promotion of direct IDR-SGD quotations and the implementation of relevant rules and regulations to enhance the usage of local currencies.
This development follows a Memorandum of Understanding signed in August 2022 and the agreement on the Operational Guidelines in April 2026.
Click on the following link for more information:
- MAS Media Release titled “Bank Indonesia and the Monetary Authority of Singapore Operationalise Local Currency Transaction Framework for Bilateral Trade Transactions” (available on the MAS website at www.mas.gov.sg)
If you have any queries on the above, please reach out to our Team set out on this page.
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