Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) today announced the operationalisation of a framework for the settlement of bilateral transactions between Indonesia and Singapore in their respective local currencies (LCT Framework). Today’s announcement follows the signing of a Memorandum of Understanding (MoU) in August 2022 and agreement on the Operational Guidelines for the framework in April 2026 by both central banks.
2 The LCT Framework will support bilateral trade and contribute to ASEAN financial integration efforts by promoting the wider use of local currencies in intra-ASEAN transactions. Under the framework, Appointed Cross Currency Dealers (ACCDs) on each side will facilitate the settlement of current account transactions, transactions for direct investment, and cross-border payments in Indonesian Rupiah and Singapore Dollar. The framework is expected to provide businesses and other users with greater flexibility in conducting transactions in the local currency pair, while reducing their exchange rate risks and costs. Key features of the framework include the promotion of direct quotations between the Indonesian Rupiah and Singapore Dollar, as well as implementation of relevant rules and regulations to enhance the usage of local currencies.
3 BI and MAS have appointed the following banks as ACCDs in Indonesia and Singapore to cooperate and undertake the operationalisation of the Rupiah-Singapore Dollar LCT Framework.
Indonesian ACCD Banks:
- PT Bank Central Asia Tbk
- PT Bank CIMB Niaga Tbk
- PT Bank DBS Indonesia
- PT Bank Mandiri (Persero) Tbk
- PT Bank Maybank Indonesia Tbk
- PT Bank Negara Indonesia Tbk
- PT Bank OCBC NISP Tbk
- PT Bank Pembangunan Daerah Jawa Timur Tbk
- PT Bank UOB Indonesia
Singaporean ACCD Banks:
- DBS Bank Ltd.
- Oversea-Chinese Banking Corporation Limited
- United Overseas Bank Limited
