Bank Indonesia (BI) Governor, Perry Warjiyo, revealed that Japan has become the second-largest country after China in conducting non-US dollar transactions with Indonesia.

“Local currency transactions between Indonesia and Japan now rank second after China,” Perry stated during the High Level Campaign LCT & Launching QRIS Cross Border Indonesia-Japan event, broadcast via BI's YouTube channel, Monday (August 25, 2025).

Data shows that the value of local currency transactions (LCT) between the two countries reached US$ 5.1 billion, equivalent to IDR 82.78 trillion (exchange rate: IDR 16,232) as of July 2025. These transactions were fully conducted through direct bilateral arrangements using rupiah and yen.

“We are utilizing direct bilateral cross-border mechanisms between rupiah and yen. So far, LCT activities remain heavily dependent on export and import activities, reflecting the close industrial ties between our two nations,” Perry explained.

Indonesia and Japan have also agreed to further develop LCT cooperation, including enabling digital transactions through QR codes—QRIS for Indonesia and JPQR for Japan.

With this cross-border QRIS service, Indonesian travelers in Japan can conveniently make payments via mobile devices without exchanging cash into yen, and the same applies for Japanese visitors in Indonesia.

“This marks a new chapter in advancing LCT and cross-border payment connectivity. Beyond that, it also includes integrating money markets and financial transactions through rupiah and yen,” Perry added.