Local Currency Settlements for Bilateral-Trade Transactions between Domestic Banks and Banks of Partnering Countries

In order to meet the goal of accommodating the settlement of bilateral-trade transactions using local currency (Local Currency Settlements– “ LCS ”) for the purpose of maintaining the stability of the rupiah currency, [1] Bank Indonesia (“ BI ”) has issued Regulation No. 19/11/PBI/2017 on the Settlement of Bilateral Trade Transactions through the Use of Local Currency (Local Currency Settlements) via Banks (“ Regulation 19/2017 ”).Regulation 19/2017 addresses a number of comprehensive provisions which relate to the implementation of LCS and these are divided into the following sections: