Bank of China (Hong Kong) Limited Jakarta Branch ("Jakarta Branch") held the "Potential for Cross border RMB and Local Currency Trading Cooperation between China and Indonesia under the LCT Framework" forum in Semarang and Medan, Indonesia on February 4th and February 6th, respectively. As part of the "Bank of China Financial Services Entering the Park" series of measures, this event attracted nearly 300 guests from the Bank of Indonesia, local Chinese communities, business associations, and representatives of major enterprises in both regions. The Chinese Consul General in Medan, Huang He, warmly congratulates the convening of the forum. He pointed out that under the strategic guidance of the leaders of both countries, the bilateral relationship between China and Indonesia is currently at its best in history. China has been Indonesia's largest trading partner for 12 consecutive years and ranked among the top three investment sources for Indonesia for 9 consecutive years. The cross-border RMB and local currency settlement mechanism between China and Indonesia is a natural result of the comprehensive strategic partnership between the two countries. It has important practical significance for Indonesia to achieve diversified foreign exchange reserve structure, reduce exchange rate risks, obtain more stable settlement channels, enhance local currency stability and macroeconomic resilience. He instructed the Jakarta branch to continue to fully utilize this mechanism, provide higher quality financial services, and make new contributions to the further development of financial and economic cooperation between China and Indonesia. Rudi Brando Hutabarat, head of the Subei Provincial Representative Office of the Bank of Indonesia, stated that Indonesia has established local currency settlement (LCT) cooperation mechanisms with multiple countries, including China, to support bilateral trade and investment facilitation. By 2025, the settlement scale of Indonesian local currency will increase to 25.66 billion US dollars, with an average of 7568 monthly users. Among them, the growth of Indonesia China local currency settlement is particularly significant, increasing significantly from 4.9 billion US dollars in 2024 to 13.19 billion US dollars in 2025, fully reflecting the recognition of local currency settlement mechanisms by enterprises. Since its implementation in 2018, this mechanism has played an important role in diversifying exchange rate risks, enhancing the resilience of the financial system, and promoting bilateral trade and investment. At present, the application of local currency settlement is still mainly concentrated in Java Island, and there is great room for expansion in areas such as Sumatra in the future. As an important economic and trade hub in Sumatra, Medan will become an important platform for deepening cooperation in local currency settlement between China and Indonesia, injecting new momentum into the sustained development of economic and trade relations between the two countries. Nur Nugroho, the head of the Central Java Provincial Representative Office of the Bank of Indonesia, stated in his speech that the Bank of Indonesia attaches great importance to cooperation with Chinese financial institutions in areas such as local currency settlement, cross-border payments, and financial infrastructure interconnection, and actively promotes the continuous improvement of the Indonesian rupiah RMB local currency settlement mechanism. The practice of bilateral currency settlement between China and Indonesia has proven that the LCT mechanism can effectively reduce transaction costs, improve transaction efficiency, promote international trade and investment activities, and further facilitate cross-border transactions and financial integration, thereby promoting more robust, sustainable, and inclusive economic growth. The enormous potential of local currency trading is being unleashed at the local level, becoming an important engine driving Indonesia's national economy. At present, the local currency trading ecosystem is increasingly becoming inclusive, covering small and medium-sized enterprises as well as the retail sector. Sun Shangbin, President of the Indonesian Chinese Chamber of Commerce and President of the Jakarta Branch, stated that Indonesia is an important direction for China's neighboring cooperation. Under the framework of the "Two Countries, Two Parks" cooperation between China and Indonesia, the industrial agglomeration effect in Semarang and surrounding areas is accelerating, and the demand for financial support from manufacturing and supporting industries continues to grow. Medan, located in Sumatra Province, has a solid industrial foundation, coupled with supporting facilities such as port logistics, warehousing and transportation, power and infrastructure construction. It is an important resource-based and outward oriented economic region in Indonesia, and also one of the main destinations for Chinese enterprises to go abroad to Indonesia. The Indonesian Chinese Chamber of Commerce and its Jakarta branch will fully leverage the platform and resource integration effects to build a comprehensive financial service system for Chinese enterprises going global, and help deepen and implement economic and trade cooperation and financial connectivity between China and Indonesia. The senior strategy expert of Bank of China Hong Kong should focus on the theme of "The Development of Cross border RMB Use and Bilateral Local Currency Settlement (LCT) Mechanism between China and Indonesia", and give on-site presentations on the optimization and development prospects of LCT mechanism, the expansion of RMB use scenarios in key industries in Indonesia, and the potential opportunities brought to enterprises by the deepening of RMB settlement cooperation in bilateral trade. (New Society)