12 designated banks will facilitate eligible local-currency transactions between both countries.
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have operationalised a local currency transaction (LCT) framework for bilateral transactions between Indonesia and Singapore, allowing eligible customers to use rupiah and Singapore dollars.
To implement the framework, the two central banks appointed 12 Appointed Cross Currency Dealers (ACCDs) to facilitate qualifying transactions. The arrangement aims to expand local-currency use while reducing exchange-rate risks and transaction costs.
On the Indonesian side, eligible customers include individuals, financial institutions, corporations, payment-system infrastructure providers and other parties designated by BI. These customers can use the framework for qualifying transactions supported by underlying economic activities with Singaporean customers, including trade, income, direct investment and financing.
BI Executive Director of Communications Ramdan Denny Prakoso said, “This is expected to provide greater flexibility for business actors and other users in transacting using local currency, while reducing exchange rate risks and transaction costs.”
The framework builds on a memorandum of understanding that BI and MAS signed in August 2022 and operational guidelines they agreed in April 2026. BI Regulation No. 25 of 2026 came into force on August 14, providing the regulatory basis for the arrangement.
Read More: Bank Indonesia Sets New Rules for Rupiah-Singapore Dollar Transactions
Appointed ACCD Banks
BI and MAS appointed nine Indonesian banks and three Singaporean banks as ACCDs.
Indonesia
- Bank Central Asia
- CIMB Niaga
- DBS Indonesia
- Bank Mandiri
- Maybank Indonesia
- Bank Negara Indonesia
- OCBC NISP
- Bank Pembangunan Daerah Jawa Timur and UOB Indonesia.
Singapore
- DBS Bank
- Oversea-Chinese Banking Corporation
- United Overseas Bank
Through these ACCDs, eligible customers can access local-currency transfers and related services. The ACCDs can facilitate current-account transactions, direct investment transactions and cross-border payments in rupiah and Singapore dollars.
On the Indonesian side, the framework also covers foreign-exchange transactions including spot, forward, swap, cross-currency swap and domestic non-deliverable forward transactions.
The framework also promotes direct rupiah-Singapore dollar quotations and relevant regulatory measures to encourage local-currency use. It will support bilateral trade and contribute to ASEAN financial integration through wider use of local currencies in intra-ASEAN transactions.
Source: Monetary Authority of Singapore
