Indonesia and China have agreed to strengthen cooperation on the use of local currencies for trade and investment, aiming to reduce reliance on the US dollar. The agreement, reached between Bank Indonesia (BI) and the People’s Bank of China (PBOC), focuses on establishing frameworks for cross-border payment systems utilizing the Rupiah and Yuan. This move intends to facilitate more direct economic transactions between the two countries and enhance financial stability. Details of the specific mechanisms for these payments are still being developed, but the initiative signals a growing trend towards de-dollarization in international trade. Both central banks emphasized the importance of this collaboration for fostering closer economic partnerships. The cooperation builds upon existing bilateral agreements and reflects a commitment to strengthening financial resilience within the region. Further announcements regarding implementation are expected in the coming months.