The governments of Indonesia and Thailand have agreed to expand the use of local currencies in bilateral trade and investment, a move designed to reduce dependence on the US dollar and strengthen economic ties between the two Southeast Asian nations.
The agreement, reported by state-affiliated news agency Antara News, also includes commitments to deepen cooperation in the digital economy sector.
By settling more transactions in rupiah and baht, the two countries aim to lower transaction costs and mitigate foreign exchange risks for businesses operating across borders.
This development comes as Bank Indonesia has recently raised its benchmark interest rate in an unexpected move to halt a sharp depreciation of the rupiah against the US dollar.
The central bank’s action signals mounting concern over capital outflows and external pressures, making alternative settlement mechanisms increasingly relevant for regional trade stability.
Thailand’s growing role in the global technology supply chain adds weight to the partnership.