The rupiah should have a stronger value against the US dollar since Indonesia frequently records a surplus in its trade with the US, Abdullah added.
The promotion of the use of local currencies in economic and financial activities in Southeast Asia will be particularly beneficial for the economies of developing countries in the region, according to Eko Listyanto, deputy director of the Institute for Development of Economics and Finance (Indef).
Meanwhile, Indonesian Minister of Finance, Sri Mulyani Indrawati, described the initiative to promote the use of local currencies in the region as a pertinent policy for countries to survive the uncertainties in the current global economic climate.
LCT cooperation, she said, can connect services among ASEAN countries and bolster the economic and financial resilience of the region.
At a press conference on the results of the 42nd ASEAN Summit, held in Labuan Bajo, East Nusa Tenggara, in May of this year, President Joko Widodo said that efforts aimed at intensifying the implementation of LCT align with ASEAN's resolve to make Southeast Asia a resilient and independent region.
Among the results of the summit was the ASEAN Leaders' Declaration on Advancing Regional Payment Connectivity Promoting Local Currency Transactions.
Indonesia is seeking to optimize the momentum of its 2023 ASEAN chairmanship to continue encouraging the integration of ASEAN countries in the economic sector, including pushing for the expansion and implementation of LCT cooperation.
It is expected that promoting the use of local currencies in regional transactions will help ASEAN countries become economically independent amid global challenges.
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Translator: Imamatul S, Tegar Nurfitra
Editor: Anton Santoso
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