Jakarta, Aug. 25 -- Bank Indonesia (BI) is seeking to expand local currency transactions (LCT) with Japan beyond trade to include financial market activities such as purchases of Indonesian government bonds.

"We want to move further, connecting [people in both countries] to the money market and financial transactions," BI Governor Perry Warjiyo said during the High Level Campaign on LCT & Launching of Indonesia-Japan Cross Border QRIS in Jakarta on Monday.

The expansion of the LCT framework is expected to broaden market participation, improve transaction efficiency, reduce exchange rate volatility, strengthen financial resilience, and lower costs.

Warjiyo urged financial industry players to support this innovation, envisioning yen acco...