Depth report

　　

The impact of the US debt crisis has further exposed the harm of the hegemony of the dollar, and many countries in the world have begun to seek to reduce their dependence on the dollar. Indonesian economic experts recently said in an interview with a reporter from the Central Radio and Television Group that dependence on a single currency is not a long-term policy, and diversified medium - and long-term monetary policies should be formulated to maintain national economic security.

Andriy Asmoro, chief economist at Bank Mandiri, a large Indonesian bank, believes de-dollarization is imperative.

Andriy ASMORO, CHIEF economist at Bank Mandiri Indonesia: In a sense, it is understandable and reasonable for every country to reduce its dependence on the single currency. This is strategic and a medium - to long-term goal, not a short-term one, and many countries must do it sooner rather than later.

Asmolo said that de-dollarization can reduce the impact of currency depreciation on the domestic economy, while increasing the international liquidity of the national currency.

Andriy Asmoro, chief economist at Bank Mandiri Indonesia: I think it has two advantages, one is to reduce or reduce the impact of currency depreciation on the national government, the business sector. The second is to strengthen the use of domestic currencies in transactions with other countries, whether bilateral or multilateral, not just one currency.

On May 8, 2023, Indonesia's central bank officially launched a domestic credit card that uses Indonesia's Domestic Payment System (GPN), which could replace VISA and mastercard, minimizing the role of foreign payment service providers and seeking more autonomy over Indonesia's payment infrastructure. The cards can be used throughout Indonesia, but are still being tested internationally.

Ecko Listiyanto, deputy director and economic expert of the Indonesian Institute of Economic and Financial Development, said that promoting local currency settlement is an important step in the process of de-dollarization.

Ecko Listiyanto, Deputy director of the Indonesian Institute for Economic and Financial Development: I think it is a good policy and a good long-term strategy to wean our country off the US dollar and promote local currency settlement. In the short term, we want to try to build bilateral relationships with other countries, like Indonesia, Malaysia, Thailand and others, who are also trying to reduce their dependence on the dollar.

In addition, Lisyanto also believes that Indonesia should diversify its reserve currencies, and the renminbi is one of the options.

Ecko ListiyanTO, Deputy Director of the Indonesian Institute for Economic and Financial Development: I think it is also an option for Indonesia to formulate policies to diversify our international reserves and try to diversify our reserve currencies, especially using the yuan.