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April 15, 2025 | 10:24 am
TEMPO.CO, Jakarta - Deputy Minister of Industry and Trade of the Russian Federation, Alexey Gruzdev, proposed using local currency in trade between Russia and Indonesia. According to him, both countries can start considering using local currency.
"We see a lot of prospects for local currency because this ensures stability," said Gruzdev when attending the Russia-Indonesia Business Forum at the Raffles Hotel in Jakarta on Monday, April 14, 2025.
Gruzdev also views local currency as an alternative for payment in trade between the countries. He emphasized that this step could be an option to replace the dominance of the US dollar and the euro.
Furthermore, Gruzdev revealed that Russia had successfully achieved 90 percent of bilateral trade using local currency. He hopes that his country and Indonesia can follow suit.
To realize this dream, Gruzdev hopes that banks in both countries can actively support using local currency for bilateral trade.
Lately, several countries have formed alliances to build an economic power axis against the United States.
The Alliance is believed to have been inspired by the research of Jim O'Neill, an economist from Goldman Sachs, in a study entitled Building Better Global Economic BRICS in 2001.
He identified the great potential of four developing countries, namely Brazil, Russia, India, and China, which could dominate the world economy if their growth continues.
This axis is materialized in the form of BRICS, which consists of Brazil, Russia, India, China, and South Africa. Recently, several new members have emerged, including Indonesia. The alliance takes a stand in international trade by striving for de-dollarization.
Dedollarization is a complex process triggered by various factors, including geopolitics, economic policies, and regional initiatives. Although significant efforts have been made to reduce dependence on the US dollar, challenges remain as the dollar's dominance in the global market remains strong.
These developments will continue to be monitored in line with changes in the dynamics of the world economy and politics in the future.
Dedollarization, or the reduction of dependence on the US dollar in international transactions, is increasingly gaining global attention. Various factors drive this process, including geopolitical dynamics, economic policies, and bilateral agreements between countries.
Myesha Fatina Rachman also contributed to the writing of this article.
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