Indonesia’s central bank has publicly opposed the use of the US dollar in import-export transactions, calling for the use instead of local currencies in international payments, to reduce reliance on the greenback, according to a report on news portal Tempo.co on Friday.

According to Nugroho Joko Prastowo, head of Bank Indonesia’s Solo Representative Office, Indonesia conducts its international trade transactions in foreign currencies, mostly the dollar.

He said, “90% of export-import settlements are in US dollars, when in fact the value of Indonesia’s direct exports to the US is only 10%, and the value of US imports is only 5%,” speaking after opening a session on ‘Utilizing Local Currency Settlement (LCS) to Increase Export-Import Efficiency of the Greater Solo Region’.

He noted that conducting transactions in foreign currencies requires the payment of conversion costs, and when the trade is in dollars, “the conversion fee is doubled.” He proposed that a new system of bilateral payments in local currencies could be a solution.

He noted that so far, four countries have agreed to use local currencies with Indonesia, including China, Japan, Thailand, and Malasia.

He added, “Singapore has been plotted, although it has not been fully implemented, and soon the Philippines. Currently, the implementation of LCS with Saudi Arabia is also being explored.”

The G20 international forum, drawing together 19 countries and the EU, will be hosted by Indonesia November 15-16 on the Island of Bali. Presently Indonesia holds the Presidency of the group of leading economies.