Indonesia and China Inked a Deal to Promote the Use of the Yuan and Rupiah. the Political and Economic Implications Are Huge

News Snapshot:

— By Muhammad Zulfikar Rakhmat , Universitas Islam Indonesia (UII) Last month, China and Indonesia signed an agreement to promote the use of local currencies — Chinese Yuan (RMB) and Indonesian Rupiah (Rp) — in trade and investment transactions between the two countries. Yuan has actually penetrated Indonesia since China’s massive infrastructure project, the Belt and Road Initiatives (BRI), began in 2012. It is reported that currently, around 10% of Indonesia’s global trade uses Yuan. In 2018, the value of Yuan reached 201.2 billion RMB (US$29 billion) or about 63% of the entire Indonesian market. The agreement marks a key...