BEIJING, January 31 (AsianFin)—Indonesia's central bank is strengthening the promotion of local currency transactions (LCT) with its major trading partners as part of its commitment to reducing the dependence on the U.S. dollar.

"We will keep expanding the use of the local currency. With the LCT mechanism, Indonesia's macro stability will be strongly maintained, because one of the fundamental factors, namely the stability of the rupiah exchange rate, can be more stable as it does not depend on the supply of dollars. This will also support trade and exchange rate stability in the region," Bank Indonesia Governor Perry Warjiyo said in a press conference in Jakarta, the capital of the southeastern Asian country.