Indonesia Supports BRICS' Common Currency Initiative, Experts Say
© Wu Hong
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MOSCOW (Sputnik) - Indonesia's financial community supports the common currency initiative proposed by BRICS, which would replace the US dollar as the mutual exchange currency, experts told Sputnik on Wednesday.
"BRICS' new initiative resonates with the progressive part of the Indonesian financial community, with those who strive for dedollarization and digitalization. As you know, we have also been looking into alternative currencies to substitute US dollar and have started transitioning away from Visa and Mastercard to develop our own paying platforms. We do not want international payment systems to be used to sanction us," Dodit Probojakti, a board member of the Credit Card Association of Indonesia (AKKI), told Sputnik.
Indonesia intends to closely study BRICS' experience in introducing the common currency, although is does not consider the initiative a sufficient reason to join the union, he added, elaborating that despite the fact that there are groups in Indonesia that would welcome such a move, it is a major geopolitical issue, and the support of the financial sector alone would not be not enough.
31 March 2023, 18:09 GMT
Financial market observer Ibrahim Asjuangbi told Sputnik that he sees "great economic opportunities" in BRICS.
"Many people believe that the BRICS countries are only interested in politics and want to stand against the West, but the main fight is going on in the economic domain, creating common institutions, and not in geopolitics. Russia and China have ended their dependency on Visa and Mastercard, they use their own currency. We have pulled the plug on them too, and this is what brings Indonesia with BRICS together. Besides, Russia has suggested that BRICS should use rare-earth metals as backing of the new currency, and this cannot but attract Indonesia's attention, as the world's largest nickel producer," he said.
Asjuangbi added that in the future, Indonesia could abandon the US dollar altogether, since this measure is currently being discussed by the government.
On March 30, Russian State Duma Deputy Chairman Alexander Babakov said that the BRICS countries were working on creating a new form of currency and might present ideas on its development at the organization's upcoming summit in South Africa. The currency could be secured not just by gold, but also by other groups of products, rare-earth elements or land, he added.
On March 20, Bank Indonesia said that it would launch a domestic credit card to replace Visa and Mastercard, which would help maintain economic stability in the country and would charge lower payment commissions.
