Avoiding use of the US dollar, Indonesian companies recently signed countertrade deals with Philippine business partners worth $350 million. Jakarta encourages cross-border barter as a way to tackle exchange rate risks, but the measure will do little to help the ailing rupiah, experts note.
Workers load and unload containers at Tanjung Priok Port in Jakarta on Feb. 4, 2026. (AFP/Bay Ismoyo)
The government is encouraging cross-border barter to reduce currency risks as local companies have struck deals worth US$350 million with Philippine business partners that avoid use of the United States dollar.Countertrade, the exchange of goods for goods, could help businesses hedge against sharp exchange-rate swings that have rattled regional currencies by reducing reliance on dollar settlements during market turbulence, Trade Minister Budi Santoso said on Monday.
The push comes as the rupiah has weakened about 8 percent this year to become Asia’s worst-performing currency in 2026 after sliding to record lows amid rising oil prices and a stronger US dollar.
The rupiah fell to a record low near Rp 18,200 before recovering slightly after Bank Indonesia (BI) unexpectedly raised its benchmark interest rate by 25 basis points (bps) to 5.5 percent on Tuesday. The currency was changing hands around Rp 17,900 on Wednesday afternoon.
