India and Indonesia, both members of BRICS, have officially agreed to move away from using the US dollar for cross-border transactions instead of settling in their local currencies. This decision comes despite President Trump’s threat of imposing 100% tariffs on imports to the US. Indonesia has long sought to promote its national currency for trade, and India has now embraced this shift in economic policy.
As a result, cross-border transactions between India and Indonesia will soon be conducted in their local currencies rather than the US dollar. This move is part of a broader effort by developing nations in the BRICS to strengthen financial integration and promote trade using their currencies, to boost their GDPs. Trump has yet to respond to this policy shift, where local currencies increasingly take the lead over the US dollar.
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According to the joint statement released by the Foreign Ministries, “(Both leaders) emphasized the importance of its expeditious implementation. They expressed confidence that using local currency for bilateral transactions would further promote trade between Indonesia and India and deepen financial integration between the two economies.”
The report reveals that trade between the two countries will be settled using either the Indian rupee or the Indonesian rupiah. Indonesia, which became a BRICS member in January 2025, has quickly embraced the push against the US dollar. If Trump cannot address BRICS’ de-dollarization efforts, the US dollar could become the first victim in global markets.
