Indonesia has called on industrial players to increase the use of local currency transactions for raw material imports in an effort to reduce dependence on the U.S. dollar and limit exposure to exchange-rate volatility, Xinhua reported Tuesday.
The Industry Ministry said about 24% of raw materials used by domestic industries are still imported, leaving manufacturers vulnerable to fluctuations in the rupiah. Ministry spokesperson Febri Arief said wider use of local currency settlements would help ease pressure on businesses caused by the weaker rupiah, according to the report.
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