IMPLEMENTASI LOCAL CURRENCY SETTLEMENT (LCS) DALAM PENINGKATAN DIVERSIFIKASI MATA UANG LOKAL DAN UPAYA STABILISASI EKONOMI INDONESIA PADA TAHUN 2018-2024

The dollar is the most globally influential standard currency. Fluctuations in the dollar's value can impact the economies of countries dependent on foreign exchange, leading to economic stability volatility. Indonesia is one such country and has been striving to reduce this dependency through dedollarization. In 2018, alongside Malaysia and Thailand, Indonesia initiated Local Currency Settlement (LCS) cooperation to settle transactions using local currencies. This study employs a descriptive qualitative research method to explore how Indonesia implements local currency diversification and economic stabilization efforts, supported by various references through a literature review. The findings indicate that the implementation of local currency diversification and economic stabilization in Indonesia is approached from two main perspectives. The macro perspective views the government's role in reducing dollar dependency as crucial, while the micro perspective emphasizes relational efforts to strengthen the government's role. Consequently, the implementation of Local Currency Settlement (LCS) has shown continuous improvement to date.