<![CDATA[This research aims to analyze the implementation of financial cooperation from Indonesia-Japan trade through Local Currency Settlement in 2020-2023. This research uses descriptive qualitative method with primary and secondary data sources. Data were collected through interviews and literature studies. The author conducted interviews with Bank Indonesia and KADIN Indonesia. Data analysis techniques were done through data reduction, presentation, and conclusion drawing. Based on the research results, Local Currency Settlement cooperation between Indonesia and Japan shows a positive trend in both transaction volume and number of customers. At the beginning of its implementation in 2020, the transaction volume reached $30 million, which is a significant number considering that it was only implemented in October. The figure continued to increase in the following years, showing success in diversifying currencies for trade transaction settlement. However, the implementation still faces several challenges, such as low awareness of the benefits of Local Currency settlement, less liquid currency markets, limited financial market infrastructure, and the non-internationalization of local currency policies. Several strategies were carried out to overcome these challenges, such as providing customers incentives and conducting intensive and targeted educational campaigns. The conclusion of this study is that the Local Currency Settlement cooperation between Indonesia and Japan has successfully strengthened bilateral trade relations by reducing dependence on the US dollar, although challenges are still faced. Continued efforts to raise awareness, improve infrastructure, and encourage further collaboration between the two countries are needed to optimize the benefits of Local Currency Settlement in the future. Abstrak Penelitian ini bertujuan untuk menganalisis implementasi kerja sama keuangan dari perdagangan Indonesia-Jepang melalui Local Currency Settlement pada tahun 2020-2023. Penelitian ini menggunakan metode kualitatif deskriptif dengan sumber data primer dan sekunder. Data dikumpulkan melalui wawancara dan studi literatur. Penulis melakukan wawancara dengan Bank Indonesia dan KADIN Indonesia. Teknik analisis data dilakukan melalui reduksi data, penyajian data, dan pengambilan kesimpulan. Berdasarkan dari hasil penelitian, kerja sama Local Currency Settlement antara Indonesia dan Jepang menunjukkan tren positif baik dalam volume transaksi maupun jumlah nasabah. Pada awal pelaksanaannya di tahun 2020, volume transaksi mencapai $30 juta yang merupakan angka yang cukup signifikan mengingat baru dilaksanakan di bulan Oktober. Angka tersebut terus meningkat di tahun-tahun berikutnya, menunjukkan keberhasilan dalam diversifikasi mata uang untuk penyelesaian transaksi perdagangan. Namun, pelaksanaannya masih menghadapi beberapa tantangan seperti rendahnya kesadaran akan manfaat Local Currency settlement, pasar mata uang yang kurang likuid, keterbatasan infrastruktur pasar keuangan, dan adanya kebijakan non-internasionalisasi mata uang lokal. Untuk mengatasi tantangan tersebut, dilakukan beberapa strategi seperti pemberian insentif kepada nasabah dan mengadakan kampanye edukasi intensif dan targeted. Simpulan dari penelitian ini adalah kerja sama Local Currency Settlement antara Indonesia dan Jepang telah berhasil memperkuat hubungan perdagangan bilateral melalui pengurangan ketergantungan pada dolar AS, meski masih ada tantangan yang dihadapi. Diperlukan upaya terus-menerus dalam meningkatkan kesadaran, perbaikan infrastruktur, serta dorongan kolaborasi lebih lanjut antara kedua negara untuk mengoptimalkan manfaat Local Currency Settlement di masa mendatang. Kata Kunci: LCS, Kerja Sama Keuangan, Perdagangan, Rupiah, Yen]]>
