This study investigates the feasibility of a fixed exchange rate policy between the Indonesian rupiah (IDR) and the Chinese yuan (CNY) using Vector Error Correction Model (VECM) estimation. Specifically, it presents 12 model simulations that illustrate the response of trade balance growth to various weighted combinations of IDR and CNY, derived using the Hodrick-Prescott filter, during the period from July 2005 to December 2016. The results indicate that close coordination between the IDR and the yuan yields a positive response both in the short run and the long run following a currency shock. Conversely, a fixed exchange rate regime that closely follows the yuan proves advantageous only in the short term but is vulnerable to currency shocks, leading to a negative trade balance in the long run. Therefore, this study recommends close coordination between the IDR and CNY but rejects the implementation of a fixed exchange rate between the two currencies.