Use local REST API inside API proxy without exposing to the internet?

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I have developed one rest API which is running in my local server, can we use this API while creating API proxy without exposing to the internet?

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Apigee Edge needs to be able to connect to the target of your proxy.

Thanks Carlos, as per your comments I need to published application in the internet then only APIGEE API proxy will be able to interact with the target endpoint. But I was trying to identify is there any way for APIGEE API proxy to interact with my local application without publishing in internet?

Nope. Apigee Edge needs to be able to connect to the target of your proxy. Apigee Edge runs on the internet, and accesses the targets via the public network.

It's possible for you to use mechanisms like 2-way SSL to mutually authenticate the connection between Apigee Edge and your target system. But still, the system needs to be accessible from the public internet.