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Bank Indonesia and the Ministry of Finance of Japan Established a Framework for Cooperation to Promo

August 31st, 2020

Ministry of Finance, Japan

Joint Press Statement

Bank Indonesia and the Ministry of Finance of Japan
Established a Framework for Cooperation to Promote the Use of Local
Currencies for Settlement of Bilateral Trade and Direct Investment


   Bank Indonesia (BI) and the Ministry of Finance of Japan (JMOF) today announced the launching of the framework for cooperation to promote the use of local currencies for settlement of bilateral trade and direct investment between Japan and Indonesia. This is in accordance with the Memorandum of Cooperation between Bank Indonesia and the Ministry of Finance of Japan that was signed on December 5th, 2019.

   These initiatives are part of the continuous effort to promote a wider use of local currencies to facilitate trade and direct investment in these countries. The establishment of this framework marks a key milestone in strengthening bilateral financial cooperation between BI and JMOF. The framework includes, among others, promotion of the direct quotation between the Indonesian Rupiah and the Japanese Yen as well as the relaxation of relevant rules and regulations to enhance the usage of local currencies.

  In order to support the operationalisation of the framework, the following banks have been selected as ACCD (Appointed Cross Currency Dealer) to cooperate and to undertake the transactions of the Indonesian Rupiah and the Japanese Yen under this initiative.

<Indonesia>
 MUFG Bank, Ltd., Jakarta Branch
 PT. Bank BTPN, Tbk
 PT. Bank Central Asia (Persero), Tbk
 PT. Bank Mandiri (Persero), Tbk
 PT. Bank Mizuho Indonesia
 PT. Bank Negara Indonesia (Persero), Tbk
 PT. Bank Rakyat Indonesia (Persero), Tbk

<Japan>
 Mizuho Bank, Ltd.
 MUFG Bank, Ltd.
 PT. Bank Negara Indonesia (Persero) Tbk, Tokyo Branch
 Resona Bank, Limited
 Sumitomo Mitsui Banking Corporation

   The authorities believe that this new initiative would positively contribute to encouraging the use of local currencies for settlement of trade and direct investment between Indonesia and Japan. The framework will be effective from August 31st, 2020.


Bank Indonesia
Ministry of Finance, Japan
August 31st, 2020