August 5th, 2021
Bank Indonesia
The Ministry of Finance of Japan
Joint Press Release
The Expansion of the Local Currency Settlement Framework between
Bank Indonesia and the Ministry of Finance of Japan
Bank Indonesia and the Ministry of Finance, Japan, today announced the strengthening of the Japanese Yen and Indonesian Rupiah settlement framework. The framework was first launched on August 31st, 2020, in accordance with the Memorandum of Understanding between the Ministry of Finance of Japan and Bank Indonesia that was signed on December 5th, 2019. The strengthened framework, which will be effective from August 5th, 2021, is part of the continuous effort to encourage trade and investment as well as strengthen macroeconomic stability by promoting more extensive use of local currencies for the settlement of trade and direct investment between Indonesia and Japan.
The framework was expanded to include further relaxation on relevant foreign exchange policies, such as expansion on hedging instruments and greater flexibility for entities in Japan using IDR as well as customers in both countries. Followings are the outline of the expansion of the framework;
- Add cross-currency swap and domestic-NDF as a hedging instrument
- Increase the threshold of the transaction which does not require underlying documents to USD 500,000 or local currency equivalent per transaction (which was previously set at USD25,000)
- Expand the eligibility criteria for hedging to also include direct investment transactions with anticipatory basis documents and extend the hedging tenor based on the anticipatory basis document to more than one year
The following banks act as an ACCD (Appointed Cross Currency Dealer) to cooperate and undertake the Indonesian Rupiah and the Japanese Yen transactions 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
Bank Indonesia
The Ministry of Finance of Japan
August 5th, 2021
For media enquiries, please contact:
Bank Indonesia Communication Department
Tel: (62 21) 131
e-mail: bicara@bi.go.id
The Ministry of Finance of Japan
International Bureau Regional Financial Cooperation Division
Tel: (81) 3 3581 2886
Fax: (81) 3 5251 2197