JAKARTA – Bank Indonesia and Bank of Korea agree to use respective local currencies for bilateral transactions. The agreement was made official in the Memorandum of Understanding signed by Perry Warijyo, Governor of Bank Indonesia and Chang Yon, Governor of Bank of Korea, in the middle of the Assembly of Ministers of Finance and Central Bank Governors of ASEAN+3 in South Korea today (2/5).

In the press release quoted today (2/5), the bilateral transactions include direct investments, current account transactions, and other economic transactions. Business players in both countries will be able to utilise this facility to lower the transaction costs, as well, as exposure to currency exchange rate of South Korean Won and Indonesian Rupiah in interbank transactions.

The financial authorities of both countries said that greater local currency utilisation in bilateral transactions with promote more expansive trading activities between Indonesia and South Korea. The local currency utilisation is also said to reinforce financial market in both local currencies. (LK/ZH)