JAKARTA – Bank Indonesia (BI) and the Ministry of Finance of Japan extend the cooperation regarding the transaction with local currency settlements (LCS) between these two countries in rupiah (IDR) and yen (JPY). This cooperation had been initially implemented in August 2020.
As quoted from a press release today (6/8), the said financial bilateral cooperation would focus on the hedging instrument expansion, the exercise of hedging based on trading projection, investment, and increasing the flexibility in transferring rupiah accounts in Japan. It also involves extending the threshold for the transaction without underlying documents to USD 500,000 per transaction.
This bilateral collaboration is envisioned to help improve trading and investment while strengthening the macroeconomic stability by using local currencies in Indonesia-Japan trading activities. Additionally, solidifying this bilateral relationship is included in the Memorandum of Understanding (MoU) signed by BI and the Japanese Finance Ministry on December 5, 2019. (LK/ZH)