JAKARTA – Bank Indonesia (BI) and Japan’s central bank, the Bank of Japan, renewed their Bilateral Swap Arrangement (BSA). This bilateral contract manages the foreign currency exchange swap between Rupiah (IDR), US Dollar (USD), and Yen (JPY), which is intended to support external security.
Muhamad Nur, Head of Communication Department Group of BI, revealed that the swap value had reached USD 22.76 billion or its equivalent in JPY. “The agreement regarding this bilateral arrangement extension starts taking effect on October 14, 2021,” he further announced, quoting the press release today (15/10).
According to Nur, the purpose of the said contract extension is to solidify financial situations of both countries by providing a safety net to maintain financial stability both regionally and globally. This partnership was initially started back on February 17, 2003. Its first extension took place on October 14, 2018, lasting another three years.
BSA between Indonesia and Japan support the amendment of the Chiang Mai Initiative Multilateralisation (CMIM). CMIM is a regional financial initiative among ASEAN+3 countries, taking form in liquidity of financial safety net for its members. (LK/ZH)