JAKARTA - Bank Indonesia (BI) and the Bank of Korea (BoK) have agreed to cooperate in the area of central banking to strengthen bilateral relations between the two central banks. This agreement was realized through the signing of a Memorandum of Understanding by the Governor of Bank Indonesia (BI), Perry Warjiyo, and the Governor of the Bank of Korea (BOK), Lee Juyeol, as a counterpart on February 16, 2022, just one day before the meeting of the Governors of the Central Banks and the Ministers of Finance of G20 countries.
The Memorandum of Understanding is intended to provide a more structured and systematic framework for cooperation and facilitate collaboration between the two central banks in the areas of monetary policy, macroprudential policy, financial system stability, payment and settlement systems, and other areas of central banking. In particular, collaborative efforts in the payment system and settlement sector include cross-border payments, digital payments, and other areas related to payment improvement and innovation and market infrastructure.
“This agreement allows the two central banks to collaborate more actively in various collaborative activities through policy dialogue, technical discussions, capacity building, joint research, and other forms of cooperation. This cooperation enables collaboration and exchange of ideas between the two central banks in responding to future challenges, as well as providing an umbrella for increasingly diverse joint innovations," said Erwin Haryono, Head of the Communications Department of Bank Indonesia in a release.
The Governor of Bank Indonesia emphasized that the signing of this Memorandum of Understanding is an important milestone for the better and closer cooperation between the two central banks. In addition, the expansion of international cooperation partners also opens up wider collaboration space for BI internationally. (LM)