Indonesia, Japan Extend Bilateral Currency Swap Agreement

Jakarta, VIVA – Bank Indonesia (BI) and the Bank of Japan (Bank of Japan) have agreed to extend the Bilateral Swap Arrangement (BSA) cooperation agreement.

Through this cooperation, the two countries will exchange rupiah with U.S. dollars or Japanese yen.

The agreement, signed by BI Governor Perry Warjiyo and Bank of Japan Governor Kazuo Ueda, is effective from October 14, 2024, to October 13, 2027.

"This extension allows Indonesia to exchange rupiah for U.S. dollars or Japanese yen up to $22.76 billion or an equivalent amount in yen," said BI’s Head of Communications, Ramdan Denny Prakoso, in a statement on Tuesday (Oct 15).

Prakoso added that both Indonesia and Japan view this BSA extension as a means to strengthen financial cooperation between the two countries in providing a financial safety net, expected to contribute to both regional and global financial stability.

The extension of this cooperation also represents the importance of international cooperation as part of Bank Indonesia's policy mix.

"This is expected to contribute to the external resilience of the Republic of Indonesia's economy," he added.

The BSA agreement between Indonesia and Japan was first signed on February 17, 2003, and has been extended several times, most recently on October 14, 2021, with a validity of three years.