Japan, Indonesia renew pact to boost local currencies in bilateral transactions

Japan finance ministry, Indonesia bank expand transactions to all bilateral economic deals.

The Ministry of Finance of Japan and Bank Indonesia signed a renewed memorandum that aims to strengthen local currencies for all bilateral transactions between the two countries.

The “Memorandum of Cooperation on Establishing a Framework for Cooperation to Promote Bilateral Transactions in Local Currencies” concerns the Japanese yen and the Indonesian rupiah, the bank said in a statement.

With the renewal, the scope of eligible transactions, previously limited to bilateral trade and direct investment, has now been expanded to include all bilateral economic transactions, it added.

The bilateral framework was first implemented in August 2020, based on the memorandum of cooperation exchanged between the two entities in 2019.