Indonesia, Japan extend bilateral swap agreement.
The Japanese and Indonesian finance ministers join a group photo at the International Monetary Fund and World Bank Group Annual Meetings in Washington on Saturday. (Bloomberg photo)
JAKARTA - Indonesia and Japan have extended their bilateral currency swap agreement for another three years.
The agreement was reached on Friday between Japanese Finance Minister Taro Aso, Indonesian Finance Minister Sri Mulyani, and Bank of Indonesia Governor Agus Martowardojo at annual meetings of the International Monetary Fund and the World Bank in Washington.
The agreement allows both countries to settle trade settlements without using the US dollar. The size of the swap facility remains at $22.76 billion.
"It shows the strengthening financial cooperation between both countries," Agus said.
He voiced hope that the arrangement could support the efforts of maintaining macroeconomic and financial stability in the region and also complement existing financial safety nets at the regional and global levels.
Besides Japan, Indonesia also has bilateral swap agreements with fellow member countries of the Association of Southeast Asian Nations, China, South Korea, and Australia.
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