Bank Indonesia (BI) and the Bank of Japan, acting on behalf of Japan's Ministry of Finance, have agreed to extend their Bilateral Swap Arrangement (BSA). Signed by BI Governor Perry Warjiyo and Bank of Japan Governor Kazuo Ueda, the agreement will be effective from October 14, 2024, to October 13, 2027. The agreement allows Indonesia to exchange its currency, the IDR, with either USD or JPY up to a limit of USD 22.76 billion or the equivalent value in JPY, according to BI's Executive Director of Communication, Ramdan Denny Prakoso, during a statement in Jakarta on Tuesday. The BSA serves as a second line of defense in supporting Indonesia's external resilience.
The extension of this agreement highlights the strengthening of financial cooperation between Indonesia and Japan, enhancing the financial safety net for both nations, and contributing to regional and global financial stability. This renewal further reflects the crucial role of international cooperation in Bank Indonesia's policy mix, which is expected to bolster Indonesia's external economic resilience. The BSA between Indonesia and Japan was first signed on February 17, 2003, and has been renewed multiple times, with the most recent extension occurring on October 14, 2021.
