Update COVID-19 in Indonesia: 2,615,529 confirmed infections, 68,219 deaths (13 July 2021)
13 July 2021 (closed)
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The Bank of Japan (BoJ) and Bank Indonesia (BI) signed the third Bilateral Swap Arrangement (BSA) on 12 December 2013. The arrangement is an expansion of the current BSA which almost doubles the size of the facility from USD $12 billion to $22.76 billion. This arrangement also introduces a new feature in the form of a crisis prevention scheme to support potential and/or actual liquidity needs. Both institutions also agreed to establish a cross-border liquidity arrangement to enhance the stability of financial markets.
Japan and Indonesia hope that the strengthened bilateral financial cooperation will contribute to the stability of financial markets, and further develop growing economic and trade ties between the two countries.
Under the new cross-border liquidity arrangement, eligible banks operating in Indonesia may obtain Indonesian rupiah (IDR) liquidity from BI by submitting Japanese government securities to BI. The scheme will broaden the range of eligible assets in BI’s liquidity facility during the crisis period, and permits greater flexibility in the liquidity management of eligible banks operating in Indonesia.
This collaboration reinforces BOJ and BI’s commitment to support the long-standing economic and financial relationship between Japan and Indonesia.
Details of the arrangement will be made public when the necessary preparations are completed.
Souce: Bank Indonesia