No.23/191/DKom
Bank
Indonesia and the Ministry of Finance, Japan, today announced the
strengthening of the Japanese Yen and Indonesian Rupiah settlement
framework. The framework was first launched on August 31st,
2020, in accordance with the Memorandum of Understanding between the
Ministry of Finance of Japan and Bank Indonesia that was signed on
December 5th, 2019. The strengthened framework, which will be effective from August 5th,
2021, is part of the continuous effort to encourage trade and
investment as well as strengthen macroeconomic stability by promoting
more extensive use of local currencies for the settlement of trade and
direct investment between Indonesia and Japan.
The
framework was expanded to include further relaxation on relevant
foreign exchange policies, such as expansion on hedging instruments and
greater flexibility for entities in Japan using IDR as well as customers
in both countries. Followings are the outline of the expansion of the
framework:
- Add cross-currency swap and domestic-NDF as a hedging instrument
- Increase
the threshold of the transaction which does not require underlying
documents to USD 500,000 or local currency equivalent per transaction
(which was previously set at USD25,000)
- Expand the eligibility
criteria for hedging to also include direct investment transactions with
anticipatory basis documents and extend the hedging tenor based on the
anticipatory basis document to more than one year
The
following banks act as an ACCD (Appointed Cross Currency Dealer) to
cooperate and undertake the Indonesian Rupiah and the Japanese Yen
transactions under this initiative.
Indonesia
- MUFG Bank, Ltd., Jakarta Branch
- PT. Bank BTPN, Tbk
- PT. Bank Central Asia (Persero), Tbk
- PT. Bank Mandiri (Persero), Tbk
- PT. Bank Mizuho Indonesia
- PT. Bank Negara Indonesia (Persero), Tbk
- PT. Bank Rakyat Indonesia (Persero), Tbk
Japan
- Mizuho Bank, Ltd.
- MUFG Bank, Ltd.
- PT. Bank Negara Indonesia (Persero) Tbk, Tokyo Branch
- Resona Bank, Limited
- Sumitomo Mitsui Banking Corporation
Bank Indonesia
The Ministry of Finance of Japan
August 5th, 2021
For media enquiries, please contact:
Bank Indonesia Communication Department
Tel: (62) 21 131
e-mail: bicara@bi.go.id
The Ministry of Finance of Japan
International Bureau Regional Financial Cooperation Division
Tel: (81) 3 3581 2886
Fax: (81) 3 5251 2197
