The bilateral transactions include current transactions as well as direct investment, BI Governor Perry Warjiyo noted through a statement issued on Tuesday.
This cooperation is realized through the memorandum of understanding (MoU) inked by Warjiyo and Governor of Bank of Korea Rhee Chang Yong.
This MoU was signed on Tuesday on the sidelines of the ASEAN+3 Finance Ministers and Central Bank Governors Meeting in South Korea.
This collaboration marked an important milestone in achievement in strengthening the bilateral finance cooperation between the two central banks.
Businesspersons can make the most of the cooperation to reduce the transaction costs and exposure to the risk of exchange rate in conducting bilateral transactions between both nations.
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This can be done including through the use of direct exchange rate quotation between the Korean currency won and Indonesian currency rupiah in interbank trading.
"This cooperation will continue to be strengthened through information sharing and routine discussion between Indonesian and South Korean authorities," Warjiyo stated.
The two countries' authorities deem that broader use of the respective countries' local currency for bilateral transactions will contribute to promoting trade between Indonesia and South Korea.
This will also deepen the financial market in local currency in the two countries.
It is a form of agreement between authorities to form a collaboration framework to support the resolution of bilateral transactions between the two countries, including trade and investment conducted with each countries' local currency.
This will expand similar cooperation agreements that BI has with other countries' authorities.
These include Malaysia (Bank Negara Malaysia), Thailand (Bank of Thailand), Japan (Japan Ministry of Finance), China (People Bank of China), and Singapore (Monetary Authority of Singapore).
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Translator: Martha H S, Fadhli Ruhman
Editor: Jafar M Sidik
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