The agreement was signed by BI Governor Perry Warjiyo and PBOC Governor Pan Gongsheng, and it has been made effective since January 31, 2025.
"The BCSA cooperation allows the two central banks to exchange local currencies up to 400 billion yuan (equivalent to USD55 billion) into equivalent rupiah value," Executive Director of BI's Communication Department, Ramdan Denny Prakoso, stated here on Friday.
Prakoso stated that both central banks are committed to promoting bilateral trade and direct investment in local currencies as well as aim to work together to maintain stability in the financial markets.
The agreement renewal continues the cooperation that began in 2009 and has been updated several times since then.
The BCSA also strengthens efforts to settle transactions using local currencies, a system that has been running since 2021.
The local currency transaction is currently the main method for trade and investment transactions between the two countries.
BI stated that this cooperation is part of Indonesia's central bank policy mix, which aims to support the government's Asta Cita goals, especially in strengthening the external sector and ensuring adequate foreign exchange reserves.
Furthermore, BI considers the renewal of the BCSA agreement with the PBOC to be significant for international cooperation.
It is part of the policy mix in monetary, macroprudential, and payment systems, as well as contributing to the growth of local currency transactions between the two nations.
In addition to China, BI also conducts the BCSA cooperation with other central banks in several countries in the region, such as South Korea, Australia, Malaysia, and Singapore.
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Translator: Rizka K, Kenzu
Editor: Rahmad Nasution
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