Bank of Indonesia and the Ministry of Finance of Japan have signed a renewed and strengthened Memorandum of Cooperation on a framework to promote bilateral transactions in local currencies, covering the Japanese yen and the Indonesian rupiah and commencing on 15 December 2025. The renewal expands the scope of eligible transactions from bilateral trade and direct investment to all bilateral economic transactions. The framework, first implemented on 31 August 2020, is intended to further strengthen collaboration in promoting local currency use in bilateral transactions.
Bank of Indonesia 2025-12-18
Bank of Indonesia and Japan’s Ministry of Finance renew and expand local currency transaction framework to cover all bilateral economic transactions
Bank of Indonesia and the Ministry of Finance of Japan have renewed and expanded their Memorandum of Cooperation to promote bilateral transactions in local currencies, including the Japanese yen and Indonesian rupiah. The updated framework now covers all bilateral economic transactions, beyond just trade and direct investment, effective 15 December 2025.