Bank Negara Malaysia (BNM) and Bank Indonesia (BI) held a high-level bilateral meeting in Jakarta on 27 September 2024. The two central banks exchanged information and experiences and had a comprehensive policy discussion encompassing macroeconomic, monetary, and financial development, payment systems and digitalisation, and strategies for advancing Islamic finance. The close engagements reflect the long-standing cooperation between the central banks and strong commitment to further strengthen mutually beneficial collaboration between both countries.

At the meeting, BNM Governor Dato’ Seri Abdul Rasheed Ghaffour and BI Governor Perry Warjiyo signed the renewal of the Local Currency Bilateral Swap Agreement (LCBSA). The LCBSA enables the exchange of local currencies between the two central banks, with a value amounting to RM24 billion/IDR 82 trillion, over a period of five years. This follows the initial agreement which was signed in 2019 and the subsequent renewal in 2022. The LCBSA reflects the ongoing collaborative efforts in central banking cooperation to strengthen both countries’ resilience, while also supporting the use of local currencies in trade and investments.

BNM Governor Dato’ Seri Abdul Rasheed Ghaffour said, ‘Given the deepening trade and financial linkages between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia with the renewal of the LCBSA. The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, which remains a key enabler for trade and investment settlements in local currencies.’

BI Governor Perry Warjiyo said, ‘Bank Indonesia believes that the enhancement of LCBSA with BNM represents the importance of international cooperation as part of Bank Indonesia policy mix that support key policies in the area of monetary, macroprudential, and payment system, while contribute to the development of local currency in bilateral transactions.’

Bank Negara Malaysia
Bank Indonesia

27 September 2024

Bank Negara Malaysia Governor Dato' Seri Abdul Rasheed Ghaffour (on the left) and Bank Indonesia Governor Mr. Perry Warjiyo (on the right) at the signing of Local Currency Bilateral Swap Agreement (LCBSA) in Jakarta today.

Mr. Perry Warjiyo, Governor of Bank Indonesia (front row, second from left), and Dato' Seri Abdul Rasheed Ghaffour, Governor of the Bank Negara Malaysia (front row, centre), conducted a bilateral meeting on 27 September with delegates from both sides to further strengthen collaboration between both central banks.