Jakarta (Indonesia Window) – Bank Indonesia (BI) and the Bank of Korea (BoK) have agreed to cooperate in the area of ​​central banking to strengthen bilateral relations between the two central banks.

The agreement was marked by the signing of a Memorandum of Understanding (MoU) between Bank Indonesia’s Governor Perry Warjiyo and Bank of Korea Governor’s Lee Juyeol as counterparts on Wednesday (Feb. 16).

"The Memorandum of Understanding is intended to provide a more structured and systematic framework for cooperation and to facilitate collaboration between the two central banks in the areas of monetary policy, macro prudential policy, financial system stability, payment and settlement systems, and other areas of central banking," Executive Director of BI’s Communications Department Erwin Haryono said in his statement here on Thursday (Feb. 17).

In particular, he continued, the cooperation on the payment system and settlement sectors include cross-border payments, digital payments, and other areas related to payment improvement and innovation, as well as market infrastructure.

The agreement allows the two central banks to collaborate more actively in various activities through policy dialogue, technical discussions, capacity building, joint research, and other forms.

This cooperation also allows collaboration and exchange of ideas between the two central banks in responding to various challenges in the future, as well as providing an authority for various joint innovations that are increasingly diverse.

BI’s Governor emphasized that the signing of the MoU was an important milestone for the better and closer cooperation between the two central banks.

In addition, the expansion of international cooperation partners also opens a wider collaboration space for BI internationally.

In line with the spirit of Indonesia's G20 presidency in 2022, Bank Indonesia continues to seek to initiate, strengthen and expand cooperation with various international strategic partners.

These various collaborations are expected to further strengthen Bank Indonesia's contribution to the national economy, a part of efforts to make the priority agenda on the financial field of the G20 Indonesia presidency 2022 a success.

Reporting by Indonesia Window