Indonesia, Singapore agree US$10 billion swap agreement


Indonesian President Joko Widodo (left) and Singapore Prime Minister Lee Hsien Loong (right) officiate the launch of the commemorative stamps between both countries at Istana Presidential palace in Singapore on Sept 7, 2017. (AFP pic)

NUSA DUA: Central banks of Indonesia and Singapore on Thursday agreed on a US$10 billion swap agreement to forge closer financial cooperation between the two neighbours, the Indonesian presidential office said in a statement.

The agreement was made during a Leaders’ Retreat attended by Indonesian President Joko Widodo and Singapore’s Prime Minister Lee Hsien Loong on the sidelines of the annual meetings of the International Monetary Fund and World Bank on the resort island of Bali.

Bank Indonesia and the Monetary Authority of Singapore agreed to open a line for US$10 billion-equivalent local currency swap and US dollar repurchase agreement, which is intended to “strengthen liquidity management and support financial market deepening” in order to maintain economic stability of the two nations, the statement said.

The two governments also signed other agreements on tourism promotion, protection of foreign investment and fintech cooperation.

“I hope this will increase Singaporean investors’ confidence to always invest in Indonesia. This agreement will also serve as a model and reference on future investment agreements,” President Joko Widodo said, as quoted in the statement.