PETALING JAYA: Bank Negara Malaysia (BNM) and Bank Indonesia recently renewed their local currency bilateral swap agreement (LCBSA) of up to RM8 billion/28 trillion rupiah.
The renewal, which follows the first agreement signed in 2019, reinforces the ongoing cooperation by both central banks.
“Given the significant trade flows between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia by renewing the LCBSA. The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, an arrangement that facilitates settlement of trade and investments in local currency,” said BNM governor Tan Sri Nor Shamsiah Mohd Yunus.
“Bank Indonesia believes that the swap arrangement renewal reflects the strong ongoing financial cooperation between Bank Indonesia and BNM. The renewal also shows our commitment to strengthen financial market stability by promoting more extensive use of local currencies for bilateral transactions between Indonesia and Malaysia,” said Bank Indonesia governor Perry Warjiyo.
In another development, Malaysia External Trade Development Corporation (Matrade) director of Asean and Oceania Raja Badrulnizam Raja Kamalzaman said today Malaysia-Indonesia trade relations are robust with the total amounting to RM95.10 billion (US$22.93 billion) in 2021, increasing by 43.5% from 2020.
He said Indonesia was Malaysia’s seventh largest trading partner globally while within Asean, Indonesia was its third largest trading partner, Bernama reported
“Total exports recorded an increase of 32.5% to RM39.22 billion (US$9.45 billion) while total imports increased by 52.3% to RM55.88 billion (US$13.47 billion) from 2020,” he said in his keynote address at the Business Strategy Analysis Indonesia Conference 2022 at Matrade Exhibition & Convention Centre.
The three-day event from brings together industries such as green energy, palm oil, oil and gas, food and beverages, pharmaceuticals, cosmetics, Internet of things, home furniture, coals and minerals, training and education, manpower, machineries, industrial/special economic zones development, tourism and construction materials.
