Signing of the second Bilateral Swap Arrangement between Japan and Indonesia under the Chiang Mai Initiative - Second Stage
August 31, 2005
Ministry of Finance of Japan
Bank of Japan
Ministry of Finance of the Republic of Indonesia
- The Bank of Japan, acting as the agent of the Minister of Finance of Japan, and the Bank Indonesia, today, signed the second bilateral swap arrangement (BSA) under the Chiang Mai Initiative (CMI) - Second Stage (so called "CMI Second Stage"). This will enable Indonesia to swap Indonesian rupiah against US dollars up to 6 billion US dollars between the two monetary authorities in need of short-term liquidity.
- Japan and Indonesia concluded their first BSA up to 3 billion US dollars in February 2003. Later in Istanbul, the ASEAN+3 Finance Ministers agreed on measures to enhance the effectiveness of CMI in May 2005 (CMI Second Stage). The second BSA incorporates those measures (agreed as the CMI Second Stage) such as a significant increase in size (from US$ 3 billion to US$ 6 billion), an integration of ASEAN+3 economic surveillance, an increase in the size of swaps that could be withdrawn without the IMF-supported program (from 10% to 20%).
Note: Under this agreement, total amount of CMI-BSA network is 52.5 billion US dollars.