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Signing of the agreement on an increase in the maximum amount of the Bilateral Swap Arrangements between Japan and Indonesia under the Chiang Mai Initiative

April 6, 2009
Ministry of Finance of Japan
Bank of Japan

Ministry of Finance of the Republic of Indonesia
Bank Indonesia

The Bank of Japan, acting as the agent for the Minister of Finance of Japan, and Bank Indonesia signed the agreement on an increase in the maximum amount of the bilateral swap arrangement (BSA) under the Chiang Mai Initiative of the ASEAN+3 Finance Ministers' Process.  This agreement will enable Indonesia to swap Indonesian rupiah against US dollars up to US$12 billion, doubled from US$6 billion, in the event that an immediate need arises that would require short-term liquidity support.

The BSA between Japan and Indonesia was first signed in 2003.  This agreement on an increase signals the continued solidarity of the ASEAN+3 member countries in securing financial stability in the region especially amid the current severe global economic downturn coupled with heightened risk aversion in financial markets.