Bank Indonesia (BI) and the Ministry of Finance of Japan (JMOF) agreed to strengthen the framework for local currency settlement (LCS1) transactions between the two countries in Rupiah-Yen which has been implemented since August 31, 2020.

"The strengthening is meant to provide an easing of rules for foreign exchange transactions in the framework of the settlement of bilateral transactions between the two countries with the Rupiah-Yen, including expansion of hedging instruments, implementation of hedging on the basis of trade and investment projections, increased flexibility of transfers to IDR accounts in Japan. , and an increase in the threshold value of transactions without underlying documents up to US$500,000 per transaction," said BI Executive Director Erwin Haryono in his statement on Thursday (5/8).

According to Erwin, strengthening the cooperation framework, which will take effect on August 5, 2021, is part of ongoing efforts to encourage trade