Jakarta (VNA) Bank Indonesia Governor Perry Warjiyo and Japanese Finance Minister Taro Aso recently signed a memorandum of understanding on the use of the countries’ currencies in bilateral trade and direct investment transactions.

The agreement on the establishment of a local currency settlement framework will enable the two sides to promote the direct exchange of rate quotation and interbank trading between the Japanese Yen and the Indonesian Rupiah.

The cooperation will also be enhanced through information sharing and regular discussions.

In a joint press statement released on December 5, they said the framework is a key milestone for both nations to intensify their financial cooperation.

Japan is currently the second largest investor in Indonesia. Over the last 10 years, Japan has invested 31 billion USD in the archipelago nation. The contribution of Japanese companies to Indonesia’s exports increased from 18.1 percent to 24.4 percent in the first half of 2019, according to data from the Investment Coordinating Board of Indonesia./.