RI-South Korea Agreed on Cooperation in Bilateral Transactions in Local Currency

Armfalcon.com, SEOUL — Indonesia and South Korea (South Korea) agreed to use local currency in bilateral transactions. This was agreed upon by the Governor of Bank Indonesia Perry Warjiyo and the Governor of Bank of Korea Lee Chang-yong in signing the Memorandum of Understanding (MOU) on the sidelines of the Meeting of the Ministers of Finance and the ASEAN+3 Central Governors in Incheon, South Korea, on Tuesday (2 /5/2023).

The MOU on cooperation on the use of local currency in bilateral transactions will encourage the use of the Korean Won and Rupiah currencies in bilateral transactions between Indonesia and South Korea. According to the Indonesian Embassy’s statement, these transactions include current account transactions, direct investment, and other economic and financial transactions that will be agreed upon by the two Central Banks.

The authorities of the two countries view that the wider use of each country’s local currency for bilateral transactions will ultimately contribute to promoting trade between Indonesia and South Korea. In addition, this cooperation will deepen financial markets in local currencies in both countries.

Indonesian Ambassador to South Korea Gandi Sulistiyanto also witnessed the signing. He expressed hope for increased economic, trade and investment cooperation between the two countries.

Ambassador Gandhi also emphasized his commitment to continue working to enhance cooperation and exchanges between the two countries. One of them, he said, is by encouraging the South Korean Government to immediately implement a visa-free policy for Indonesian Citizens (WNI) who will visit Ginseng Country.

“The visa-free policy will encourage more business and tourism opportunities for the two countries,” Ambassador Gandi said in his statement to the media crew, Tuesday (2/5/2023).

Strengthening cooperation between Indonesia and South Korea is in line with the celebration of 50 years of friendly relations between the two countries in 2023 with the theme Closer Friendship, Stronger Partnership.