Joint Press Release The Expansion of Local Currency Settlement Framework between Bank Indonesia and Bank of Thailand

Bank Indonesia and Bank of Thailand today announced the expansion of the rupiah-baht settlement framework. The framework was first launched on 11 December 2017 in accordance with the Memorandum of Understanding between Bank Indonesia and Bank of Thailand that was signed on 23 December 2016. This expansion is a part of the continuous effort to promote wider use of local currencies to facilitate and enhance trade and direct investment between Indonesia and Thailand.

The framework was expanded to include direct investment as an eligible underlying transaction in addition to trade, and to further relax relevant foreign exchange rules and regulations, for example, through more flexible documentation requirements.

In this connection, Bank Indonesia and Bank of Thailand have appointed additional qualified commercial banks in both countries to support the operationalisation of the expanded rupiah-baht settlement framework. In general, the appointed banks are resilient and healthy, experienced in facilitating trade or capable of providing various financial services, and have strong business relationships with banks in the counterparty country.

The appointed banks are as follows:

Indonesia  Additional appointed banks - PT. Bank BTPN, Tbk - PT. Bank CIMB Niaga, Tbk - PT. Bank Danamon Indonesia, Tbk - PT. Bank Maybank Indonesia, Tbk - PT. Bank Mizuho Indonesia - PT. Bank Permata, Tbk - PT. Bank HSBC Indonesia - MUFG Bank, Ltd., Jakarta Branch

 Existing appointed banks - PT. Bank Rakyat Indonesia (Persero), Tbk - PT. Bank Mandiri (Persero), Tbk - PT. Bank Central Asia, Tbk - PT. Bank Negara Indonesia (Persero), Tbk

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Thailand  Additional appointed banks - CIMB Thai Bank PCL - TMB Bank PCL - Standard Chartered Bank (Thai) PCL - The Hongkong and Shanghai Banking Corporation Limited Bangkok Branch - Sumitomo Mitsui Banking Corporation Bangkok Branch - Mizuho Bank Limited Bangkok Branch

 Existing appointed banks - Bangkok Bank PCL - Bank of Ayudhya PCL - Kasikornbank PCL - Krung Thai Bank PCL - Siam Commercial Bank PCL

The expanded rupiah-baht settlement framework will be effective from 21 December 2020.

Bank Indonesia Bank of Thailand 21 December 2020

For media enquiries, please contact:

Bank Indonesia Communication Department Tel: (62 21) 131 e-mail : [email protected]

Bank of Thailand International Department Tel: (66) 2283 5168 email: [email protected]

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