JBIC Signs MOU for Proceeding Discussions toward Indonesian Rupiah Financing for Japanese-affiliated Companies under the Currency Swap Guarantee Scheme
Supporting Funding of Japanese Companies in Collaboration with Private Financial Institutions
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on April 28 a memorandum of understanding (MOU) with The Bank of Tokyo Mitsubishi UFJ, Ltd. (BTMU) and PT Bank CIMB Niaga Tbk (CIMB Niaga), a local financial institution in Indonesia, for proceeding discussions toward Indonesian rupiah financing for Japanese-affiliated companies under the scheme of JBIC guaranteed currency swap transactions between BTMU and CIMB Niaga.
In May 2013, Japan and Indonesia agreed to strengthen the financial cooperation to further develop the economic and financial relationship between the two countries at the Finance Ministers and Central Bank Governors'Informal Meeting between ASEAN Countries and Japan. Indonesia is an attractive investment destination*1
backed with steady economic growth. To strengthen the cooperative relationship between the two countries, this MOU will contribute to diversifying the Japanese companies'rupiah funding sources.
As Japan's policy-based financial institution, JBIC will continue to support strengthening economic and financial relationships between Japan and Indonesia and ASEAN countries and overseas business deployment of Japanese companies in growing markets such as Indonesia, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Indonesia is an important investment destination for Japanese companies as it was voted as the most promising country for investment in JBIC's FY2013 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies. Recently, the need for financing in rupiah is increasing with growing domestic demand.