REPUBLIKA, JAKARTA -- JAKARTA -- Bank Indonesia (BI) and Bank of Japan (BoJ) agreed to implement the provision of IDR liquidity using Japanese government securities. It aimed to strengthen the stability of financial market.

This agreement would be a milestone for banks operating in Indonesia with eligibility to meet the needs of IDR liquidity of BI. It is carried out through sell and buy back transaction of Japanese government securities owned by Indonesian banks to BI.

"This scheme will expand assets that can be used for liquidity management by BI during the crisis. It also created flexibility for liquidity management of banks operating in Indonesia," Executive Director of Communication Departement of BI, Difi A Johansyah on Friday.

BI and BoJ have committed to support long term relationship between Indonesia and Japan in terms of economic and finance. The next step will be implemented later.

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