Arab News, Thu, Dec 07, 2023 | Jumada Al-Uola 23, 1445
CBUAE and Bank Indonesia ink deal to expand joint cooperation
Emirates:
The central banks of the UAE and Indonesia have inked a comprehensive deal which
will intensify collaboration across key areas such as monetary and
macro-prudential policy, financial stability, and payment systems.
The signed memorandum of understanding between the
Central Bank of the UAE and Bank Indonesia signifies the extension of an already
established cooperation framework between the two entities.
The deal aims to strengthen their relationship,
elevate information exchange, and foster collaboration across various areas,
according to a press statement.
The agreement was signed by Khaled Mohamed Balama,
governor of CBUAE, and Perry Warjiyo, governor of Bank Indonesia.
Balama said: “The MoU with our Indonesian
counterparts constitutes a strong basis for consolidating relations and
strengthening the future partnership between both parties and contributes to
opening the way for more joint regulatory cooperation to foster business
opportunities in technology, innovation and digital.”
Under the deal, both central banks will also
collaborate to enhance cooperation in digital financial innovation, Islamic
finance, and technical capacity building.
He added: “We are confident that through this
cooperation, a favorable environment for business growth, trade and investment
partnership, will be established and leads to sustainable growth in the two
friendly countries.”
Furthermore, the press statement added that CBUAE
and Bank Indonesia will collaborate on the development of a regulatory framework
addressing anti-money laundering and countering the financing of terrorism,
showcasing their commitment to fostering a secure and compliant financial
environment.
The trade and economic relationship between the
UAE and Indonesia has witnessed a significant boost with the implementation of a
free trade pact on Sept. 1, 2023.
The Indonesia-UAE Comprehensive Economic
Partnership Agreement, signed in July of the previous year, marks Jakarta’s
first such agreement with a Gulf country and Abu Dhabi’s inaugural pact with a
Southeast Asian nation.
This agreement eliminates about 99 percent of
existing tariffs and establishes mutual recognition of each country’s halal
certification, further solidifying economic ties between the two nations.
“With the reduction of tariff or zero tariffs,
Indonesia could strengthen exports. I believe once exports increase, it will
attract more investment,” Husin Bagis, Indonesia’s ambassador to the UAE, told
Arab News in September.
Furthermore, the value of bilateral trade between
the UAE and Indonesia surged to around $5 billion in 2022, as per data from the
Indonesian Trade Ministry. This represents an increase of around 20 percent
compared to the previous year, when it amounted to $4 billion.