RI-JAPAN BILATERAL SWAP ARRANGEMENT REACHES US$12 BILLION

Jakarta, Feb 23 (ANTARA)- The Indonesia-Japan bilateral swap arrangement (BSA) rose 100 percent from US$6 billion to US$12 billion.

Indonesia's finance ministry spokesman, Harry Z Soeratin, said here on Sunday the hike in the amount of the Japanese financial support to Indonesia was agreed at a meeting between finance minister Sri Mulyani Indrawati and Japanese parliament secretary for financial affairs Shinsuke Suematsu representing Japanese finance minister Kaoru Yosano in Phuket, Thailand, recently.
The ministers had agreed to increase cooperation between the two countries through increasing the BSA amount under the Chiang Mai Initiative.
Soeratin said Japan had also extended a financial aid of up to US$1.5 billion in the form of a guarantee from the Japanese Bank for International Cooperation (JBIC) to the Indonesian government for issuing Yen-denominated bonds (Samurai bonds) through the Japanese capital market.
Japan has also agreed to take part under the contingency loan facility through the JBIC for Indonesia which will be elaborated by Indonesia and its development partners including the World Bank, the Asian Development Bank and some countries.
According to Harry, Minister Sri Mulyani said that the Japanese assistance would contribute to Indonesian economic stability and strengthen its present foreign exchange reserve.
The minister had also reaffirmed the Indonesian government's commitment to maintaining its prudent fiscal and economic policy and to continuing its reform agenda to increase investor confidence and the country's economic resilience.
Shinsuke Suematsu welcomed the assurance of the commitment.
The two coutries have agreed to promote their cooperation in the current global economic challenges.