The Central Bank of the UAE (CBUAE) and Bank Indonesia (BI) have signed a Memorandum of Understanding (MoU) to establish a framework for enhanced bilateral cooperation in payment systems.
The signing took place during a visit to the UAE by Joko Widodo, President of Indonesia.
The MoU, signed by Khaled Mohamed Balama, Governor of the CBUAE, and Perry Warjiyo, Governor of BI, builds on a previous agreement from November 29, 2023. This prior MoU facilitated enhanced cooperation and information exchange across various fields, including payment systems and digital innovation.
This new agreement aims to link the payment systems of the two countries, enabling faster, more efficient, transparent, and affordable cross-border payments. It will also establish a joint mechanism for sound risk management, regulatory cooperation, and protection of users' rights and interests in compliance with each country's laws.
Khaled Mohamed Balama stated,
“This MoU embodies the growing economic partnership between the UAE and Indonesia. It supports bilateral relations in trade and investment and enhances the UAE's role in global trade. We have a significant opportunity to bolster cooperation with Bank Indonesia in financial technology, innovation, and digital payments, reinforcing our efforts to position the UAE as a leading global hub for fintech and cross-border payment solutions.”
Perry Warjiyo added,
“This cooperation in payment systems will strengthen our efforts to promote the digital economy and finance in both Indonesia and the UAE, opening up new possibilities. The potential for cross-border payments under the local currency transaction framework, set to operationalize in 2024, is a promising prospect. BI and CBUAE will advance together with a unified spirit to achieve our shared goals, especially in payment systems, for the prosperity of our economies.”
News Source: Emirates News Agency
