Bank Indonesia signs new MOU with CBUAE

Bank Indonesia (BI) and the Central Bank of the United Arab Emirates (CBUAE) have solidified their commitment to deepen cooperation across various sectors, marking a significant step in their partnership. The Memorandum of Understanding (MOU) outlining the expanded collaboration was signed on December 29, 2023, by BI Governor Mr Perry Warjiyo and CBUAE Governor Mr Khaled Mohamed Balama.

This move follows the meeting between the President of Indonesia, Joko Widodo, and the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, on December 1, 2023, during the COP 28 in Dubai, UAE, where the expansion of cooperation was discussed.

The MOU builds on a previous agreement signed in 2021, with a focus on cooperation in the Payment System and Digital Financial Innovation. In 2023, BI and CBUAE commit to furthering their relationship, encompassing various central banking areas such as monetary, macro-prudential, financial stability, payment systems, digital financial innovation, and regulatory and supervisory frameworks related to Anti-Money Laundering and Countering the Financing of Terrorism.

Additionally, the collaboration extends to areas of Islamic economic and finance. The MOU will be implemented through policy dialogue, technical cooperation, capacity building, and information exchange.

Governor Perry Warjiyo highlighted the significance of the MOU, considering it a milestone in strengthening the relationship between the two central banks. The expanded cooperation emphasises the solid partnership between BI and CBUAE, contributing to efforts against money laundering and terrorism financing in line with Financial Action Task Force recommendations.

Governor Perry expressed confidence that this enhanced relationship will lead to mutually beneficial achievements for both central banks, playing a positive role in the broader economy. The commitment to information exchange and capacity building reflects a forward-looking approach to collaborative efforts between Bank Indonesia and the Central Bank of the UAE.