BI-MAS begins rupiah-Singapore dollar trades via 12 banks

Bank Indonesia and the Monetary Authority of Singapore have begun operating a local currency transaction framework for bilateral Indonesia-Singapore settlement. Under the scheme, current account transactions, direct investment and cross-border payments can be settled in rupiah and Singapore dollars through appointed cross currency dealer banks. BI and MAS have appointed nine banks in Indonesia, including Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, CIMB Niaga and Bank DBS Indonesia, as well as three banks in Singapore: DBS, OCBC and UOB. The framework follows a memorandum of understanding signed in August 2022, and implementing rules are set out in PADG Number 25 of 2026. Key features include direct rupiah quotations against the Singapore dollar and eased requirements to encourage local currency use.