Indonesia and Singapore signed a $10 billion swap agreement on Thursday to forge closer financial cooperation between the two neighbors, the presidential office said in a statement.
The agreement was made during the Asean Leaders’ Conference attended by President Joko “Jokowi” Widodo and Singaporean Prime Minister Lee Hsien Loong on the sidelines of the Annual Meetings of the International Monetary Fund and World Bank Group in Nusa Dua, Bali.
Bank Indonesia and the Monetary Authority of Singapore agreed to open a line for $10 billion-equivalent local currency swap and US dollar repurchase agreement, intended to “strengthen liquidity management and support financial market deepening” and maintain economic stability of the two nations, the statement said.
The two governments also signed other agreements on tourism promotion, protection of foreign investment and fintech cooperation.
“I hope this will increase Singaporean investors’ confidence to always invest in Indonesia. This agreement will also serve as a model and reference on future investment agreements,” Jokowi said in the statement.
Singapore`s investment in Indonesia reached US$5.04 billion or rose 38 percent in the first half of the year compared with the same period last year.
In the whole of 2017, Singapore`s new investment was valued at US$8.44 billion in the country, Industry Minister Airlangga Hartarto said on Sunday.
Meanwhile, Indonesia`s exports of non-oil/gas commodities to Singapore were valued at US$9 billion making that neighboring country the fifth largest destination of Indonesia`s exports of commodities other than oil and gas.