Bank Indonesia to Open Beijing Office to Boost Links With China

(Bloomberg) -- Indonesia’s central bank is opening a representative office in Beijing in a sign of increasing links between China and Southeast Asia’s biggest economy.

Bank Indonesia said in a statement Friday that the opening of the office was indicative of the growing importance of China’s role in global and regional economics, including Indonesia. The office will also play an important role in liaising with other Chinese government agencies and financial market players, the central bank said.

"The presence of a Bank Indonesia representative office in Beijing is expected to further optimize the economic and financial relations between the two countries and improve understanding of economic and financial developments and policies in China and the implications for Indonesia," Bank Indonesia Governor Agus Martowardojo said in a statement.

Chinese direct investment in Indonesia has been rapidly increasing in recent years and China is already Indonesia’s biggest trading partner with two-way trade exceeding $52 billion in 2016. President Joko Widodo, who needs billions of dollars to fund an ambitious infrastructure agenda, has met with China’s Xi Jinping several times, including on the sidelines of the Belt and Road Forum in Beijing last year.

Bank Indonesia will be the ninth foreign central bank to establish an office in China, the People’s Bank of China said in a statement. An agreement to establish the post was signed by PBOC Governor Zhou Xiaochuan and Bank Indonesia’s Martowardojo.  

"The establishment of Bank Indonesia’s China office will strengthen the cooperation of the two nations’ central banks, and facilitate further development of bilateral finance, trade and economic relations," the PBOC said.

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