The agreement covers monetary policy, financial stability, payments and digital finance as both central banks navigate a challenging geopolitical environment
Bank Negara Malaysia and Bank Indonesia have signed a new memorandum of understanding, formalising a broader framework for cooperation across key areas of central banking.
The MoU covers monetary policy coordination, financial stability and macroprudential policy, payment systems and digitalisation, financial sector development, capacity building and information sharing.
BNM Governor Dato’ Sri Abdul Rasheed Ghaffour said the agreement “reaffirms the longstanding partnership between BNM and BI” and reflects a shared commitment to expand cooperation into emerging areas beyond established central banking functions.
BI Governor Perry Warjiyo described the MoU as “more than a symbolic commitment,” framing it as a practical step toward deeper institutional ties at a time of heightened geopolitical uncertainty.
The two central banks oversee economies that are deeply intertwined through trade, investment and cross-border financial flows. Malaysia and Indonesia are both members of ASEAN and have been active participants in regional payment connectivity initiatives, including efforts to link their domestic instant payment systems.
The signing comes as Southeast Asian central banks face a common set of pressures, including energy price volatility linked to the US-Iran conflict, currency weakness across emerging markets and growing scrutiny of AI-related risks in financial services.