JAKARTA (TheInsiderStories) – In recognition of the enormous economic potential of China, as well as facing the challenges it presents with regard to an unpredictably shifting global economic landscape, Bank Indonesia, Indonesia’s central bank, will officially open a representative office in the most populated country in the world.

The Governor of Bank Indonesia, Agus D.W. Martowardojo, and People’s Bank of China Governor Zhou Xiaochuan signed an agreement on the establishment of a Bank Indonesia Representative Office in Beijing, People’s Republic of China, on January 5, 2018.

This is an important milestone in the bilateral relations between the two central banks, in line with the growing prominence of China in global and regional economies, including that of Indonesia.

“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 expedite those economic and financial developments and policies in China with implications for Indonesia,” stated BI Governor Agus D.W. Martowardojo.

In parallel, the establishment of a Bank Indonesia Representative Office in Beijing will further strengthen the cooperation between Bank Indonesia and the People’s Bank of China.

Representative offices will also play an important role as key contacts and contacts with the People’s Bank of China, other Chinese Government Agencies, and Chinese financial market players.

China is playing a key role in Indonesia’s trade balance deficit. Data from the Trade Ministry shows that Indonesia posted a trade deficit of $8.4 billion with China from January to August of last year, slightly higher than the $9.9 billion deficit recorded over the same period in 2016.

The Representative Office in Beijing is the 5th overseas representative office established by Bank Indonesia, following those currently in place in Tokyo (Japan), Singapore, London (United Kingdom), and New York (United States).

Written by Elisa Valenta, email: elisa.valenta@theinsiderstories.com