Bank Indonesia (BI) and Bank Negara Malaysia (BNM) have signed a Memorandum of Understanding (MoU) to deepen bilateral collaboration across key areas of central banking, marking a new phase in regional financial and monetary coordination between the two Southeast Asian institutions.
The agreement is designed to deepen coordination in monetary policy, financial and macroprudential stability, payment systems and digitalisation, financial sector development, capacity-building initiatives, and information exchange, along with other mutually agreed areas of cooperation.
Strengthening long-term central bank partnership
Bank Indonesia Governor Perry Warjiyo described the MoU as an important milestone in reinforcing the long-term relationship between BI and BNM, emphasizing that the agreement goes beyond a symbolic commitment.
“This is a testament to the sustained spirit of strengthening institutional relations and deepening bilateral cooperation between the two central banks, particularly amid the current challenging geopolitical landscape,” Perry said, as quoted by Antara on Monday, May 11, 2026.
Expanding strategic financial cooperation
Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said the MoU reaffirms the long-standing partnership between the two central banks and reflects a shared commitment to deepen existing cooperation while expanding into new areas of mutual interest.
“This also represents our shared commitment to deepen cooperation in existing central banking areas, as well as in new areas of mutual interest,” he said.
A framework for stronger regional financial stability
The signing of the MoU is expected to pave the way for a more robust and synergistic partnership between BI and BNM. Both institutions reiterated their commitment to strengthening sustained cooperation, with the aim of enhancing financial stability and institutional collaboration between the two countries.
Regional monetary stability amid global uncertainty
The deepening ties come on the heels of Malaysia’s latest monetary policy decision, which highlighted growing concerns over external economic risks and geopolitical uncertainty.
According to Reuters, Bank Negara Malaysia recently maintained its benchmark interest rate at 2.75% for the fifth consecutive meeting, citing stable inflation and resilient domestic growth while warning that geopolitical tensions and commodity price volatility could weigh on the regional outlook.
Malaysia’s headline inflation averaged 1.6% in the first quarter of 2026, while core inflation stood at 2.1%. At the same time, policymakers continue to monitor risks stemming from global energy prices, external demand, and broader financial market uncertainty.
The evolving global environment has reinforced the importance of closer coordination among regional central banks, including between Bank Indonesia and Bank Negara Malaysia, particularly in safeguarding monetary and financial stability amid heightened external pressures.