Indonesia and UAE Central Banks Expand MOU on Islamic Finance, Digital Innovation

Indonesia and UAE Central Banks Expand MOU on Islamic Finance, Digital Innovation

by December 6, 2023

The Bank Indonesia (BI) and Central Bank of the United Arab Emirates (CBUAE) have signed a Memorandum of Understanding (MOU) to enhance collaboration in various central banking sectors, including Islamic finance.

This agreement, signed by BI Governor Perry Warjiyo and CBUAE Governor Khaled Mohamed Balama, builds on a 2021 pact focusing on payment systems and digital financial innovation.

The MOU aims to deepen ties and facilitate the exchange of information in areas like monetary policies, macro-prudential regulation, financial stability, anti-money laundering, and counter-terrorism financing. It also extends to digital financial innovations and Islamic economic finance.

The commitment follows a meeting between Indonesian President Joko Widodo and UAE President Sheikh Mohamed bin Zayed Al Nahyan during COP 28 in Dubai.

Perry Warjiyo, Governor, Bank Indonesia

Perry Warjiyo

Governor Warjiyo highlighted the MOU’s significance in reinforcing BI and CBUAE’s relationship, contributing to economic stability and compliance with Financial Action Task Force guidelines.

He added that this relationship will lead to mutually beneficial achievements for both central banks and contribute positively to the economy.

H.E. Khaled Mohamed Balama

H.E. Khaled Mohamed Balama

His Excellency Khaled Mohamed Balama, Governor of CBUAE said,

“The MoU with our Indonesian counterparts constitutes a strong basis for consolidating relations and strengthening the future partnership between both parties and contributes to opening the way for more joint regulatory cooperation to foster business opportunities in technology, innovation and digital.


We are confident that through this cooperation, a favourable environment for business growth, trade and investment partnership, will be established and leads to sustainable growth in the two friendly countries.”