Bank Indonesia and the Bank of Japan signed an extension of a bilateral swap agreement for the third time, amounting to US$22.76 billion.

The Bank of Japan signed the agreement, acting as agent for Japan's Minister of Finance.

Similar to the previous agreement, the purpose of the bilateral swap agreement is to offer support in the event of a liquidity crisis between Japan and Indonesia, according to a Dec. 12 release.

Bank Indonesia governor Agus Martowardojo said the move strengthens cooperation between the two countries and indicates their commitment to maintaining financial stability.