Indonesia to sign forex swap deal with China in October: Report

JAKARTA (REUTERS) - Indonesia will sign a currency swap deal with China in October for up to US$40 billion (S$50 billion), the Jakarta Post on Friday quoted Trade Minister Gita Wirjawan as saying.

News of the proposed deal, which will be signed by the two central banks during a visit by Chinese leader Xi Jinping from Oct 2, comes as the rupiah has been battered by a general capital flight from emerging markets in recent months.

It is now this year's worst performing currency in Asia, having lost nearly 15 per cent against the US dollar.

Mr Wirjawan was quoted as saying the bilateral swap agreement would be for up to US$40 billion. He gave no other details, including what terms China might require.

China agreed a 100 billion yuan (S$20.4 billion) bilateral swap deal in 2009 with South-east Asia's biggest economy which expired last year.

Bank Indonesia renewed a swap deal with Tokyo late last month.

The newspaper said the two Asian giants would also sign business deals worth a total of US$20 billion during Mr Xi's visit.