Iran, Indonesia to Open Joint Bank Account

The establishment of a joint bank account between Iran and Indonesia will foster financial cooperation and facilitate bilateral transactions, said the Central Bank of Iran’s governor.

Valiollah Seif made the statement during a meeting with Indonesia’s Coordinating Minister for Economic Affairs Darmin Nasution on Monday, CBI’s website reported.

“Based on this system, both countries can open a bank account in each other’s central banks to facilitate the payment process,” he said.

Seif, who also heads the Money and Credit Council, said both countries can even use their local currencies for making payments, though the currency of choice must first be agreed upon by both sides.

He noted that these accounts will be used only to settle bilateral trade deficit or surplus every three months.

“Relations between the two countries’ central banks will improve our banking ties and give our banks the opportunity to open branches in Iran and Indonesia,” he added.

Seif noted that since tourism potentials of Iran and Indonesia are high, the two countries’ banking card systems could be integrated for Indonesian citizens to be able to use their cards in Iran and vice versa.

The Indonesian minister showed interest in Seif’s proposals, noting that his trip to Iran is a follow up on his president’s visit in December.

“I hope that this meeting will ease our relations, especially in monetary and financial sectors. However, I believe that restoring trust between our businessmen is crucial to improve trade,” he said.

Nasution noted that improvement of bilateral banking relations will definitely impact investments and business.

“The Indonesian Oil and Natural Gas Company (Pertamina) has close relations with the National Iranian Oil Company in purchasing natural gas and oil so following our negotiations, I hope to witness expansion of business relations between Iran and Indonesia in the near future,” he said.    

Heading a high-ranking economic delegation, Indonesian President Joko Widodo visited Tehran on December 2016. Several memoranda of understanding for cooperation in a wide range of fields, including banking, stock exchange, oil, paper and food, were signed between Iran and Indonesia’s chambers of commerce.