Japan and Indonesia have agreed to collaborate to support innovation in the financial sector.
The regulatory agencies of the two countries- Japan’s Financial Services Agency (FSA) and the Financial Services Authority of Indonesia (OJK) have exchanged letters on fintech cooperation framework to facilitate the cooperation.
The collaboration will facilitate exchanges regarding new trends in the fintech space as well as bolster partnership between the two authorities.
The cooperation framework also encompasses referral mechanisms for financial innovators, which in turn will enable FSA and OJK to enter into Indonesian or Japanese markets.
In a statement, FSA said: “Indonesia and Japan have built connections with each other in the field of supervision and other financial cooperation. As innovative financial services expand on a global scale, tightening the relationship between authorities becomes more important.”
The financial regulatory agencies enter into such agreements to facilitate exchanges and explore collaboration in the burgeoning fintech space.
In April this year, the Monetary Authority of Singapore (MAS) and the Australian Treasury signed a FinTech Bridge agreement to increase fintech cooperation.
The deal will also help fintechs to expand in each other’s markets and provide them with access to several facilities.
Recently, Deutsche Bank entered into a partnership to install cash deposit machines at Toyota Astra Financial Services (TAF) branches in Indonesia.