Indonesia to reopen banking transactions with Iran

Indonesia said it is open to resume banking transactions with Iran following the lifting of economic sanctions against Iran.

“Banking relations, an obstacle we are facing, will soon be resumed,” President Joko Widodo said after receiving Irans Foreign Minister Mohammad Javad Zarif on the sidelines of the 5th Organization of Islamic Cooperation Extraordinary Summit on Palestine and Al Quds here on Monday.

The President said economic and investment cooperation between the two countries had been hindered because banking transactions were closed due to the imposition of economic sanctions against Iran.

He said Indonesian banking authorities had agreed to follow up on the cooperation plan.

“The chairman of the Financial Service Authority (OJK) said just now that the banking transactions would soon be resumed to develop and strengthen economic relations between the two countries,” he said.

Bank Indonesia (the Central Bank) and OJK would discuss the mechanism for cooperation with Iranian banking officials.

Due to the imposition of economic sanctions several years ago, Iranian banks were unable to conduct transactions with overseas banks.

Since Irans nuclear program came to be known in 2002, the United Nations, the European Union, the US and several other countries had imposed economic sanctions on Iran.

After these sanctions were revoked, the flow of trade to and from Iran is expected to become easier.