The Central Bank of Indonesia (BI) and the Central Bank of The UAE (CBUAE) recently signed a Memorandum of Understanding (MOU) to strengthen their collaboration across various central banking realms, notably in Islamic finance. This agreement, signed by BI Governor Perry Warjiyo and CBUAE Governor Khaled Mohamed Balama, expands upon a prior pact from 2021, which primarily centered on payment systems and digital financial advancements. The main objectives of this MOU are to foster closer connections and facilitate the sharing of information in crucial areas such as monetary policies, macro-prudential regulation, financial stability, anti-money laundering measures, and combating terrorism financing. Additionally, it encompasses digital financial innovations and Islamic economic finance. This commitment stemmed from discussions between Indonesian President Joko Widodo and UAE President Sheikh Mohamed bin Zayed Al Nahyan during a meeting at COP 28 in Dubai.