The Indonesian central bank will administer the new debt-restructuring agency, which will operate like a state trust fund.
For Indonesian banks, the four years that may be used to repay $9 billion in loans applies to borrowings due through next March.
Much of that must be sold to help pay for the bailout of Indonesian banks.
Indonesian banks also suffer from inefficiencies that sap their profitability.
Once the currency board was established, the Indonesian central bank would no longer be able to mint more money and lend it to the banks.
Thai and Indonesian banks are making so few loans that even some established exporters cannot get the cash they need to produce goods.
Even with such extensive Government support, that is an impossible task for many Indonesian banks.
Within a few years, many Indonesian banks had followed suit.
But traders said this was mostly the result of rupiah purchases by the Indonesian central bank.
Indonesian banks were ordered to give the new company low-interest loans.