President Jokowi Installs Agency, Leads ASEAN Countries To Do Dedolarisari

President Joko Widodo (Photo: Doc. Antara)

JAKARTA - The Indonesian government through President Joko Widodo (Jokowi) invites ASEAN countries to conduct Regional Payment Connectivity (RPC) and Local Currency Transaction (LCT) in bilateral trade.

This was conveyed by the President when he emphasized Indonesia's position in leading economic development in the ASEAN area as well as this year.

"The implementation of local currency transactions and digital payment connectivity between countries agree to be strengthened, this is in line with ASEAN's cross-aSEAN central goal so that ASEAN is stronger and more independent," he said in a written statement quoted on Friday, May 12.

According to the Head of State, the RPC and LCT are means of advancing regional payment connectivity and local currency transaction mechanisms for each ASEAN country.

"This is part of the 3 Priority Economy Deliverables (PEDs) Pillar of the ASEAN Chairship Economy 2023, which aims to show commitment and determination with ASEAN leaders to deepen financial integration and stability," he said.

Jokowi added, as part of efforts to strengthen regional economic integration, he took advantage of opportunities to expand payment connectivity cooperation in ASEAN multilaterally.

It is stated that this cooperation can facilitate cross-border payments in various jurisdictions and shorten the processing chain, which in turn increases the benefits of cross-border payments.

"Currently, the RPC cooperation has resulted in the implementation of cross-border payments based on the QR Code between Indonesia and Thailand and Malaysia," he said.

The President explained, to complement regional payment connectivity initiatives, an LCT framework was developed to expand the local currency transaction mechanisms of each ASEAN country regionally. This will support ASEAN's efforts to deepen financial integration comprehensively.

For information, ASEAN member countries have developed Guidelines for ASEAN Local Currency Setelment Cooperation to promote the use of local currencies in the ASEAN region for cross-state trade, investment settlement, and revenue and transfer.

Currently, there has been an implementation of LCT cooperation between a number of ASEAN countries and other countries, namely Malaysia, Thailand, Japan, and China.

Meanwhile, Singapore and South Korea are in the stage of building a framework for cooperation.

Ke depan, transaksi LCT akan dikembangkan untuk perdagangan dan investasi dan semua transaksi ekonomi dan keuangan, seperti transaksi giro, transaksi modal, dan transaksi keuangan