Central Banks Of Brunei And Laos Join In Cooperation In Regional Payment Connectivity

Illustration. (Photo: Doc. Antara)

JAKARTA - Brunei Darussalam Central Bank (BDCB) and Bank of the Lao PDR (BOL) officially join in payment connectivity cooperation in the region (Regional Payment Connectivity / RPC). This was marked by the signing of the 11th Memorandum of Understanding (NK) amendment by BDCB on February 29, 2024. Meanwhile, BOL signed the NK amendment on April 3, 2024, on the sidelines of the meeting of the Governor of the Central Bank and the 11th Minister of Finance ASEAN in Luang Prabang, Laos.

For information, this collaboration will expand the cooperation agreement for the connectivity of the ASEAN payment system initiated by Bank Indonesia with the Malaysian authorities (Bank Negara Malaysia), Thailand (Bank of Thailand), the Philippines (Bangko Sentral ng Pilipinas), and Singapore (Monetary Authority of Singapore) on November 14, 2022, followed by the joining of the State Bank of Vietnam (SVB) on August 25, 2023.

Assistant Governor of the BI Communication Department Erwin Haryono said that the joining of BDCB and BOL in payment connectivity cooperation in the region marked the increase in the number of participants to 8 central banks. Previously, Indonesia together with Malaysia, the Philippines, Singapore, and Thailand initiated the RPC in November 2022, and then Vietnam joined in August 2023.

"Cooperation will continue to be expanded by involving all ASEAN member countries and other partner countries outside ASEAN," he explained in his official statement, Wednesday, April 3.

Erwin conveyed that the cooperation in payment connectivity in the region aims to build connectivity for faster, cheaper, transparent, and inclusive cross-border payments.

According to Erwin, since his initiation in 2022, cooperation in payment connectivity in the region has strengthened the role of the central bank in developing and accelerating cross-border payment connectivity.

"The area payment connectivity includes quick response code (QR) and fast payment (QR)-based payments," he said.

Erwin said the connectivity of cross-border payments provides benefits for cross-border economic activity including increasing access to Micro, Small and Medium Enterprises (MSMEs) to international markets, as well as ease of trade, remittance, and tourists in making transactions in partner countries.

Managing Director of BDCB Hajah Rokiah bint Haji Badar, expressed his pride in the position of BDCB as one of the signings of the RPC with Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Managing Director of BDCB also stated that the scope and cooperation area of the RPC will provide benefits, especially in advancing cross-border payment connectivity.

"This collaboration will also be a means to facilitate trade, investment, and economic activities in the region and encourage close collaboration with fellow central banks," he said.

BOL Governor Bounleua Xinxayvoravong said that the signing of the RPC MOU is an important step towards increasing ASEAN cooperation in the future.

"A faster and cheaper financial transaction, as well as a secure and smooth payment system infrastructure will support the expansion and sustainability of the Laos economy," he explained.