ASEAN to Lead Cross-Border Payment Connectivity in the World

VIVA – ASEAN will lead and become an example for the world in cross-border payment connectivity by accelerating the digitalization of ASEAN Countries, according to Bank Indonesia Governor, Perry Warjiyo.

“Cross-border payment connectivity aims to support the economy, financial inclusion – related to MSMEs also needs to be facilitated through innovative strategies, then in making policy frameworks and supervision,” Perry Warjiyo stated in Nusa Dua, Bali, on Tuesday.

Furthermore, Warjiyo informed that there are three keys to bringing about the transformation of the ASEAN payment system, as well as overcoming the risk of it.

First, by continuing the Regional Payment Connectivity (RPC) that has been agreed upon by five ASEAN countries such as Indonesia, Malaysia, Singapore, Thailand, and the Philippines, and welcoming the participation of other ASEAN countries.

"Second, we must strengthen the regulatory and supervisory framework, especially on crypto assets. Third, encourage cross-border cooperation to improve the effectiveness of regulation and supervision, understand macroeconomic implications, and develop supporting infrastructure." Warjiyo explained.

After that, he stressed that payment digitalization is related to financial inclusion. He thinks the key to increasing financial inclusion is developing the ecosystem to support inclusion such as providing incentives for MSMEs to access the financial sector.

Then, the development of digital infrastructure to support financial and economic inclusion, including through payment digitization. Strengthening data to support financial access opening innovations such as credit scoring, and finally strengthening financial literacy and consumer protection.

"ASEAN under the Indonesian Chairmanship, with the support of all members, will continue to encourage discussions and concrete efforts to improve financial inclusion, especially by utilizing the experience gained during the G20 Presidency in 2022," he informed.