Bank Indonesia and Laos Central Bank Strengthen Bilateral Cooperation

VIVA – Bank Indonesia (BI) and Laos Central Bank, or Bank of the Lao PDR (BOL) agree to doing cooperation in the areas of central banking to strengthen the bilateral relationship between the two central banks.

This agreement was realized through the signing of a MoU between Governor of Bank Indonesia Perry Warjiyo and Gobernor of BOL Bounleua Sinxayboravong on Tuesday in Incheon, South Korea, on the sidelines of the ASEAN+3 Finance Ministers and Central Bank Governors Meeting.

"This memorandum of understanding inking became the initial step for a more solid collaboration between the two central banks in the future," Governor of Bank Indonesia Perry Warjiyo stated through a statement, on Tuesday.

The signing of the MoU reflects the commitment of BI and BOL to bolster cooperation between the two central banks through a more structured and systematic cooperation framework.

This aims to facilitate various cooperation initiatives in the core areas of central banking that encompass monetary policy, macroprudential policy, financial stability, as well as payment and settlement system.

The agreement will be implemented through policy dialogue, information exchange, technical cooperation, communication and consultation on cooperation monitoring, joint innovation, and capacity development.

Warjiyo remarked that the collaboration is emblematic of the spirit of Indonesia's chairmanship in the 2023 ASEAN to boost inclusivity and connectivity between countries in the region as stipulated in the MoU.

Meanwhile, Sinxayvoravong remarked that the MoU not only signifies a crucial milestone in intensifying cooperation between the two central banks, but it will also be a good start to support the realization of ASEAN's regional connectivity.

Earlier, it was also reported that BI and Bank of Korea had agreed to cooperate to encourage the use of each country's local currency in bilateral transactions between Indonesia and South Korea.