It worked fine before, it worked as Felix says, as soon a remote buddy button was pressed on the smart remote, it reconnected quickly. 
But now it doesn't reconnect anymore for some reason and I have to re-pair it every time.

Upon further inspection with the smartphone harmony app, when a remote buddy button is pressed, a "Bluetooth Pairing" page comes up and it says "Connecting" and it searches to make a connection.. 
After a minute the connection fails and a page named "Power On Playstation 3" comes up that prompts me to either "Pair Now" or "Skip Pairing" 
Then I can follow the pairing method. Press "Pair Now" on the smartphone harmony app, and at the same time go through the Setup Wizard in remote buddy and Pair a Bluetooth remote control again.

It then pairs and all works perfectly like before, until I press the "Off" button. Then I have to go through the same "connecting", failing, pairing process again.