figure 13 ). in line with these developments, core inflation indicators also declined in the second quarter ( figure 14 ). the downward trend in underlying inflation is also apparent in the recent course of seasonally adjusted data ( figure 15 ). it should be pointed out that the tax incentives in 2009 will put downward pressure on the annual rate of increase in core price indicators during july and october and that we expect core inflation indicators to remain consistent with medium - term targets in the upcoming period. accordingly, the uptrend in medium - term inflation expectations that started in the final quarter of 2009 slowed during the second quarter of 2010 ( figure 16 ). in fact, following the betterthan - expected price developments during may and june and the return of annual inflation to single digits, near - term inflation expectations were revised down markedly quarter - on - quarter ( figure 17 ). however, current inflation expectations for 12 and 24 - months ahead hover slightly above year - end targets of 5. 5 and 5 percent for 2011 and 2012, respectively. 2. monetary policy response after commenting briefly on inflation developments, i would now like to cover the policies pursued by the central bank during the last quarter. anticipating that inflation would decrease sharply following the last quarter of 2008, the central bank of turkey ( cbt ) focused on alleviating the potentially harsh impact of the global financial crisis on the domestic economy. in this respect, the cbt has delivered sizeable cuts in policy rates, while providing liquidity support to facilitate the smooth operation of credit markets. accordingly, policy rates have been cut by 1025 basis points since november 2008 ( table 1 ). considering the favorable developments in credit markets and the moderate recovery in economic activity, the monetary policy committee ( the committee ) ceased policy rate cuts in december 2009. notwithstanding the rapid increase in inflation during the last quarter of 2009 and the first quarter of 2010, i would like to remind you that the committee, highlighting the persisting downside risks regarding the global economy and the consistency of core inflation indicators with the medium - term inflation targets, expressed that policy rates would stay at low levels for a long period. during the second quarter, the fall in inflation and increased downside risks regarding the global economy have vindicated the monetary policy stance of the committee – that it may be necessary to maintain policy rates at current levels for some time, and to keep them at low levels for a long period. accordingly, we see that market expectations regarding future policy rates were revised downwards ( figure

to rp5 million per transaction to increase qris transactions in the middle segment, since 1stmay 2021. synergy and coordination with the government continues to be strengthened through qris use in the bbi and bwi. qris expansion in the local government environment was also expanded as part of the regional digitalization expansion and acceleration team ( tp2dd ). thanks be to god, the various policies and close coordination have produced positive results. the target of 12 million merchants ( table 41 ) connected to qris was achieved on 1st november 2021. furthermore, qris, which operates in 34 provinces and 480 regencies / cities, is used by 88 % of micro and small businesses, and is operated by 68 payment service providers, both banks and nonbank institutions. moreover, the use of qris is also increasing both in terms of volume and value, which demonstrates burgeoning public acceptance of qris ( graph 41 ). bank indonesia continues to expand the payment electronification program for social aid program ( bansos ) disbursements, transportation modes, and regional government financial transactions to support acceleration of the digital economy and finance. bank indonesia fully backs government efforts to disburse social assistance more quickly, on target, and with good governance through the social assistance electronification program. to that end, bank indonesia continues to encourage the digitalization of social assistance 4. 0 by strengthening business models, regulations and payment methods that are in line with prevailing needs, including improving data quality. meanwhile, in terms of transportation electronification, bank indonesia encourages the integration of payment systems and data in the transportation sector. bank indonesia provides support for the preparation of a payment aspect business model for integrated transportation modes as well as multi - lane, free - flow toll roads that will gradually begin operating in 2022. furthermore, to strengthen the electronification of regional government transactions, bank indonesia in 2021 strengthened synergy with the acceleration and expansion regional digitalization task force. as of 14th october 2021, a total of 482 tp2dd have been established, accounting for 88 % of local table 4. qris registered merchants grafik 41. perkembangan qris graph qris grafik41. 42. development perkembanganofqris million transactions idr billion merchant 22 / 03 / 2020 05 / 11 / 2021 growth ( % ) big enterprise 129, 834 449, 311 246 % usaha mikro social / donation total 3. 000 2. 500 medium