in the country. 6. such regulations, directly or indirectly, confirm the mandatory use of rupiah in any payment transactions conducted within the republic of indonesia, either in cash or non - cash. 7. second, nationhood dimension. many parties see and believe that the main purpose for bank indonesia to implement mandatory use of rupiah is solely to bis central bankers ’ speeches support the stability of rupiah exchange rate. it is not wrong, but other than economic aspect, one more basic and fundamental reason is to uphold the sovereignty of the republic of indonesia. 8. i would like to use an analogy to explain the nationhood dimension delivered by president jokowi in his inauguration speech as the president of the republic of indonesia. he said “ we have been ignoring the sea. ” indonesia must honor its own civilization, by returning to the position of indonesia as a maritime country. 9. in relation to enforcing rupiah, i would not wish that within the next 5 or 10 years or even longer, our president will say “ we have been ignoring rupiah. ” 10. it seems an irony because honestly, it is apparent that the tendency to use dollar has become increasingly dominant and a daily practice in certain economic activities. 11. we easily find that dollar is frequently used, starting from quotations, individual ( customer ) payment transactions, such as purchases of electronic devices and apartments, until non - cash payment transactions in a large amount. 12. one of the noteworthy historical records serving as a lesson for us is the release of sipadan and ligitan islands from the republic of indonesia. one of the global considerations in releasing sipadan island is lack of economic transactions and activities using rupiah therein. 13. third, economic / business aspect. foreign currency transactions within the country become one of the factors resulting in increasing foreign currency demand. such high foreign currency demand in economic transactions will make our economy vulnerable to economic fluctuations. the trust of indonesian people and the international world in rupiah will strengthen national economic resilience in general, thereby resulting in the rising dignity of rupiah, both within and outside the country. 14. in the excessive net demand for foreign currency within the country, such use of foreign currency will increase the pressure against rupiah exchange rate depreciation. it will potentially disrupt rupiah stability and add to the complexity of monetary and exchange rate policies. 15. bank indonesia as the central bank realizes that the use of rupia

is 57 percent. that means a lot of farmers are still in the process of moving into cities. some of them may have already found a job, but they have not moved their family or found a residence or apartment in the cities. thus, urbanization is still going on rapidly and continues to generate strong demand for steel and cement. the chinese government intends to promote structural reform and optimization, and attaches great importance to environmental protection. therefore, the government has voluntarily undertaken to cut steel and cement capacity by ten percent. up till now, progress has been made in removing excess capacity. we expect the goal can be achieved. on the shift of comparative advantage. the chinese manufacturing sector has shifted a lot of labor - intensive capacity into asean countries. more and more chinese investors are investing in africa and moving some capacity there. therefore, service industry is accounting for an increasingly larger share in the chinese economy, which is a very good phenomenon. but the service industry is not competitive. we have some strong sectors but still need to strengthen the relatively weak sectors, such as education and medical services. on financial stability. this july, a decision was made in the national financial work conference to set up a financial stability and development committee. in the future, the focus will be on four areas. one is the shadow banking issue. we started to deal with it two years ago and have made positive progress. many shadow banking activities have returned to the banking sector and are included in the balance sheet of commercial banks. the second is asset management sector. this is relatively complicated. the cbrc, csrc and circ may have different rules regarding the same asset management activity. we agree with fsb ’ s guidance for streamlining regulation of the asset management sector. the third is internet finance. a lot of it companies are providing financial services. some have been granted licenses. but some do not have any license, yet provide lending and payment services, and sell insurance products. this may cause competition and financial stability problems. the fourth is financial holding companies. we have observed that some large private - owned companies have got various financial service licenses through m & a. but in the real sense, they are not financial holding companies. they may have engaged in illegal activities, including connected transactions. yet, we do not have the necessary regulatory policies to deal with such cross - sector transactions. going forward, we will further deepen reform, gradually push forward the deleveraging process, and strengthen regulatory coordination to promote healthy development of