halim alamsyah : bank indonesia – improved efficiency through data collection speech by dr halim alamsyah, deputy governor of bank indonesia, in the signing of cooperation agreement between bank indonesia and the ministry of home affairs of the republic of indonesia, jakarta, 23 february 2015. * * * the honorable, • directorate general of population affairs and civil registration services of the ministry of home affairs, mr. h. irman, • heads / officials in the ministry of home affairs, • heads / officials in the state ministries and institutions, • heads of working units in bank indonesia and financial services authority ( ojk ), • heads of financial institutions, association of financial institutions, and indonesia consumers organization ( ylki ), • distinguished guests, assalamu ’ alaikum wr. wb, good morning and may god bless us all, 1. on this great occasion, let us praise god the almighty for the blessings bestowed upon us so that we can attend the “ signing of cooperation agreement on utilization of national identity numbers, population data, and electronic resident ’ s identity cards within the scope of duties of bank indonesia ”. 2. this cooperation agreement signing is the follow - up to the memorandum of understanding on utilization of national identity numbers, population data, and electronic resident ’ s identity cards within the scope of duties of bank indonesia signed by the governor of bank indonesia and minister of home affairs on 6 may 2013. this follow - up takes a relatively long time because in - depth reviews of many aspects are necessary, including infrastructure preparation and primarily the impacts of such utilization policy on bank indonesia and the financial industry broadly. 3. the duties of bank indonesia in the fields of monetary, macroprudential, and payment system require data and information as important elements in formulating appropriate policies and decisions to maintain financial system stability and ensure a reliable and smooth payment system. such data and information are gathered by bank indonesia from various sources through reports and / or surveys of, among others, bank and non - bank financial institutions, government institutions, the capital market, exporters, companies with external debt exposure, and even households. 4. in relation thereto, bank indonesia strongly supports the application of national identity numbers and electronic resident ’ s identity cards by the ministry of home affairs because the fundamental issue of population registration in indonesia is data singularity. the program conducted by the ministry of home affairs to digitize population data by biometric verification technology in the bis central bankers ’ speeches forms of fingerprint recording

authority and institutions under the financial system stability coordination forum, namely ministry of finance, bank indonesia, ojk, and lps, become an inevitable necessity. 16. as a macroprudential authority, in maintaining and sustaining financial system stability, bank indonesia contributes by continuing various macroprudential policies adopted since the middle of 2013. bis central bankers ’ speeches 17. such macroprudential policies among others include application of secondary reserve requirement ( rr ), rr connected with the loan to deposit ratio ( ldr ), loan to value ( ltv ) policy, and financial market deepening as well as financial inclusion increase. in addition, bank indonesia has also issued policies which may be used as prudential guidelines in external debt management by non - bank corporations. 18. we need to inform you that such macroprudential policies are basically temporary and not cross - sectoral. the policies may be at any time reviewed, fine - tuned, and refined to maintain financial system balance and stability as the objective of macroprudential policies. ladies and gentlemen, 19. observing the financial system condition and pressures as well as challenges of the national economy, bank indonesia ’ s macroprudential policy direction in 2015 will focus on efforts to : ( i ) mitigate financial imbalance risks, ( ii ) maintain liquidity adequacy and deepen financial market, and ( iii ) boost quality credit growth in productive economy sectors to support economic capacity increase. 20. such macroprudential policy direction is implemented among others through preparation of national and regional financial balance sheet, application of bank capital components in the form of countercyclical capital buffer ( ccb ), and improvement of rr - ldr provisions. 21. furthermore, macroprudential policy direction is implemented through the adoption of incentive / disincentive mechanism to boost quality msme credit extension and strengthen the legal basis for financial system security net ( jpsk ). 22. one thing we need to emphasize is efforts to maintain and sustain financial system stability and resilience relate not only to conventional financial system. bank indonesia, ojk, and the government must also seek to increase stability and resilience in sharia finance. it is conducted among others through development of sharia finance instruments, sukuk market deepening, and enabling regulation formulation. 23. we must also be alert to the constellation of global monetary policies, where divergence occurs in monetary policies of the fed and other developed countries, which