, especially since growth in the manufacturing sector has slowed in the post - crisis era compared to pre crisis. manufacturing sector growth in the pre - crisis era was 11. 7 % on average ( 1994 - 1997 ), whereas post crisis it has dropped to 5. 2 % ( 2003 - 2007 ). a downturn in the manufacturing industry has increased the role of the non - tradables sector. however, growth in the nontradables sector is currently supported by lower added - value activities. despite the positive impact of such growth in the form of less exchange - rate pass - through to inflation, the negative impacts include lower added - value for the economy as a whole. the negative effects have also slowed growth in public income on average in the post - crisis era and reduced private consumption growth to a level below that of the pre - crisis period. to address this paradox of growth we need to ensure that the emerging added - value emanating from technological advancement does not focus on a select portion of the population. we will also have to be more sensitive to the requirement for a transparent, efficient and accurate redistributive income policy, which ensures that the benefits are shared with those considered left behind socio - economically. moreover, policy incentives to develop and strengthen the growth of labor - intensive micro, small and medium enterprise, particularly in the non - farm sectors in rural villages, need to be considered. this will provide a safety net for the public should shocks undermine the economy. 1. 4. persistent inflation ladies and gentlemen, another challenge we face together is the rigidity of our inflation rate, which seems to begrudge a decline. many reasons exist to motivate us to immediately address this challenge with unbroken commitment. one of them is that with permanently lower and more congruent inflation towards the inflation rates of trading partners, our macroeconomic fundamentals and balance of payments will improve. however for bank indonesia the drive towards permanently lower inflation is to dissipate pressures stemming from social exclusion. low inflation will preserve the continuity of purchasing power, especially for the underprivileged, whose numbers are immense in our country, while also helping to achieve better quality of economic development for everybody. we know that a rise in the number of the poor can be attributable to a rise in inflation because a rise in inflation signals an erosion of public purchasing power, given the low growth in nominal income. nevertheless, high inflation will also widen the income disparity gap due

, bank indonesia has continuously improved the quality of the bi - real time gross settlement ( rtgs ) system ; implemented at year end 2000. in 2007, the bi - rtgs system, which is a real - time payment and transaction settlement system, processed an average of 33, 000 transactions per day with an average daily value of rp172 trillion realizing the importance of the bi - rtgs system in supporting smooth payment transactions, as a systemically important payment system, we at bank indonesia have always strived to enhance the bi - rtgs, referring to the core principles for systemically important payment system ( cp - sips ) issued by the bank for international settlements. we have also improved operational security and the reliability of the bi - rtgs system by enhancing security instruments and the overall information technology used in implementation, including improving the back - up quality and instituting a business continuity plan in case of natural disasters. subsequently, as part of the efforts to realize an efficient, fast, secure and reliable payment system, bank indonesia has improved the quality of the clearing process through the development of the bank indonesia national clearing system ( sknbi ). sknbi, which was implemented in july 2005, processed an average of 318, 000 transactions per day in 2007 with an average daily value of rp5. 5 trillion since sknbi implementation, the use of credit notes to transfer funds between banks through clearing, which was deemed inefficient particularly with regard to the printing fee and processing procedure, has become obsolete and is now paperless. the implementation of paperless clearing is national, which allows participants to transfer credit to any bank office throughout indonesia. regarding customer protection principles, bank indonesia has set forth the duties and responsibilities of banks when sending transfer instructions and receiving transfers through bi - rtgs and sknbi. the regulation principally attempts to protect the interest of the customer who sends or receives a transfer instruction, therefore the efficiency and security of the payment system is felt by the general public. the development of a non - cash payment system, especially card based payments, prompted bank indonesia to issue pbi no. 7 / 52 / pbi / 2005 on 28th december 2005 regarding the implementation of a card - based payment system as well as several external circulars regarding the procedures, customer protection and prudential principles, improved security, as well as supervision. in order to support the establishment of a healthy credit card industry, bank indonesia actively encourages the formation of a self - regulating