just when interest rates are at record lows. the vulnerabilities associated with debt build up over longer periods than the ups and downs with which monetary policy is usually concerned. in that sense, the credit and business cycles are distinct. using monetary policy now to target indebtedness would risk undershooting the inflation target and damaging growth. for all of these reasons, monetary policy is the last line of defence against financial instability. raising interest rates today would be the wrong response to this potential vulnerability tomorrow. fortunately, we are not up the proverbial creek without a paddle. we have many of them which we can use to steer towards two objectives. the first is to ensure that the banking system is resilient. to that end, the bank is conducting a stress test to assess how well major banks and building societies can withstand a sharp housing market correction during a prolonged and painful recession. the results and any consequences that flow from them will be announced later this year. the second objective is to reduce the risk of excessive indebtedness itself by taking out insurance. given recent experience, few can now believe that the right policy is to wait to mop for - one with income, supply constraints are likely to put increasing pressure on prices in a now rapidly - growing economy. that is high relative to other advanced economies. household debt stands at between 105 % and 115 % of disposable income across the euro - area, us and japan ( imf, 2014 ). by latest estimates, around 40 % of new mortgages were at ltis of at least 3. 5x. 25 % at were at ltis of at least 4x. 10 % were at ltis of at least 4. 5x. bis central bankers ’ speeches up the consequences of debt - driven busts after they crystallise. that is even more obvious when bank rate is at its effective lower bound. in other words, when you hear the thunder of the falls, it is wise to get off the river. measures to take out insurance can be graduated and proportionate if action is taken sufficiently early. we can limit risks tomorrow by acting against a loosening in underwriting standards in new mortgage lending today. the value of acting early is reinforced by uncertainty around the precise impact of macroprudential tools. while these have proven effective in other countries, they are still relatively novel here. 8 by acting, assessing, and if necessary re - calibrating, we are more

making with sufficient public consultation. third, how coordination is built between the central government, regional governments, and relevant authorities, thereby avoiding overlapping policy making. 5. today, we gather to inaugurate fspi and address the concern for coordination issues between authorities in indonesia. in fspi, we will consistently cooperate, build coordination, and immediately catch up indonesia ’ s lagging development in acceptable payment system. 6. we certainly expect the support and commitment of some of you as the heads of the relevant ministries and authorities to realize it. in addition, we believe that on the technical level, all technical teams need the commitment and direction of their respective leaders to allow effective role playing. distinguished ladies and gentlemen, “ bi ’ s duties and authorities in ps ” 7. every ministry and authority present today has their own regulations. in its capacity as a central bank, bi ’ s mandates specified in the law include not only ensuring effective monetary policies, but also maintaining financial system stability and implementing smooth, safe, efficient, and reliable payment system. furthermore, the law also mandates bank indonesia to grant permits for payment system implementation. 8. implementation of such mandates correlates and supports one another in order to achieve the objectives of bank indonesia. the reason is the roles of monetary policies in affecting real sector will be transmitted through financial and payment systems. 9. availability of adequate instruments and infrastructures of payment system, which can support financial system activities, will serve as a highly significant factor to facilitate public payment transactions. without such supports, monetary policies will not be transmitted effectively. distinguished ladies and gentlemen, “ development of ps in indonesia ” 10. in line with national economic growth, indonesian people make more payment transactions every year. various non - cash payment instruments have started to become an inseparable part of our daily lives. 11. the use of instruments, such as debit cards, credit cards, and electronic money, keeps developing, as followed by growing new payment channels. through the internet, mobile banking and internet banking facilitate transactions made by the people. the strong penetration of internet also offers a new online shopping medium for the people, which is also known as e - commerce. 12. if we follow the recent growth of e - commerce, it is unbelievable. we see that the rapid growth of e - commerce matches the penetration of cellular phones. facing such development, we as the regulator may not delay in our response. we should have been able to make an architecture, making all industries develop