history shows that although indonesia ’ s economy keeps experiencing turbulence, it always manages to survive by creating stabilization and even to rise by recording high growth. the year 2011 marks the end of indonesia ’ s recovery transition period bis central bankers ’ speeches by successfully entering into the category of middle income country with per capita income of over usd 3, 000. the world bank has ranked indonesia ’ s economy 10th in the world through purchasing power parity ( ppp ). 10. it is certainly the pride of indonesia as a big nation. however, it also leaves a challenge and work for all of us to allow the wider community to enjoy the benefits of the nation ’ s huge economic capacity. ladies and gentlemen, distinguished guests, domestic market potential 11. we realize that the huge potential of indonesia ’ s market has not been optimally explored. in spite of the increasing use of payment system, a survey by mckinsey & company ( 2013 ) shows that the volume of use of cash for retail transactions is still dominant, i. e. 99. 4 %, which is one of the highest compared to asean peer countries. 12. in such condition and in line with the digitization trend development of indonesian people and the international world, we are confident that the future potentials of electronification increase will become higher. some factors may boost such payment system potentials. 13. first, payment system development in indonesia keeps increasing. statistics show that non - cash transactions grow by 22 % in average annually ( in terms of volume ) and 21 % ( in terms of transaction value ). out of all non - cash instruments, the most rapid development is shown by electronic money by around 30 % in 2014. 14. second, digitization trend through the use of telecommunication device by the community, including in remote areas, consistently indicates an increase, which now has reached 270 million 1 users. penetration of internet users in indonesia is also very high, reaching 74. 6 million in 2014 2. 15. third, indonesia has very high population of around 250 million people or half of the total population of asean countries. with the increasing number of middle class growth reaching 150 million people in 2014, more than 50 % of indonesian people may potentially become payment system users. 16. fourth, we record that payment infrastructure development also shows significant growth every year, such as atm, edc, and use of electronic channels, e. g. mobile banking, internet banking, and phone banking. payment infrastructure growth of atm and edc in

empirical approaches that sharpen the view on the existence and nature of contagion occurring in the euro area over the course of this year. 6 the first approach exploits the possibility of a persistent ability of idiosyncratic events in greek credit default swap premiums to predict developments in other euro area countries ’ a previous account of this has been provided in a recent speech by my colleague vitor constancio, who described inter alia how contagion spread the sovereign debt crisis beyond the countries under eu / imf programmes over the summer ( http : / / www. ecb. europa. eu / press / key / date / 2011 / html / sp111010. en. html ). for further discussions of the links between banking instabilities and sovereign debt problems, see v. acharya, i. drechsler and p. schnabl ( 2011 ), “ a pyrrhic victory? – bank bailouts and sovereign credit risk ”, nber working paper, no. 17, 136, june, or a. alter and y. schuler ( 2011 ), “ credit spread interdependencies of european states and banks during the financial crisis ”, mimeo., university of konstanz, june. like in previous episodes, such effects were not limited to sovereigns. the average cds premium of a group of 17 large european banking groups – none of which is greek – showed the largest one day increase of this year. finally, also non - financial corporations were affected. the eurostoxx 50 declined by 5. 2 % on the same day, the third largest one day drop of this year. staff of the international monetary fund has found related evidence with different methodologies ; see c. caceres, v. guzzo and m. segoviano ( 2010 ), “ sovereign spreads : global risk aversion, contagion or fundamentals ”, imf working paper, no. wp / 10 / 120, may, or r. arezeki, b. candelona and n. sy ( 2011 ), “ sovereign rating news and financial markets spillovers : evidence from the european debt crisis ”, imf working paper, no. wp / 11 / 68, march. see also g. amisano and o. tristani ( 2011 ), “ the euro area sovereign crisis : monitoring spillovers and contagion ”, ecb research bulletin 14