bank indonesia ’ s annual meeting 2020 bank indonesia ’ s annual meeting 2020 bank indonesia ’ s annual meeting 2020 bank indonesia ’ s annual meeting 2020 table of content global economic performance and prospects : recovery underway, financial market uncertainty eases national economic performance and prospects : recovery process underway, stability maintained bank indonesia policy mix 2020 : strengthening stability, supporting national economic recovery • rupiah exchange rate stabilization policy • monetary policy stimulus • monetary policy mix and macroprudential policy • implementation of law no. 2 of 2020 : supporting state finances and financial system stability • digitalization of payment systems : accelerating national digital economic and financial integration • money market deepening : effectiveness of policy transmission and financing • empowerment of sharia economy and finance, and msmes • strengthening international policy • transformation of bank indonesia synergize to build optimism for economic recovery : one prerequisite, five principal strategies bank indonesia policy mix for 2021 : supporting optimism for national economic recovery • monetary policy direction • macroprudential policy direction • payment system policy direction • acceleration of money market deepening • msmes policy and sharia economy and finance • international policy moving forward with optimism bank indonesia ’ s annual meeting 2020 synergize to build optimism for economic recovery speech of the governor of bank indonesia bank indonesia ’ s annual meeting jakarta, 3 december 2020 his excellency, • the president of the republic of indonesia, joko widodo. honourable guests, • leaders and members of the house of representatives and house of regional representatives of the republic of indonesia ; • leaders of state institutions ; • ministers of indonesia onward cabinet ( kabinet indonesia maju ), • chairman and members of the board of the financial services authority ( ojk ) and deposit insurance corporations ( lps ) • former governors and board members of bank indonesia ; • provincial governors from all across indonesia ; • leaders of the banking industry, corporate sector and national media ; • awardees of 2020 bank indonesia award ; • distinguished ladies and gentlemen, bank indonesia ’ s annual meeting 2020 assalamualaikum warahmatullahi wabarakatuh, greetings to everyone, shalom, om swastyastu, namo buddhaya, salam kebajikan. first of all, let us express our gratitude to the almighty god, because only with his grace and blessings today we could gather at this bank indonesia annual meeting of 2020. with all humility, we would like to extend our gratitude mr. president who has been pleased to

set up within the existing rbi infrastructure. the reserve bank, being a statutory corporation, can do only those activities which are permitted by the reserve bank of india act, 1934 or other legislations. in addition to its core central banking functions, the reserve bank also performs certain promotional functions. however, this promotional activity is limited to ‘ financial institution ’ only 10. since no financing activity is contemplated for the proposed pcr, it might be difficult to label pcr as a ‘ financial institution ’. this takes it out of the purview of a promotion under the reserve bank of india act, 1934. another option is to promote an organization for a matter incidental to the functions of the reserve bank 11 – as part of the reserve bank of india act, 1934 or banking regulation act, 1949 or any other enactment. collection of information, including credit information, from its regulated entities is an important aspect of the regulatory and supervisory functions of the reserve bank. one can find many provisions in different enactments which enable the reserve bank to collect such information. if the scope of collection of information for pcr can be deemed to be reasonably incidental to the expressly permitted activities of the reserve bank, a subsidiary or a department for the purpose of setting up and hosting the pcr would be justified. otherwise, the reserve bank of india act, 1934 can be suitably amended conferring the reserve bank powers to conduct the business of pcr. such a specific conferment of power, with clear enumeration of the functions of pcr, would remove the limitations of incidental powers mentioned above. 2. confidentiality constraints : an important issue in connection with the setting up of pcr is the overriding of confidentiality provisions in many enactments, which directly or indirectly bar sharing of information, including credit information, except in manner specifically permitted. as the pcr will have to get information from different sources, the inability of the sources to share such information can be a constraint. to this end, the pcr will have a consent - based architecture. the notice and choice framework to secure an individual ’ s consent is fundamental to data processing practices in a digital economy. it is based on the act of an individual providing consent for certain actions pertaining to his / her data. it is essential that users provide consent to an entity sharing data ( the data provider ) before they share data with an entity requesting access ( the data consumer ). the consent based architecture of the pcr will strengthen privacy