in a consistent manner. consistent means constantly following international best practices and accommodating the needs of indonesian people. bis central bankers ’ speeches distinguished ladies and gentlemen, “ challenges of domestic ps ” 13. we warmly welcome such positive achievements. however, we observe there are at least 3 ( three ) domestic challenges ahead. first, compared to countries in asean, electronic payment transactions in indonesia are relatively low. with the high number of population in indonesia, there is a huge potential to expand payment system service access in indonesia. 14. therefore, in 2014, bank indonesia has launched non - cash national movement in order to encourage the expansion of electronification. the national movement has a mission to establish a less cash society ( lcs ). 15. in its implementation, bank indonesia involves the central government, which is represented by different ministries, and regional governments to encourage the use of non - cash transactions in the governance and daily transactions by the community. 16. second, with the vast archipelago of indonesia, we observe unequal payment system services. people in remote areas may not experience the benefits of familiar services in big cities. 17. the challenging supporting infrastructure availability, like quality telecommunication network, is key to help service expansion. moreover, we all experience the benefits of quick and easy transactions provided by the latest payment system services. 18. third, we observe that the rapid development of information, communication and technology has security risks. crimes or fraud in online transactions will eventually pose legal and reputation risks to payment system service providers. 19. therefore, we consider that consumer protection aspect must also become our priority. we must seek to do the following, including to increase the system security ; expand consumer care channels to allow quick and easy access ; increase consumer awareness on safe transactions ; and increase supervision of payment system implementation. distinguished ladies and gentlemen, “ global & regional ps challenges ” 20. in addition to the three challenges, we also face global and regional development requiring close anticipation. as a country with an open economy system, indonesia needs to consistently increase compliance with the international standard in payment system. 21. fulfillment of the international standard, one of which is specified in the principle of market infrastructure ( pfmi ), will help us ensure payment system infrastructure supporting global financial market to have better resilience. then, safety, reliability, and efficiency need continuous attention for improvement. 22. development of international standards is followed with the developing cooperation initiatives between countries to develop a cross border payment system infrastructure. amidst the increasing inter

more resilient. with regard to the more cyclical component of the recent developments, without underplaying the need for structural reform in some cases, one could even draw a more constructive conclusion of current developments, namely that depreciating exchange rates, and moderation in growth patterns may actually be testimony to how responsive these economies have become, and can adjust to changes in the underlying fundamentals. furthermore, global investors may at present be relatively under - weight in emerging - market securities, strengthening the case for out - performance of the latter over the medium term. private surveys of us and eu pension funds do suggest that their allocation to emergingmarket debt has remained stable and relatively low, as a share of total assets under management, in recent years, even as the share of emerging market bonds in world market capitalisation continued to grow. in particular, global investor allocations to local - currency bonds of emerging market economies remain low, in part because of historical reasons of liquidity which nonetheless fade over time as emerging economies increasingly expand the size and maturity of their local bond market. that said, not all emerging countries retain sustainably stronger fundamentals than their developed world counterparts, and growing divergences within the broad emerging market bloc, coupled with the likelihood of less abundant liquidity over the next few years, suggest that differentiation between respective emerging markets could increasingly become the norm in coming years. whereas the immediate post - recession years had seen a strong cross - correlation between the performances of different emerging market assets, as they shared common drivers in the form of liquidity injections and interest rate expectations in the world ’ s major economies, such correlations have already started to wane in 2013. country differentiation gradually began to replace the proverbial “ risk on, risk off ” trading patterns of the earlier period. countries with relatively weaker growth, inflation and external account metrics saw their currency, bond and equity markets under - perform those with more solid fundamentals. therefore, it may not be helpful to lump together countries and call them “ the bis central bankers ’ speeches fragile five ”, when underlying dynamics in these countries could be quite different, even if they present similarities when one looks at budget deficits and current account deficits. 5. south african assets under this new paradigm this allows me to conclude with a few words on our domestic situation. domestic financial markets have faced significant challenges since the second quarter of this year. the rand has extended a depreciating trend that began in the latter half