, and improved provisions for jibor ( jakarta interbank offer rate ). distinguished ladies and gentlemen, 21. we are pleased and record that strategic and tactical steps have been initiated by the government on urgent structural reform nodes in order to build a stronger supporting environment for investment. such nodes, primarily strengthening of physical connectivity focusing on maritime and its integration to land connectivity, we believe will significantly decrease logistics cost, making businesses more competitive in the global market and eventually achieving equal cost efficiency throughout the country. 22. slide 15 : another important thing is the government ’ s efforts to reform fuel subsidy, which is very vital to be shifted to strengthen development ’ s basic capital. development of hr quality, infrastructures, and innovative and institutional capacity, which are the basic capital for the national economy to grow stronger and more sustainable, has been hostage to improperly targeted subsidy. therefore, bank indonesia fully supports the “ firm step ”, the benefits of which will be experienced in the coming years. distinguished ladies and gentlemen, 23. slide 16 : at the end of 2014, some initial indications of economic recovery have been observable. stability oriented policies have prevented the national economy from increasingly stronger pressures. the deficit in the current transaction balance in 2014 has been lower to reach – 2. 87 % of gdp, compared to – 3. 18 % in 2013. 24. slide 17 : stability oriented policy has also put more confidence of investors in the quality of indonesia ’ s macroeconomic policies. it is depicted by the large incoming flows of portfolio investment, which reaches rp 181. 5 trillion in 2014. the flows maintain investment enthusiasm in the market price and government securities ( sbn ). 25. slide 18 : along with direct investment, such portfolio investment flows have supported the surplus in indonesia ’ s balance of payment, making the foreign exchange reserves at the end of 2014 reach usd 111. 9 billion ( equal to 6. 5 months of requirements for imports and payment of the government ’ s external debts ), compared to usd 99. 40 billion at the end of 2013. bis central bankers ’ speeches 26. therefore, it will not be exaggerating to say that policy measures taken by the government and bank indonesia have been proven successful at recovering the macroeconomic condition in 2014 to the “ path of stability ”. ladies and gentlemen, 27. overall, indonesia ’ s economic dynamics in 2014 bring some valuable lessons to support sustainable economic growth. 28. first, it is important to maintain consistent macroeconomic policies, both fiscal

ronald waas : digitization in a growing economy keynote speech by mr ronald waas, deputy governor of bank indonesia, at the visa card managers annual meeting, bali, 27 february 2015. * * * distinguished, • president director of visa and his team for organizing this event, • people of payment system industry, • ladies and gentlemen, good morning and may god bless us all, om swastiastu, 1. to begin this speech, please allow me to invite all of us to praise god the almighty for his blessings so that we meet in a healthy and favorable condition in sofitel hotel, nusa dua – bali, in the visa card managers annual meeting. 2. i welcome the theme “ digitization in a growing economy ”, particularly because digital technology has been a consistently increasing part of our daily lives at the local, asian, and international levels. 3. on this great occasion, i would also like to extend my appreciation to visa and all system payment people who are present here and constantly show their commitment to promote a better payment system in indonesia in the future. ladies and gentlemen, distinguished guests, regulatory function 4. on several occasions of interacting with industries and the wider community, i always quote a famous american writer in the beginning of the 19th century, james f. cooper : “ the very existence of government at all, infers inequality ”. the most fundamental essence of the existence of authorities is to guarantee that any unbalanced social and economic establishments in the community may be managed for the welfare of the wider community. 5. this adagio is important, primarily related to the massive potentials of indonesian domestic market with a consistently increasing economic capacity. without acceptable management, our nation will never be “ the host ” in its own country. 6. therefore, in line with the complex social plurality and highly dynamic digital technology development, the authority ’ s function as a control tool to organize people ’ s life to become more strategic, especially to achieve a completely safe, smooth, and efficient payment system. ladies and gentlemen, distinguished guests, indonesia ’ s economic development 7. millennium 21 is a new horizon which opens many opportunities for indonesia to become a country providing better welfare. with such determination, bank indonesia will keep strengthening its contribution to the national economy. 8. in the last few years, the magnitude of global environmental change keeps happening to the domestic economy. amidst such unfriendly strategic environment, our economic foundation needs improvement and strengthening in some parts. 9.