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

inefficiency can turn the economy inflationary and not propoor. the subsequent inflation will erode the purchasing power of the poor, which will widen the socio - economic gap. meanwhile, the tight correlation between the inflation rate and structural aspects implies that to successfully undertake a credible disinflation process requires thorough and integrated coordination between all institutions in the government including bank indonesia. generally speaking, such coordination can be conducted by dividing policy direction into three major parts. first is to continuously maintain internal and external rupiah stability through preemptive and prudential monetary principles as well as policies for the money market, banks and the payment system that strive to buttress financial system stability. this first policy direction is the responsibility of bank indonesia and is aimed at dissipating instability risk in the financial sector that can disrupt rupiah stability. second is to maintain fiscal resiliency and sustainability in the long run to prevent the emergence of fiscal domination that could adversely impact the expectations of sun investors towards the prospects of future inflation. this then can disrupt and hamper monetary policy effectiveness in maintaining macroeconomic stability as a whole. third is to improve the structure and infrastructure of the food distribution market and increase the efficiency and productivity of the economy as a whole. 1. 5. regional competitiveness in the era of regional autonomy and globalization ladies and gentlemen, yet another future challenge we face is regional competitiveness in the era of regional autonomy and globalization. the world economic forum ( wef ) reported in their 2006 - 2007 “ global competitiveness report ” that indonesian competitiveness ranks 50th out of 125 countries ; compared to 69th out of 107 countries in the previous year. despite the obvious improvement that has taken place, indonesia is still considered among the least competitive countries in the asian region. indonesian competitiveness continues to languish behind singapore ( ranked 5th ), japan ( 7th ), malaysia ( 26th ), thailand ( 35th ) and india ( 43rd ). meanwhile, based on an international institute for management development ( imd ) report in the world competitiveness yearbook 2007, indonesian competitiveness was ranked among the two lowest countries surveyed, namely indonesia ranked 54th, whereas venezuela ranked 55th out of the 55 countries sampled. as appears to be common knowledge, increasing economic globalization has made competition amongst countries even tighter. on top of this, tighter global competition directly affects the regional economy, especially in the era of regional autonomy and fiscal decentralization. consequently, the need has arisen for each region in