. with the crs, the financial institutions are able to know and analyze the profile of prospective debtors, can assess possible risks, can streamline the cost, can lower npl and create sound credit culture. in the end, it will support the financial inclusion, and support the ultimate goal of macro economy, namely financial sector stability and economic growth. ladies and gentlemen < the purpose of the workshop > 12. in september 2013, world bank issued the general principles of credit reporting ( gpcr ). the gpcr intends to provide an international agreed framework in the form of international standards for credit reporting systems ’ policy and oversight. these principles suggest the key characteristics that should be satisfied in order to ensure that credit reporting systems are safe, efficient and reliable. 13. as part of fisf indonesia program, an assessment against the implementation of general principles of credit reporting ( gpcr ) in indonesia was conducted in 2015, involving associations, financial institutions, public utilities institutions, and the relevant authorities. the assessment found that there are some critical issues that need to be addressed by indonesian authorities, which includes legal gaps, oversight function and consumer protection aspects. 14. this workshop is expected to provide knowledge about the current condition, the development, and challenges of the implementation of crs in indonesia while learning from the experience of other relevant countries. such knowledge will provide input to the authorities in defining implementable actions on the management of crs in line with the gpcr. ladies and gentlemen, 15. before closing my speech, i would like to give thanks to the committee which have thoroughly initiated and prepared such a great event. i would also like to thank all the speakers and partcipants for the willingness and enthusiasm to participate in this event. 16. with that final note, i hope this event provides us with an understanding of the role and contribution that we can give in order to implement the gpcr, particularly with regards to the indonesian context. i strongly believe it will be beneficial for the industry and related authorities. henceforth, i would like to invite all of us here to share thoughts in what i hope would be a spirited discussions filled with fruitful conclusions. may allah bless and lighten our steps forward. thank you. erwin rijanto deputy governor

more appreciated and cherished since they were achieved in the midst of global uncertainty and calamity. 21. in this opportunity, allow me to address bank indonesia ’ s policy responses in 2010 in preserving macroeconomic and financial system stability. in accordance with tonight ’ s theme, i believe that strengthened stability will support the transformation process of our economy in the aftermath of the global financial crisis from a recovery stage to a more sustainable growth. 22. the way bank indonesia formulates policy responses is indeed a meticulous process involving deep internal discussion. this was undeniable since the threats and challenges in 2010 was so diverse and unpredictable creating complexity in the policy making process. 23. in general, there are three challenges in 2010 which will persist in the future. first, the challenge of global economic imbalance. two years after the crisis, the global economy underwent two speeds of recovery in which the recovery in emerging markets is more rapid than that in advanced economies. to ensure durability of recovery, policy makers in developed countries rely on accommodative policies. on the other hand, policy makers in emerging markets have to deal with economic overheating. we may say that almost all emerging markets have undergone policy normalization in 2010, some countries even have shifted to tightening mode. 24. second, challenges associated with global capital mobility and currency war. the differences of economic cycles and policy stances between developed countries and emerging markets unfortunately have led to unfavorable consequences for emerging market. this is evident in the context of tidal wave of capital inflows into emerging markets including indonesia. the surge of capital inflows bring about complexities of macroeconomic policy management to emerging market, including indonesia, since it has bearing on currency appreciation pressure, asset bubble risks, and financial fragility following capital reversal. 25. policy responses by way of foreign exchange intervention and managing capital flows in several emerging market have generated different appreciation pressures among countries. in the mean time, since keeping large stock of international reserves is deemed too costly, emerging markets tend to put their reserves in other emerging markets. this situation indeed entails a significant negative externality in the emerging markets region. hence, a policy coordination in the multilateral level is necessary to avoid negative externality of individual country policy response. 26. third, challenges related to domestic demand and inflationary pressure. global financial crisis 2008 / 2009 has deteriorated inter and intra - regional trade which prompted many countries to focus on promoting domestic demand. however, in