ProdukHukum BankIndonesia SEACEN Advanced KL

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Dyah N.K. Makhijani

Bank Indonesia

PRESENTED TO

1

st

_{SEACEN ADVANCED LEADERSHIP COURSE}

ON CENTRAL BANK MANAGEMENT AND POLICY

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• Staff “on-loan” from :

- Research Department - Legal Dept

- Money Market Dept - Accounting/Finance Dept - Forex Dept - IT Dept

- Banker Regulation Dept - Currency Dept

- International Dept - Strategic Planning Dept/OE practices

• Who ?

(were involved in the

development of the Blue Print )

• Understand the coverage of PSS

• Provide a road map for longterm development • Prioritization of projects over a long period of time

• Help building sufficient mass of staff/ capability to handle future development

• Why ?

(did we start with a Blue Print)

Developing a National Payment System Blue Print in 1995 (updated in 2004)

• What ? (did we start with)

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• Coverage of reform

• Payment instruments & method • Banking procedures

• Settlement mechanism • Payment infrastructure

• Payment service providers (Clearing houses, switch providers, etc)

• Legal framework • Coverage of

study within the Blue Print

project

development

• “Advisors” from BIS, WB, IMF, Fed Washington DC, RBA (did we invite

to help ?)

• Shift large value parts to RTGS keep netting for lower value

• Settlement mechanism

• Shift towards less paper • Payment instruments

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of reform

• Laws to be in place for BI’s mandate pertaining to PSS, funds transfers, exclusion from ø hour rules, finality of

payments, etc. • Legal framework

• Rules/code of

conduct/”oversight” framework to be placed

• Business convergence if possible

• Payment service providers

• Convergence, at least interoparable

• Payment infrastructure

• Shift large value credit to RTGS

• Put FtS mechanism for the rest of netted payments • Risk mitigation in netting

system

• Shift to credit transfers • Bank-Level Cheques

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• Targetted • Factual

• Are we on track ? • Blessing in disguisse • Reform time frame

(Defined during 1995 Blue Print Development)

- Risk reduction - Efficiency

- Equitable access - Consumer protection

: 10 – 15 years since 1996 : 10 years already passed : We believe so

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1. UNDERSTAND THE BIG PICTURE

2. HIGH – LEVEL “BELIEVERS”

3. BUILD ROADMAP, CLEAR PRIORITY, STICK TO IT

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