Endnotes

¹Regional credit banks can only accept a small number of regional loans and deposits as they typically have limited capital.

²The first blueprint was introduced in 1995.

³See Section 5.

⁴Prior to 2007, the Jakarta Stock Exchange Market was considered Indonesia's equity market, while the Surabaya Stock Exchange dealt with corporate and government bonds.

⁵As of October 2008.

⁶In 2001, Bank Indonesia issued a regulation on the implementation of “Know Your Customer” principles (PBI no. 3/10/PBI/2001). Banks are required to implement these principles, which consist of policies and procedures to approve and identify customers, monitor customer accounts and transactions, and apply risk management policies. By obtaining customer profiles and transaction characteristics, banks will be able to identify suspicious transactions and report these to Pusat Pelaporan dan Analisis Transaksi Keuangan.

⁷Early in 2008, when most developed countries were already suffering from the global financial and economic crisis, it was thought that developing economies would not be similarly affected. Most analysts predicted that huge domestic market power and prudent macroeconomic policies would keep developing countries afloat— that these countries had “decoupled” themselves from the crisis (Economist 2008).

⁸The latest data are not available for foreign exchange and stock market transactions settled through BI-RTGS. These figures are included in the customer data for 2008.

⁹This refers to the practice of large banks lending money primarily to similarly sized banks, resulting in smalland medium-sized banks suffering from a liquidity squeeze. Bank Indonesia has attempted to create pooled funds (guaranteed by the Deposit Insurance Corporation) and increase the scope and usability of the Sistem Informasi Debitur/Debitor Information System database (SID) to address inter-bank market segmentation.

¹⁰Bonds issued by the GoI for state budget deficit financing.

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