Four Policy in the Banking Sector Bank Indonesia, Bank Indonesia (BI) has set out four main policy-based incentives and disincentives in order to strengthen resilience and enhance the role of intermediary function in 2010. Based on the Economic Report of Indonesia Year 2009 entitled "Strengthening Resilience, Promoting the National Economic Recovery Momentum ', published BI in Jakarta, Thursday, April 8, 2010 stated, learning from experience in dealing with the global economic crisis of the last two years, four main policy banks in 2010 were:

First, the increased resistance of the banking system. This policy will be pursued through several steps, ie, strengthening the regulation, the stabilization system of bank supervision, restructuring the level of competition in the Indonesian banking industry, as well as deepening of financial markets. Step strengthening regulatory arrangements done through the adjustment of capital for the purpose of strengthening the resilience of banks to risks, regulatory transparency of financial reporting, improve the quality of implementation of good governance of the organization, and increasing the effectiveness of risk management.

Policy strengthening bank supervision system will be achieved in improving and strengthening them with methods and practices of risk-based supervision, strengthening of the operational requirements of bank supervision, improved fit and proper test requirements, as well as increased cooperation with supervisory authorities nonbank financial institutions both within and outside the country. Level of competition policy realignment in Indonesia's banking industry will be conducted with re-establishing banking structure which align with the needs of the business scale of capital, in order to enhance the ability to absorb the business risk.

In addition, Bank Indonesia will improve regulations covering, among others, about the merger, consolidation, acquisition funding banks, the requirement that agencies can acquire the bank, the role of individual owner / family, and business development requirements. Financial market deepening policies aimed at encouraging the development of financial products that can be used as an alternative to bank distribution and placement of funds in a productive manner for the real sector, especially infrastructure financing.

Thus financial markets are expected to become more liquid and banks are not so dependent on income from placements with Bank Indonesia instruments. Second, the increase in banking intermediation by improving the regulation and provision of supporting infrastructure. Regulations that will include enhanced include statutory reserves (GWM), optimization, and efficiency of bank operations, ease requirements for foreign exchange activities that may encourage lending.

Bank Indonesia will also encourage the formation of institutions that have the function of providing credit data base per sector and per region, in order to facilitate banks in assessing the risk. Third, the increasing role of Islamic banking in the national economy and strengthening resilience. Policy for Islamic banking will be taken of them by increasing the incentives to encourage increased capital, facilitating the development of sharia business unit and its subsidiary, as well as facilitate the fulfillment of the needs of human resources (HR) of competent Islamic banking.

Fourth, the increasing role of rural banks (BPR) in the financing of microfinance and strengthening resilience. These policies will be taken of them with, provide incentives to encourage increased capital, and facilitate the fulfillment of human needs competent BPR, as well as reinforce the position of BPR as a community bank.

In an effort to strengthen the role of banks as intermediary institutions, Bank Indonesia will lead banks to increase the efficiency of the banking industry. In this relationship, a move that will do is provide a reference (benchmark) the cost of funds, overhead costs, risk premium, and profit margins. Thus the bank can identify sources of inefficiency and looking for ways to improve efficiency so that setting mortgage interest rates become more reasonable.

The efficiency of the banking industry will also be enhanced by deepening financial markets. Steps to be taken such as working with a number of other agencies to assess and encourage short-term money market instruments that could become competitors of the short-term credit banks.