2.1.1 Concepts and definitions

Analytical Accounts of the Banking Sector is the consolidation between the Analytical Balance Sheet of Bank Indonesia and the consolidated Balance Sheet of Commercial Banks and Rural Banks. This consolidation is defined as the Balance Sheet of the Monetary System. The liabilities show money supply representing liabilities of the Monetary System to private sector (residents). The assets show factors affecting money supply consisting of foreign sector (net), government sector (net), claims on private sector and other items (net).

• The Monetary System is a group of bodies that has authority to issue, create and affect money supply. Monetary System consists of monetary authority and all banks that are allowed to accept demand deposits (commercial banks as well as rural banks).
• The Analytical Balance Sheet of Bank Indonesia refers to Analytical Accounts of the Central Bank.
• The Consolidated Balance Sheet of Commercial Banks and Rural Banks is the consolidation of individual balance sheet of commercial banks and rural banks located in Indonesia.

Money aggregates is a monetary liability of Monetary System to the domestic nonbank sector. Money supply can be defined as narrow money (M1) or broad money (M2).

• Narrow money (M1) is a liability of Monetary System, consisting of currency (banknotes and coins) in circulation and demand deposits at commercial banks and Bank Indonesia.
• Broad money (M2) is a liability of Monetary System to the domestic non-bank sector covering currency, demand deposits, time and savings deposits, and securities other than shares.
• Demand deposits are deposits owned by the domestic private sector at commercial banks which can be cashed any time at nominal value. Demand deposits consist of residents' holdings of transferable deposits in Rupiah at commercial banks. As of today, rural banks are not allowed to accept deposits in the form of transferable deposits.
• Quasi money consists of time and savings deposits of domestic private sector at commercial banks and rural banks. It has various monetary attributes, such as the ability to act as a unit of account, a store of wealth, and a mean of payment. In accordance with the definition, quasi money includes time and savings in rupiah; and demand and time deposits in foreign exchange.
• Securities other than shares are negotiable instruments serving as evidence that units have obligations to settle by means of providing cash, a financial instrument or some other item of economic value. Securities other than shares with 1 year remaining maturity are included in broad money.
• Net Foreign Assets is the net difference between Monetary System's claims and liabilities to foreign sector (non-residents).
• Net Claims on Central Government are difference between claims and liabilities of Monetary System to central government. Central Government includes institutions whose financing is provided by the budget, as well as institutions involved in the production of goods and services that may be provided for free or sold at prices that are not economically significant.
• Claims on official entities and state enterprises are claims of Monetary System on government agencies and other institutions. Government agencies and other government institutions are institutions established/founded by government regulations and whose financing is not part of central budgetary account (state budget) and regional budgetary account.
• Claims on private sector are claims of Monetary System on private sector (companies and individuals).

2.3.1 Classification/sectorization

The accounting methods are in line with the International Accounting Standard (IAS).

2.2.1 Scope

Scope of the data

• Transactions coverage: M1, M2, net claims on government, claims on official entities and state enterprises, claims on private sector and net foreign position originated from Balance Sheet of Monetary System (consolidation between Analytical Balance Sheet of Bank Indonesia and consolidated Balance Sheet of commercial banks and rural banks).
• Institutional coverage: the analytical accounts of the banking sector cover the operations of the central bank, the commercial banks as well as rural banks.

2.4.1 Valuation

Central bank’s data:

- Revaluation of the foreign currency denominated accounts is based on the weekly Balance Sheet exchange rate.

- The financial asset and liability are valued according to BI’s Accounting Standards

Commercial Banks’ data:

- Revaluation of the foreign currency denominated accounts is based on Reuters currency exchange rate by the end of the reporting period.

- The financial asset and liability are valued according to banking reports valuation methods, which comply to National Financial Accounting Standards (PSAK) 50 and 55 as a representation of IAS 39.

2.4.2 Recording basis

Financial asset and liability are recorded on an accrual basis.

2.4.3 Grossing/netting procedures

The data are presented on a consolidated basis.

3.1.1 Source data collection programs

• The Analytical Balance Sheet of Bank Indonesia is prepared on a daily basis by consolidating all balance sheets of Bank Indonesia offices (administrative record).
• The Consolidated Balance Sheet of Commercial Banks is prepared by consolidating the balance sheets of all reporting commercial banks' head offices and branches (excluding branches abroad). Banks submit the monthly report every 12th day of the following month, from July 2010 until December 2010 data, this report receives by Bank Indonesia on the 15th day of the following month, and since Januari 2011 data, this report receives by Bank Indonesia on the 5th day of the following month.
• The Consolidated Balance Sheet of Rural Banks is prepared by consolidating the balance sheets of all reporting commercial banks' head offices and branches

3.1.3 Source data timeliness

The data collection programs provide for the timely receipt of data and met the SDDS requirements.

3.2.1 Source data assessment

The Balance sheets of all Bank Indonesia offices are transmitted online to Bank Indonesia head office.

Balance sheets of Commercial and Rural Banks are are submitted to Bank Indonesia head office by online using extranet system.

3.3.1 Source data statistical techniques

• Data compilation procedures are sound.
•  Appropriate measures are taken to adjust the source data.

3.3.2 Other statistical procedures

There is no seasonal adjustment.

3.4.1 Validation of intermediate results

• Intermediate results are validated against other information where applicable.
• Secondary data sources are also used to verify the data in the other depository corporations’ survey.

3.4.2 Assessment of intermediate data

Statistical discrepancies in intermediate data are assessed and investigated, such as the behavior of series is routinely assessed against related series.  If, major changes occur, the data will be reconfirmed to the reporting agencies.

3.4.3 Assessment of discrepancies and other problems in statistical outputs

As needed, procedures are in place to investigate classification/sectorization errors or omissions as a source of fluctuations or discrepancies.

3.5.1 Revision studies and analyses

Bank Indonesia never publish a preliminary monetary statistics, however, if needed, revisions resulted to misreporting of large/significant financial transactions of commercial banks will be made.

4.3.3 Dissemination of revision studies and analyses

Users are informed of results and studies of the revisions to the statistics

5.3.1 Dissemination of information on contact points

For further/detail information, user could contact smkf@bi.go.id