Bank Indonesia (BI) (Photo: Antara)

Jakarta (VNA) – The Bank Indonesia (BI) - the central bank - has made optimum use of big data to formulate policies expected to speed up the national economic growth, said BI Deputy Governor Erwin Rijanto.

By taking advantage of big data, the BI is able to predict something more accurately and quickly, Rijanto said after opening an international seminar on big data in Bali.

Rijanto said nearly 30 percent of the world’s central banks, including the BI, have used big data to build policies. These policies are related to monetary and macro-prudential analyses, financial system stability, information needs and new researches, he said.

The other advantages of big data are new indicators which enable the central banks to map the linkage of financial institutions through a network analysis to mitigate the systemic risks of the financial system, Rijanto said.

In addition, big data will also enable their users to identify economic behavior through the analysis of transactional data and unstructured data such as news stories and social media, he said.

According to the official, the BI can also monitor public expectation and perception of the bank’s policies more accurately.

However, the main challenges of taking advantage of big data are related to the exploration of big data and complicated process, not to mention good governance, time and human resources, he said.

Big data refers to voluminous amounts of structured or unstructured data that organizations can potentially mine and analyze for business gains.-VNA