BIG DATA APPLICATIONS IN MONETARY POLICY AND FINANCIAL STABILITY FOR

2 The SEACEN Centre Big Data Applications in Monetary Policy and Financial Stability for SEACEN Member Economies: The Case of Bank Indonesia 1.4 The Role of Bank Indonesia in Encouraging the Development of Big Data As a SEACEN member, Bank Indonesia has been encouraging the development and utilisation of Big Data analytics since 2015. [...] These issues concern the definition of Big Data by the central bank, the level of implementation of Big Data, the area of application of Big Data at the central bank, and the challenges of using Big Data at the central bank. [...] 3 Big Data Developments in Bank Indonesia 3.1 The Benefits of Big Data in Supporting Policy Formulation Big Data has several characteristics known as the 5V, i.e., volume (on account of the enormous data size), velocity (due to the high-speed accumulation of data), variety (considering the diverse data types and formats), veracity (meaning the accuracy and reliability of the data), and value (the. [...] 3.4 Bank Indonesia Co-operation with Various Parties to Support Big Data Development One of the challenges in the development of Big Data analytics is the availability of data sources and the historical continuity of the data. [...] The co-operation is set forth in a Non-Disclosure Agreement (NDA) between Bank Indonesia and the data providers, which includes the type and structure of the data exchanged, the delivery period, as well as the rights and obligations in order to maintain the confidentiality of data from each party.