agus d w martowardojo : maintaining financial stability amid continued economic growth deceleration keynote speech by mr agus d w martowardojo, governor of bank indonesia, at the discussion and launching of the financial stability review book, jakarta, 10 december 2015. * * * honorable, our predecessors governors of bank indonesia, members of the board of governors of bank indonesia, officials in the ministries and state agencies, banking leaders representatives of industry associations academicians and economic observers attendees and invitees, assalamu ’ alaikum warahmatullahi wabarakatuh, good afternoon and best wishes to us all, first of all, let us pray our praise and gratitude to allah swt, the god almighty for only upon his grace and blessing, we can all gather here in good health to participate in the discussion and launching of the book on financial stability review ( kajian stabilitas keuangan - ksk ) no. 25, september edition year 2015. the development of this ksk constitutes a part of the transparency and accountability of bank indonesia ’ s duty implementation in the field of macro - prudential. as one of the routine semester publications, ksk contains the results of assessment and review of bank indonesia toward the condition of the national financial system. such assessment also covers our monitoring to the sources of vulnerability and imbalance of the financial system that can be found in the financial markets ; financial agencies / institutions, namely households and corporates ; banking ; and non - bank financial institutions ( institusi keuangan non - bank - iknb ) ; and also financial infrastructures. due to the deceleration of economic growth experienced by indonesia, it is critical for bank indonesia as the authority in the field of macro - prudential to continue maintaining the stability of financial system. especially, as the dynamics of the global financial system continue to remain under uncertainties. therefore, the edition of ksk this time takes up the theme of “ maintaining financial stability amid continued economic growth deceleration ” we are convinced that our duty in maintaining the stability of economy will be more challenging. hence, we expect that depth assessment and review on the condition of national financial system will be a valuable reference for us in taking measures in the future. ladies and gentlemen, the condition of indonesia ’ s financial system in 2015 in general is still overwhelmed by various challenges and fluctuations, both sourced from global and domestic. the still weak global economic recovery, the continued declining price of

financial service authority ( ojk ), bank indonesia also strives to maintain financial stability, which together with macroeconomic stability, will provide strong ground for the country ’ s accelerated and sustainable growth. 32. the needed structural reforms itself should be targeted to address the most binding constraints. for indonesia in particular, it may include building more education facilities, providing highly competent teaching resources, as well as increasing funds for education both from government and private sector. 33. to address infrastructure problem, providing sufficient land for power plants, improving business climate for investment in infrastructure, and enhancing regional tax collection, as well as public private partnership to raise funds for infrastructure projects can become priority policies to implement. ladies and gentlemen, going forward 34. let me reiterate that a good balance of monetary policy, fiscal policy and structural reform will altogether bring out a policy mix that will take the country many steps forward toward faster and more sustainable growth. lessons from countries that are successful in implementing structural reforms to boost their economic growth such as china and india, will be especially valuable. 35. let me also express my special appreciation for the successful collaboration between adb and bi in producing a joint book entitled “ growth diagnostic of indonesia. ” i am looking forward to the launching of the book, which i am certain will provide valuable insight to all of us. 36. as a final note, i would like to wish you a pleasant and fruitful experience during this one day seminar. i believe that ideas, insights, and experiences shared among international and domestic experts as well as the audiences during the sessions will contribute to better understanding on the important topic of growth diagnostic, and bring refreshed ideas for policy formulation and priorities. thank you. bis central bankers ’ speeches