can be tapped if needed will be national budgets and the existing esm facilities. direct bank recapitalisation via the esm will – with the exception of very rare and unlikely cases – only be available once the ssm is fully operational. however, building the ssm ’ s credibility requires more than just transparency on banks ’ asset quality. markets also need to be confident that, in the future, the supervisor can “ pull the trigger ” on banks that are failing or likely to fail. this means that there must be a mechanism that can wind down banks without causing financial instability. and this is why the srm is also an essential element of banking union. bis central bankers ’ speeches in our view, the srm should comprise of a european resolution authority backed by a single resolution fund. the rationale for this mainly concerns dealing with large, cross - border banks. for resolving these institutions, a central authority that can make swift, impartial decisions is key. moreover, we need shared resources at the european level to avoid protracted wrangling between national governments on how to share the costs of resolution. these resources, however, would not come from the taxpayer. the resolution fund would be financed provided by ex ante risk - based levies on the banking sector. in the build - up phase, any public support would be recouped by additional ex post levies on banks. this is consistent with the emerging consensus in europe, also reflected in the brrd, that the financial sector itself should pay for the cost of crises. indeed, when the relevant provisions of the brrd enter into force, bail - in will be used as the primary tool to recapitalise banks falling below minimum supervisory levels. it is therefore important that we agree on an approach to bail - in that allows some but limited flexibility to ensure financial stability, while still providing an ex ante pecking order and clear rules. global investors need certainty about the rules of the game in europe. as regards the date when the brrd will enter into force, i believe that starting as early as 2015 will provide more clarity and legal certainty for investors than delaying the new regime until 2018. and since market participants will most likely anticipate the new rules even if the later date is chosen, we may as well aim at 2015 for the brrd to enter into force. why is a common deposit guarantee scheme not also on the agenda? the reason is that a strong resolution framework lessens the need for

policy synergies that will be implemented by the bank indonesia ’ s internal strengthening economic prospects government and bank indonesia will likely characterize our economy ’ s prospects. the global economy that has yet to strengthen as well as our efforts to build the domestic economy ’ s foundation so as to become resilient and sustainable, will likely affect economic growth achievements in the short - term. however, in the mediumterm, we believe our economy will grow faster as it is supported by a stronger and better economic structure. in 2017, we estimate economic growth to reach 5. 0 - 5. 4 %, supported mainly by domestic demand. the benefits of various potential that we had previously revealed will affect private sector business confidence and appetite. private sector confidence to revive activities amidst the looming weak global economy will be the determinant for an accelerated economic growth. meanwhile, inflation will remain within the target range of 4. 0±1 % in 2017, which is in line with bank indonesia ’ s commitment to drive inflation within its target range. with these economic prospects, we estimate that bank credit and deposits growth in 2017 will arrive at 9 - 11 % and 10 - 12 % respectively. meanwhile, the current account deficit is expected to increase slightly in line with the intensification of infrastructure projects, but will remain within a healthy level of below 3 %. through stronger resilience, the economy in 2017 will become the turning point for a more solid economic growth. the implementation of structural reforms will serve as the basis for more solid economic growth in the medium term. structural reforms that were implemented will enhance productivity thereby allowing the economy to grow to a higher level. this higher growth and improved structure in turn will enhance employment and prevent the economy from the middleincome trap. on this basis, we project economic growth within the 2018 - 2021 period will be on an upward trend and arrive at 5. 9 - 6. 3 % in 2021 through the support of low and controlled inflation. meanwhile, the current account deficit is expected to be trend down and remain within a healthy level of below 3 %. we are confident that the policy synergy to accelerate economic transformation can bring the economy to grow healthier, inclusive, as well as sustainable. optimizing potential, strengthening resilience bank indonesia ’ s annual meeting 2016 conclusion these are bank indonesia ’ s 2017 policy ideas and direction that we can convey in this opportunity. we would like to extend our appreciation and gratitude to all members of bank indonesia ’ s board