6. 1 – 6. 2 % per year ( figure 5 ), one of the highest in the world. 13. in addition to the expanding middle class population, the resilience of the domestic economy is also sustained by the stable and conducive macro and financial environment, therefore providing space for a broad - based economic expansion. in my view, this achievement is inseparable from the solid and well - coordinated fiscal, monetary, and banking policies that are built based on prudence and discipline. 14. the economist, in its november 10, 2012 issue, presented an interesting analysis describing the new era of great moderation in asia. the magazine applauded indonesia for having the most stable economic growth within the last twenty quarters in world economy. 15. the magazine also acknowledged indonesia as a pioneer in implementing monetary and macro prudential policy mix. through an effective policy mix, indonesia is deemed capable of mitigating credit risks and preventing capital outflows without having to raise interest rate. bis central bankers ’ speeches 16. the central bank ’ s policy of preemptive easing, according to the magazine, has significantly contributed to maintain economic growth stability. since october 2011, bank indonesia has become the first central bank in asia to lower its policy rate. 17. in my view, this magazine ’ s review has revealed a fresh reference on the fact that macro management relying solely on prudence and discipline is insufficient. at the end of the day, it remains true that the policy is more of an art rather than a science. distinguished ladies and gentlemen, 18. while growth can be maintained at a high level, the inflation rate in recent years has in fact shown a downward trend towards the medium - term target of 4. 0 percent. likewise, the rupiah in the past three years have also been moving in line with the fundamental condition. 19. on the one hand, the achievement of a low inflation and stable exchange rate has created conducive climate for the resilience of the banking industry. on the other hand, the well - proven resilience of our banking industry is able to become a shock absorber for the economy. this is supported by adequate capital strength to absorb various risks, as well as effective regulation and supervision. 20. with improved resiliency, the banking intermediation is on the right track. this is reflected in the relatively strong growth of productive loan, while keeping the non - performing at a low level. the

of indonesia economy. the various measures of policies are expected to create investment climate that increasingly conducive, which in turn can improve the outlook of the indonesia economy. 9. these several measures of policies have provided positive impacts, although not yet fully up to the expectation. the good news issued just last week, stating that fitch rating has given affirmation for indonesia sovereign rating with a stable outlook ( bbb - ). we should be grateful for that, it in the midst of global volatility that increases again. nevertheless, the pressure against rupiah is still not abating, although bank indonesia has done quite a lot in stabilizing the foreign exchange market. aware of the complexity of the challenge faced, we will continue what we are doing and strengthen policy coordination between institutions. confidence and positive perception 10. we are aware that it is not easy for us to go through the variety of challenges faced by the economy. however, we must remain optimistic, as history proves that we had good experiences in running the economic reformation. first, at the era pre the old order, indonesia has ever been recorded in the book of economics development written by benjamin higgins in 1963 as “ the chronic drop out ” and declared as the example of failure in managing economy. however, within 30 years, imf and the world bank declared that indonesia was one of the “ asian miracle ”, with a high and stable economic growth, a successful structural transformation, and a controlled inflation. 11. second, at the time of asia financial crisis in 1997, indonesia along with thailand and korea became the countries experiencing the worst impacts, so that it ended in political crisis and change of power. nonetheless, with the various reformation we conducted, in 2008 global financial crisis, indonesia together with china and india became the few countries surviving the vortex of the largest world economic crisis after the 1930 economic crisis, with economic growth above 4 %. 12. such experiences conveyed a message to us all that we can get through any tough challenge provided that we remain maintaining confidence and deliver positive perception that we have, are, and will conduct structural reformation. this requires synergy of indonesia incorporated, whether the government, central bank, ojk and the business world including the banking and financial sector. bis central bankers ’ speeches ladies and gentlemen, invitees and attendees, 13. in facing this challenge, in particular to face mea 2015, actors in the financial sector must prepare themselves well so as to have competitiveness and high professionalism in