important breakthroughs can be observed in the development of the debt market following the issuance of marketable government bond in 2002, which is not only useful to deepen the financial market but also significantly reduced the need for foreign financing and thus increase the economic resiliency. distinguished guest, ladies and gentlemen strong commitment to reforms has yielded a progressive and more resilient fundamental performance, especially in the last five years. indonesia resumed higher levels of growth and has re - emerged as a confident middle - income country as well as increasing regional and global standing as the world ’ s strongest economic performers close to those of india and china. indonesia ’ s economic growth accelerated to a 10 - year high and proven to be robust during the wake of the 2008 – 2009 global economic crisis. real gdp has been growing at 5 to 6 percent annually since 2002 and, in 2009 per - capita real gdp exceeded the level reached in 1997, immediately prior to the asian crisis. the legacy of government ’ s prudent fiscal management and a strategy of fiscal consolidation have contributed to the significant reduction in government debt levels, which are estimated to fall to 31. 5 % by end - 2009. investment share to gdp is improving though is still below pre - crisis levels. in 2009, indonesia ’ s was 23 % of gdp, or significantly improves from 19 percent of gdp in 2002 signaling a structural improvement on the business climate. increasing efficiency on the institutional framework as well as strong fiscal and monetary discipline has also been able to reduce inflation markedly and so does the exchange rate. in the financial sector, the banking sector, which account for about 80 % of the financial industry ’ s assets, is in sound shape and is relatively unexposed to developments in troubled financial markets elsewhere. indonesia has a well - developed and well - regulated banking sector and has made major advances over the past five years in establishing a sound legal and administrative framework for the modernization of public financial management in line with good international practice. on the last april 2nd, 2010, oecd upgrades country risk classification ( crc ) ranks of indonesia from the previous level of 5 to 4. indonesia was the only country of the 161 countries, given the crc upgrade in the latest oecd committee meeting session on april 2010. the main factor supporting the upgrades is indonesian impressive macroeconomic indicators as the economy is one of the most resilient amid the global financial crises and indonesia is one of the few countries that experienced positive economic growth in 2009. improvement in macroeconomic

performance and economic stability is the result of a combination of good and forward looking economic policy, ongoing structural reforms, as well as good debt management. prior to this upgrade, on march 12, 2010, standard and poor ’ s also upgraded indonesia long - term foreign currency rating to bb ( from bb – ) and long - term local currency rating stays at bb +. outlook for both are “ positive ”. the upgrade was also observe in the rank of global competitiveness as publicized by the world economic forum. on the 2009 – 2010 global competitiveness index, indonesia rank was increasing to 54 from previously 72 in 2003. the upgrade would certainly put indonesia in a better position before its creditors in negotiating, particularly export credit creditors. during the 2008 – 2009 worldwide contraction, indonesian economy still enjoyed a positive growth of 6. 0 % in 2008 and 4. 5 % in 2009 and held by high and inclusive growth of domestic demand, particularly consumption. indonesia is less exposed to external shocks than other economies in the region as its trade share to gdp is relatively small at about 50 percent of gdp. inflation is moderated and achieved year - on - year increases of only 3. 4 % in march 2010 held by adequate supply responses and rupiah exchange rate appreciation. as a result, the unemployment rate fell back from 11 % in 2005 to 7. 9 % in 2009. this development supports the fall of the poverty rate that has fallen by about one percentage point per year since 2003 and reached 15 percent in 2009. on the external balance, balance of payments is strong and achieved a current account surplus of us $ 10. 5 billion and capital account surplus of us $ 2. 3 billion in 2009. this has contributed to a sizeable accumulation of official international reserves, which to date approached us $ 71. 8 billion in march 2010, providing indonesia with a cushion against external shocks. strong fundamentals have been proven as the key cushion to the adverse impact of global economic downturn and quickly revive market risk appetite toward indonesian asset classes. the exchange rate has been appreciated about 24 % at rp9090 per us $ by the end of march 2010 from its weakest level of rp12, 020 per us $ in february 2009 on the back of net foreign capital inflows. constraint on liquidity following the recent global credit squeezing has been recovered as the counterparty risk revived quickly and the market spreads narrowed. indonesia ’ s economic outlook is favorable. growth is projected to reach the upper level of 5.