prolonged low global demand, and adverse feedback loops between the real economy and financial markets may engender the global economy fall into deflation. 12. the global risks of deflation are clearly much more pronounced than before, whose vicious and self - reinforcing dynamics ― in the form of higher real interest rates, falling nominal gdp, and rising unemployment ― are notoriously difficult to combat once they become deeprooted. ladies and gentlemen 13. notwithstanding headwinds from ( i ) the taper tantrum episode in 2013, ( ii ) the economic slowdown in china, ( iii ) the continued fall in commodity prices, ( iv ) the normalization of us interest rate policy, and ( v ) the increased volatility in global financial bis central bankers ’ speeches markets, the indonesian economy has thus far held up well, emerge with its economic standing intact, standing out among the fastest growing and stable emerging economies. 14. certainly, this has been made possible owing to mix of prudent and consistence monetary and fiscal policies, exchange rate flexibility – while managing to enact a comprehensive set of bold reforms, which mutually reinforce each other to bring in macroeconomic stability while nurturing stronger growth. 15. growth has continued at a solid pace and remains among the highest in emerging market. private consumption remains solid with domestic demand compensating for the slowdown in the external sector. 16. inflation is well contained at 3. 35 percent ( yoy ), which is within the target of 4±1 percent for the year. well - managed inflation expectations, lower exchange rate passthrough, and a small negative output gap, have all contributed to lowering core inflation. 17. indonesia is convincingly in an era of structurally lower inflation, in my view. this was evidently reflected from the trajectory of consumer price inflation ( cpi ) which have been converging towards core inflation. 18. the stability over growth strategy demonstrated in monetary policy tightening since mid - 2013, fuel subsidy reform, and greater exchange rate flexibility, have helped improve the external position. in 2015, the current account deficit falling to a healthy level at 2. 06 percent of gdp, from – 3. 00 percent of gdp in 2014. 19. furthermore, international reserves continued to be sufficient at us $ 105. 9 billion as of end - 2015, which is equivalent to 7. 45 months of imports and official debt repayments. ladies and gentlemen 20. going forward, indonesia ’ s economic outlook remains solid

prospect and the direction of the indonesian economy ahead. i do hope that you would share the same view. thank you. references badan koordinasi penamanan modal ( bkpm ), investment policies statement, june 2009. badan pusat statistik ( bps – statistic indonesia ), several press releases and publications. bank indonesia, various monetary policy review, quarterly monetary report and press releases. international monetary fund, world economic outlook, 2009. joint asian development bank – world bank report, improving the investment climate in indonesia, may 2005. moccero, diego. improving the business and investment climate in indonesia, economics department working paper no. 638, oecd, september 2008. mulya, budi. the need to strengthen indonesian financial market, delivered at jica ’ s seminar on “ the challenge in developing indonesia ’ s financial market ”, held in nikko hotel, jakarta, 11 december 2009. raldi hendro koestoer, promoting regulatory reform for investment in indonesia, office of coordinating ministry for economic affairs, republic of indonesia ( cmea - ri ), presented at apec high level conference on structural reform, 8 – 9, september 2004, tokyo, japan. world bank, global competitiveness report, 2000 edition up to 2009 – 2010 editions. world investment prospect 2009 – 2011, unctad. world bank, investing in indonesia ’ s institutions for inclusive and sustainable development, country partnership strategy for indonesia fiscal year 2009 – 2012, 2008.