in the futures market. this is particularly the case when the guaranteed buying prices from the government are set at relatively high level compared to market - determined prices. i mentioned before that the average daily turnover in the afet now is around 400 contracts. however, the majority of the trading is heavily concentrated in the ribbed smoked rubber sheet no. 3 while the contracts for white rice are rarely traded. i cannot help but feel that the existence of the price support scheme may have contributed to this apparent lack of interests in rice futures trading. as of last friday, only 3 contracts for white rice were traded and the open interests were only for 60 contracts equivalent to 300 metric tonnes. for a country that exported 7. 6 million tonnes of rice last year - the highest volume in its history, i believe our rice futures market has high potential to grow, if conditions are right. the government guaranteed prices are set once a year and thus, do not incorporate new information into the price. on the contrary, futures contracts are traded on a daily basis and these prices are said to be the best predictor of prices in the future – pricing in all currently available information. players should be encouraged to hedge their produce through the futures market rather than through a static price - support scheme. in the medium term, the price - support scheme should be eventually phased out so that our producers would be freed to stand on their own feet. it is crucial that we implement the change gradually to enable those involved to adjust. i feel that we should strive in this direction - it is only then would our producers be able to respond to competition in the global market place. these days, many agricultural - related products in thailand are subject to price ceilings. these price control schemes coupled with the price support projects outlined above mean that the market mechanism is not well - functioning. distorted prices in the spot market may have also discouraged foreign players from participating actively in our futures markets. a freely traded spot market is a necessary condition for a successful futures market. ladies and gentlemen, i would urge the board of directors of afet and aftc, the ministry of commerce, the government, all members of afet and key players in our main agricultural products to be totally committed to making afet a highly successful futures market - an exemplar to our neighbours and one where global trading is benchmarked. we need to be strategic, prioritising our products and evaluating needs of different participating groups. i pledge my full support to this cause. i

interplay between market players ’ expectations, their self - fulfilling nature and spillover effects frequently paves the way for market exuberance in response to a trigger event. therefore, we should realize that we are definitely not out of the woods and it ’ s not going to be an easy task to be sustained. 14. beside, emerging market like indonesia still has to prepare to face a rocky and bumpy road ahead. the g20 / imf meeting last week raise concern that the balance of risks to global growth has improved, but that some hurdles along the way remain. these include the potential risk for reversal in capital flows from emerging markets to advanced economies as risk averse investors seek relatively more attractive advanced economies ’ assets. 15. and there is a risk of renewed bouts of market volatility with the expected normalization to a more neutral monetary policy stance in the united states. in either case, the result could likely lead to financial turmoil and difficult adjustments in some emerging markets, with a risk of contagion. 16. these risks if not well - managed could reawaken similar environment that have put many emerging market economy in jeopardy last year. hence, the challenges going forward for policymakers are, not only to have the right set of “ firm policy responses in place ” to deal with these short - term volatilities, but also to assure that all the market participants are well prepared for the scenarios that could be expected. 17. in this regard, i have frequently encouraged the business sector at home to manage their foreign exchange risk. in this context, bank indonesia has taken many steps to promote the use of hedging instrument including by relaxing the foreign exchange regulation. i believe, in these uncertain times where information and confidence are very important in influencing market actions, protection against the foreign exchange risks should be viewed as the foremost strategy. bis central bankers ’ speeches upgrading of the supply slide ladies and gentlemen 18. although short - term volatility has often caught us by surprise, there is a pressing need to consider longer - term issues. and to support long - term perspective, bank indonesia has set macroeconomic and financial environment to support such goal. indeed, sound macroeconomic have been instrumental in safeguarding economic stability and for some extend helping indonesia weather through numerous shocks that have come its way. 19. but, we should also not be under the illusion that sound macroeconomic practices can be taken for granted. it would be a mistake to be soothed into compl