in - hand to design a better institutional arrangement, tools and instruments to promote effective monetary and macro - prudential policy. in line with that, it is also agreeable that the high level committee of the islamic financial services board ( ifsb ) members called for the islamic financial system to strengthen regulatory and liquidity infrastructures as well as building a healthy and beneficial linkage to the real sectors. bis central bankers ’ speeches excellencies, ladies and gentlemen, besides all the advances in monetary and macro - prudential policies to strengthen financial stability, we are at the stance that structural policies is also crucial in supporting financial system resillience. lesson from the 1997 / 1998 crises, we learned that micro and small enterprises were relatively resistant to economic shocks, giving significant contribution to financial and economy recovery. hence, structural policies need to be promoted to advance wealth distribution to more people, particularly low - income class. in regard to this concept, islamic social sector that covers zakat and awqaf systems can play very important role in accelerating economic development and supporting financial stability. in indonesia, as studied by bank indonesia ’ s researchers in 2012, total of all zakat potential from various sources is approximately rp217 trillion or equivalent to usd22. 6 billion. this number is equal to 3. 4 % of indonesia ’ s 2010 gross domestic product ( gdp ). however, the realisation of those potential zakat is still below our expectation. recent data recorded only rp2. 7 trillion or 1. 2 % of total zakat potential has been received. this is our home - work to explore ways to boost this number. unlike the other commercial sources of fund, the zakat funds would never cause unnecessary burden to the economy since the type of the funds is not commercially claimable, and hence, no excessive social cost will occur. the same also goes to the awqaf sector where, as a matter of fact, more people are endowed with low cost assets. again, potential benefits from those assets has not been materialized yet, because most of the assets are still poorly managed. based on data from indonesian awqaf board, awqaf land has now reached not less than four billions of meter square, a very significant source if we can optimized them. with this huge potential of zakat and awqaf land, we can expect a significant drive to economic development. i personally believe that these ideas are in - line with those of the governments, as well

##prudential measures. yet we should not overestimate their effectiveness. in my view, monetary policy cannot close its eyes to financial stability, as suggested by those purists who favour a strict “ principle of separation ”. instead, i favour a form of intelligent coordination, and that will be one of the challenges for our next strategic review. monetary policy must remain accommodative but it also has to be more attentive. the necessary follow - up with fiscal and structural policies the second limitation is again a humble truth. as we have seen, monetary policy has gone beyond the call of duty. but it is not – now less than ever – omnipotent, and it cannot perform miracles. monetary policy has no influence page 13 of 14 over the structural changes that are behind the exceptionally low level of the natural interest rate. to fix the euro area ’ s investment dearth – both in the private and public sector – relative to its savings surplus, structural growth policies are needed that boost innovation and productivity. it also means making more appropriate and differentiated use of fiscal policies. in this regard, the euro area is underusing its fiscal space : its public debt ( 84 % ) and deficit ( 0. 9 % ) are lower than those of the united states ( 106 % and 5. 6 % ) or japan ( 238 % and 3 % in 2019 ). source : imf fiscal policy, especially in those european countries with a surplus, needs to be exploited more actively and selectively. germany has opened the debate ; the netherlands have shown the way with the announcement of the creation of an investment fund for the future. low rates, here and elsewhere, can provide an opportunity to finance investments if – and only if – those investments deliver increased potential growth : the ecological transition, digitalisation, education and research. for that, we need – finally! – to focus our fiscal debate on the quality of our spending and investment, and not just on its quantity. at the european level, we have considerable borrowing capacity : we should use it, as soon as we know how to choose these priorities properly, beyond the success of the juncker plan or of investeu. * * page 14 of 14 i shall conclude with a more “ philosophical ” consideration : interest rates are also the price of time. my generation created the euro and tried to tackle the financial crisis. yours is inheriting a world that is equivocal, to say the least : the positive explosion of