financial service authority ( ojk ), bank indonesia also strives to maintain financial stability, which together with macroeconomic stability, will provide strong ground for the country ’ s accelerated and sustainable growth. 32. the needed structural reforms itself should be targeted to address the most binding constraints. for indonesia in particular, it may include building more education facilities, providing highly competent teaching resources, as well as increasing funds for education both from government and private sector. 33. to address infrastructure problem, providing sufficient land for power plants, improving business climate for investment in infrastructure, and enhancing regional tax collection, as well as public private partnership to raise funds for infrastructure projects can become priority policies to implement. ladies and gentlemen, going forward 34. let me reiterate that a good balance of monetary policy, fiscal policy and structural reform will altogether bring out a policy mix that will take the country many steps forward toward faster and more sustainable growth. lessons from countries that are successful in implementing structural reforms to boost their economic growth such as china and india, will be especially valuable. 35. let me also express my special appreciation for the successful collaboration between adb and bi in producing a joint book entitled “ growth diagnostic of indonesia. ” i am looking forward to the launching of the book, which i am certain will provide valuable insight to all of us. 36. as a final note, i would like to wish you a pleasant and fruitful experience during this one day seminar. i believe that ideas, insights, and experiences shared among international and domestic experts as well as the audiences during the sessions will contribute to better understanding on the important topic of growth diagnostic, and bring refreshed ideas for policy formulation and priorities. thank you. bis central bankers ’ speeches

agus d w martowardojo : growth diagnostic for indonesia – focusing on human capital and infrastructure keynote speech by mr agus d w martowardojo, governor of bank indonesia, at the bank indonesia - asian development bank international seminar “ structural reform in emerging asia ”, jakarta, 23 march 2016. * * * distinguished speakers, seminar participants, ladies and gentlemen, good morning. 1. it is such a pleasure for bank indonesia to host this international seminar jointly organized with asian development bank, and i am very delighted to welcome you all to this event. 2. i find the theme of this seminar “ structural reform in emerging asia ” both relevant and important for all of us today, with the global economy still in a state of growth deficit, and the future path seems to look bleak if not uncertain. 3. i believe that the seminar will provide a great opportunity to discuss how structural reform can provide a breakthrough which accelerates growth, and make it more sustainable and inclusive. the discussion will also be a good platform for sharing of experiences on the implementation of structural reforms in various countries, and from that we can draw valuable lessons. 4. i am also excited to know that the seminar has been preceded by a technical workshop on issues surrounding the similar topic, particularly the use of growth diagnostic method and relevant economic models to identify the growth most binding constraints and the needed policy reforms. ladies and gentlemen, global and indonesia ’ s recent economic development and challenges 5. entering 2016, the global economy continues its period of uncertainty that has lingered since the global financial crises in 2008. with global growth declining and inflation remaining low, another sign of ambiguity in the global economy emerged, which is divergence of economy and monetary policies among major economies. 6. pressures in the financial market in the beginning of 2016, in the middle of uncertain bottoming - up of oil prices, have added to concerns about global growth. conversely, the deteriorating macroeconomic outlook and worries about medium - term vulnerabilities in the global economy have unsettled financial markets. with financial institutions under renewed pressure, adverse feedback effects between finance and the real economy could become significant. 7. the emerging economies have once withstood the recent global economic turmoil by taking advantage of credit - fuelled growth as a spillover effect from large accommodative monetary policy in advanced economy. what may happen next after the recent normalization of us monetary policy and china ’ s current economic rebalancing process could be a heightened pressure