of indonesia economy. the various measures of policies are expected to create investment climate that increasingly conducive, which in turn can improve the outlook of the indonesia economy. 9. these several measures of policies have provided positive impacts, although not yet fully up to the expectation. the good news issued just last week, stating that fitch rating has given affirmation for indonesia sovereign rating with a stable outlook ( bbb - ). we should be grateful for that, it in the midst of global volatility that increases again. nevertheless, the pressure against rupiah is still not abating, although bank indonesia has done quite a lot in stabilizing the foreign exchange market. aware of the complexity of the challenge faced, we will continue what we are doing and strengthen policy coordination between institutions. confidence and positive perception 10. we are aware that it is not easy for us to go through the variety of challenges faced by the economy. however, we must remain optimistic, as history proves that we had good experiences in running the economic reformation. first, at the era pre the old order, indonesia has ever been recorded in the book of economics development written by benjamin higgins in 1963 as “ the chronic drop out ” and declared as the example of failure in managing economy. however, within 30 years, imf and the world bank declared that indonesia was one of the “ asian miracle ”, with a high and stable economic growth, a successful structural transformation, and a controlled inflation. 11. second, at the time of asia financial crisis in 1997, indonesia along with thailand and korea became the countries experiencing the worst impacts, so that it ended in political crisis and change of power. nonetheless, with the various reformation we conducted, in 2008 global financial crisis, indonesia together with china and india became the few countries surviving the vortex of the largest world economic crisis after the 1930 economic crisis, with economic growth above 4 %. 12. such experiences conveyed a message to us all that we can get through any tough challenge provided that we remain maintaining confidence and deliver positive perception that we have, are, and will conduct structural reformation. this requires synergy of indonesia incorporated, whether the government, central bank, ojk and the business world including the banking and financial sector. bis central bankers ’ speeches ladies and gentlemen, invitees and attendees, 13. in facing this challenge, in particular to face mea 2015, actors in the financial sector must prepare themselves well so as to have competitiveness and high professionalism in

##ovenije on the ecb governing council. yes, the ecb rules allow for a substitute to participate in such circumstances. slovenia is the only member of the eurozone with limits on the free movement of labour. when might it change and what effects does it have on the economy and labour market? as you know, we called for the full implementation of the single market as a major improvement of the eu economy as a whole – for all the 490 million people in the eu and 317 million in the euro area. we call also for as flexible and integrated as possible markets in europe and the euro area. i said very, very clearly that it was abnormal that labour movement for slovenia inside the euro area would be limited. it doesn't fit the integration of slovenia into the euro. slovenia's labour force should be free of any restriction inside the euro area. this is one example that i would give very strongly – to say that the economic underpinning of full freedom of movement in a single currency area is very strong. has the ecb any estimate of its own on the impact of the euro introduction on inflation in slovenia? is such an estimate more difficult in a country with a very long period of double pricing ( 16 months )? all the information i have at the moment is that the euro introduction has been a great success in slovenia and the preparation which has been done by the central bank and the government as well as the ecb and the european commission, has been very careful. to my knowledge, the success includes efficiently limiting and avoiding abnormal price increases. i don't think the long period of double pricing should make the estimate more difficult. i think it was a good idea to have a long period.