hendar : indonesia ’ s recent economic and financial sector challenges remarks by mr hendar, deputy governor of bank indonesia, at the graduation of the stie indonesia banking school year 2015, jakarta, 14 november 2015. * * * honorable, • chairman of commissioners of financial services authority, dr. muliaman d, hadad ; • head of stie indonesia banking school ( ibs ), dr. subarjo joyosumarto ; • coordinator of kopertis wilayah iii, dr. ir. illah sailah ; • honorable faculty of stie ibs : o o o o o o drs. rachmat saleh prof. adrianus mooy dr. darmin nasution dr. kh. ( hc ) ma ’ ruf amin drs. binhadi prof. dr. h. djokosantoso moeljono ; • members of academic senate of stie ibs ; • founders of stie ibs : • managing director of lppi, dr. hartadi a. sarwono and the board of directors of lppi ; • chairman of yppi – mr. abdul aziz ; • the academic community of stie ibs, lecturers, and students ; • attendees and invitees, assalamualaikum wr. wb. 1. to start the remarks, please allow me to ask you all to praise and thank god the almighty, as only for his blessing we are able to gather here in the good atmosphere, attending and witnessing the graduation of stie indonesia banking school ( ibs ) year 2015. on behalf of the board of governor of bank indonesia and i personally, we would like to congratulate the graduates of stie ibs and the parents attending today ’ s graduation ceremony. 2. before i read the remarks of the governor of bank indonesia as the chairman of the board of curators, allow me to convey the governor of bank indonesia, bapak agus martowardojo ’ s apology for not being able to attend today ’ s graduation of stie ibs. since last thursday up to sunday, tomorrow, all members of the board of governors of bank indonesia have been and are in yogyakarta in a series of activities of the board seminar on regional financial and economic study and coordination between bank indonesia - central government - regional government in yogyakarta. such activities are a routine agenda since the beginning of 2015 as a part of bank indonesia

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