euro area, the governing council welcomes the reaffirmed commitments of the governments of euro area countries with fiscal imbalances to adhere to the objective of achieving balanced budgets by 2003 - 2004. the confirmation of the political will to continue along the path of fiscal consolidation is most appropriate. the governing council supports the actions taken by the european commission in the context of the stability and growth pact and the subsequent outcome of the ecofin council meeting last month. it is now necessary to remain vigilant in order to ensure strict adherence to the medium - term plans and rigorous implementation of the procedures of the stability and growth pact. in order to further improve the fundamentals of the euro area and to put the expected recovery on a broad and sustainable basis, euro area countries must strengthen their efforts to implement comprehensive structural reforms. over the past few years progress has been made with regard to enhancing the flexibility of euro area product and capital markets. euro area countries have also made some headway in terms of improving the way their labour markets operate. these reforms, together with moderate wage developments, have contributed to the strong employment growth and the considerable reduction in unemployment witnessed in many euro area countries in the last cyclical upswing. however, it is worth noting that despite the continued high unemployment in the euro area, firms continue to report difficulties in terms of recruiting suitably qualified workers. this suggests that further improvements in the functioning of euro area labour markets and their ability to match labour supply and demand are needed. evidence gathered in a recent eurosystem analysis, which will be published shortly, supports this view. in this context i would also like to stress that structural reforms in different markets should not be seen in isolation. the more efficiently euro area product and capital markets function, the greater the success of labour market reforms will be in creating employment opportunities. we are now at your disposal for questions.

has been happening so far, is that the financial industry must always be closely linked with the real sector activities, the fundamental economic. the indonesian economy and financial industry during turmoil as in some emerging economies, indonesia essentially has quite a strong fundamental, and much better compare to what was during 1997 / 98 asian crisis. however, as i previously mentioned the crises that caused global economic growth slump and the international trade volume squeeze, as well as a high degree of uncertainty that surrounded the international financial market has also weakened the domestic economic activities. yet, the economy is still able to expand. the indonesia ’ s economy grew at 6. 1 % in 2008. the indonesian economic growth reached the bottom in quarter ii 2009 at 4 %, a 0. 4 % drop from previous quarter of 4. 4 %. we expect that the indonesian economy will grow at 4. 0 to 4. 5 % in 2009, higher than previously estimated. the domestic economic growth is mainly supported by domestic demand which contribute more than 60 % of gdp and natural resources export. in 2010, we expect the economy will grow at 5 % to 5. 5 %. along with declining domestic economic activities in 2009, inflation rate has also descended. as of september 2009, the year to date inflation rate is 2. 28 %. inflation is expected back to its normal pattern in 2010 at 5 + / - 1 % as economic activities start accelerating. in addition, the domestic banking industry is also in relatively sound condition and well capitalized. the average capital adequacy ratio ( car ) is around 17 % and the gross nonperforming loan ( npl ) ratio is below 5 %. those facts show that the indonesian economy is relatively sheltered from the biggest turbulence since the world ’ s war ii. however, foreign investors tend to undermine those facts, and perceived risks exaggeratedly on the indonesian economic fundamental. despite that, it was true that the crisis caused panic and lost of confidence, in particular post lehman brothers collapsed on 15 september 2008, which led to the phenomenon of holding cash alike and safe haven assets, it has put significant pressure on indonesian economy and increasing volatility in the domestic financial market. risk perception on the indonesian financial market has been so high as shown in the hike of cds spread, that reach a peak of around 1000 bps in october 2008, the highest spread amongst countries within the region. further, the exodus from emerging market financial assets, led the government bond ( sun ) price index ( idma index )