from 1998 crisis as i just mentioned, indonesia is now structurally different with what was in a decade ago. this is as a result of more than ten years of consolidation and dynamic transition in almost all sectors. the extensive transformation measures became a continuing agenda with full commitment. in the last ten years, we have embarked upon a far - reaching transformation measures, especially in the area of improving our institutional capacity. during this process, the government has taken steps to improve our economic efficiency through policy reform packages covering key areas of concern, such as taxes, customs, legal frameworks, and the financial sector. so to speak, one of the most notable steps are the introduction of open capital account through promulgating law no. 24 of 1999 and increasing the investment flexibility by stipulating investment law no. 25 of 2007 to encourage offshore financing for the economy. the government and bank indonesia, as a central bank, are always committed to consistently undertake fiscal and monetary discipline, as well as strengthening domestic financial market resiliency. learning from the failure of 1998 crises, our policies were focused on enhancing policy transmission, improving financial market efficiency through prudential practices and financial market deepening. the government is also improving their capacity on fiscal budgeting by adopting a better debt and cash management. prudent fiscal policy can partly be observed by gradually reducing the debt to gdp ratio, in particular the foreign debt. the debt to gdp ratio has declined significantly within the last couple of years, from 77 % in 2000 to around 30 % recently. from a monetary policy perspective, bank indonesia has consistently pursued rupiah stability as mandated by the new bank indonesia law that was first introduced in 1999. in practice this has been manifested in an effort to focus on achieving the medium term ( three years ) inflation target set by the government and avoiding excessive exchange rate volatility consistent with the free exchange rate regime adopted since 1998. on this regard, bank indonesia has increased the transparency and clarity of its monetary policy stance by introducing “ the bi rate ” as a policy rate since june 2005. further improvement has also been undertaken in mid of 2008 by translating the bi rate as a short - term money market interest rate target ( known as puab overnight target ). thus, puab overnight has been used as an operational target in executing the monetary policy decision through bank indonesia ’ s domestic market operation. the main reason behind this enhancement is based on two reasons. first, the increasingly importance of agents ’ expectation in forming inflation along with the

housing market. for the inflation target to be achieved on a sustained basis in 2016, the economy must reach and remain at full capacity. closing the output gap over this time frame is reliant on continued stimulative monetary policy and hinges critically on stronger exports and business investment. weighing these considerations within the bank ’ s risk - management framework, the monetary policy stance remains appropriate and the target for the overnight rate remains at 1 per cent. the bank is neutral with respect to the timing and direction of the next change to the policy rate, which will depend on how new information influences the outlook and assessment of risks. and now, with that, carolyn and i would be pleased to answer your questions. bis central bankers ’ speeches