for housing is not recovering yet. on the second half of last year, with the fiscal stimulus and monetary easing, the domestic demand will keep a pace and it will be so for demand for bank lending. we are seeing now increasing demand for lendings to government project related activities, but we will be seeing increasing demand for bank loans to other economic sectors as domestic economic growth becomes more broad based. final remarks i have shared my optimisms about positive indonesian economic outlook this year and the years ahead. economic growth will be higher, and macroeconomic and financial stability will be sound. there are some risks, of course, that we need to closely monitor and address, e. g. ffr increases, china factors, commodity price declines, and fiscal revenues. this is the time for indonesia to move forward, and we will. all the three policy mix at the national level, i. e. fiscal stimulus, monetary easing, and accelerated structural reforms, are reinforcing to support higher economic growth. we know it, and investors see it. that is why investors already make differentiation of their views and valuations among emerging countries, where indonesia as one of the promising economies. that will support for the better indonesia to the future. hope i bring more optimisms to you. i thank you. bis central bankers ’ speeches

products which truly confirms to sharia principles, complemented by appropriate legal framework, regulations and standards, insya allah, this creation of “ genuine ” islamic financial system would be able to reduce systemic risks and continue to become resilient to any financial shocks. as mentioned earlier that increasing portion of profit - loss sharing transaction will reduce the potential bubble in the economy and decoupling problem between financial sector and real sector. the fourth point is about “ real rate of return ” references. besides beneficial in creating and maintaining stability, we also believe that profit - loss sharing, the spirit of islamic finance, bis central bankers ’ speeches would give more fair return to all parties ( funds owner, financial institution, and borrower ). the return distributed to all parties should be a real result of business activities in the economy. however, at the moment, islamic financial institutions seemingly tend to refer their rate of return to conventional rate of return ( interest rates ). conceptually they should refer to the real rate of return in the economy. unfortunately, currently there is no valid reference available about the real rate of return. therefore, international islamic institutions and countries regulator need to collaborate to study about the real rate of return that will become a reference for islamic financial institutions in determining return, instead of referring to conventional interest rates. ladies and gentlemen, beside those four main issues, i would like also raise two additional challenges regarding liquidity and human resources. most of us aware that currently islamic financial markets have limited instruments and restricted access to short - term funding options in raising liquidity as compared to conventional markets. we should think of methods to enhance islamic liquidity market based on contracts consistent with sharia principles. a caveat for such initiative will be, to carefully identify and structure the instrument for the purpose of raising liquidity only and not for the tools for speculation. the emergence of global money market will reduce the reliant of islamic financial institutions in mirroring the techniques regularly use by conventional banks that are still within the grey area and debatable in terms of its sharia compliancy. hence, islamic finance can maintain its reputation as the sector linking financial intermediary and real sector and slowly close the door to a heavy use of leverage that once led to global financial crisis. related to human resources issues, we understand that the fast growth of islamic financial institutions so far isn ’ t followed by sufficient supply of human resources. in indonesia context, the tremendous acceleration of islamic finance industry has created human resources supply