this programme must anchor the budget measures of the coming years, ensuring that the general government deficit can be reduced to below 3 % of gdp in 2013 and, subsequently, that a balanced budget can be achieved. in addition, they must seek to stabilise the public debt ratio and subsequently reduce it to below 60 % in 2020. the fiscal consolidation so defined must be considered unavoidable and necessary to restore economic growth in the medium term, although the size and timing of the adjustment required may have negative effects on activity in the short term. in an environment like the present one, characterised by the extreme sensitivity of economic agents to economies ’ fiscal situation, in particular in the euro area, any other strategy that might jeopardise the bis central bankers ’ speeches achievement of the fiscal targets in the terms established would have very negative consequences for market confidence in the spanish economy, seriously damaging its growth possibilities both in the short and in the medium and long term. by contrast, strict compliance with the commitments made may generate a virtuous circle of improvements in confidence and expectations that is conducive to the recovery. the 2012 budget for the state and the social security system, along with the budgets of the regional and local governments, are the first link in this strategic chain. it is vital that these budgets be fully consistent with achievement of the target set for the budget deficit of 5. 3 % of gdp this year, down from 8. 5 % of gdp in 2011. this reduction in the budget deficit requires an unprecedented adjustment in the primary structural deficit, since it must offset the expected increase in the interest burden and the effect that the fall in economic activity is forecast to have on public finances. the draft state budget for 2012 details the measures proposed to meet targets in the case of the state and the social security system, distributing the adjustment on both the public revenue and expenditure sides. admittedly, as i have noted on previous occasions in this house, the evidence on the effectiveness of previous fiscal consolidation processes implemented in other developed economies shows that it increases when they are concentrated on public expenditure, in unproductive expenditure. however, the scale of the adjustment required in our country is so great that we need to make use of all the instruments available, including taxes. the 2012 budget envisages an increase in revenue from tax measures falling basically on household and corporate income. also, a special charge is imposed for the regularisation of hidden assets. the revenue - raising potential of these measures is expected to

implementation will also be follow - up through cooperation between bank indonesia representative offices with the local regional police. bi efforts in the strengthening of security system ladies and gentlemen, 13. we are aware that as a strategic institution, we must have a security system that can integrate and utilize both internal and external resources to ensure the smooth implementation of bank indonesia duties. at this time we continue to strengthen the security system of bank indonesia, commonly called sispambi. 14. several security efforts referred to, among others are in the form of the division of security area classification, i. e. : limited, very limited, prohibited and closed areas. we restrict access to those areas both by access rights and escort officers. gradually, we have modernized security system devices integrated with the building security. 15. related to hr, we also continue to improve their quality and skills through various training such as reskrim / intelkam ( detectives & criminal / intelligence & security ), bis central bankers ’ speeches sar, fire fighters, security for vip, and other various training which frequently conducted in cooperation with polri. expectation with the signing of the work guidelines attendees, ladies and gentlemen 16. the signing of the work guidelines today should be able to become a good communication adhesive, an intensive coordination, and also a synergic collaboration between bank indonesia and polri, specifically korbrimob, both at central level and regional levels. we also are convinced that securing bank indonesia and escorting state - owned valuables can be run more smoothly and effectively. 17. thus this speech, may allat swt be with us always, to bless and ease our step in the future. wassalamualaikum wr. wb. bis central bankers ’ speeches