who will be deliberating current and critical issues in supervision and banking in this post crisis era. 21. i believe there is no right or wrong when discussing frameworks for effective supervision and banking regulation. the effectiveness of the agreed standards depends on many aspects and that there is no 5 of 6 one - size - fits - all approach. as many have said : “ economics is the only field in which two people can get a nobel prize for saying the opposite thing ” is true. 22. before i close my welcome address, allow me to offer my warmest welcome to you all and express my deepest gratitude to your visit. i hope you will make the most of your stay in bali and take home with you warm memories of your visit. 23. i would also like to remind you that indonesia will be hosting imf – world bank annual meeting on october 2018 in this beautiful island of bali. i would like to invite you to visit bali, not only to attend the workshops, but also to participate in a series of activities in connection to the annual meeting. please save the date, and mark your agenda. thank you. 6 of 6

building resilient financial institutions. the first element of reforms centered on the basel iii package. the quality and level of capital has been increased and new standards for liquidity has been introduced. in addition, leverage has been constrained and explicit macroprudential dimension has been introduced. 7. although we started a year late, basel iii implementation in indonesia has been in accordance with bcbs phase - in arrangements since 2014. i am pleased to inform you that indonesian banks are not facing significant challenges, especially with regards to the capital reform, due to the high levels of capital ratio dominated by common equity tier 1. indonesia has also 2 of 6 implemented the countercyclical capital buffer and capital conservation buffer in addition to the minimum capital requirement. 8. in terms of liquidity coverage ratio, banks that are required to adopt the standard have no major difficulties complying. nonetheless, we continued to monitor the long run impact of the requirement. 9. ending too - big - to - fail. the next core element is ending too - bigto - fail. a set of measures, known as the systemically important financial institutions ( sifi ) framework, has been introduced. 10. although indonesia is not home jurisdiction of the global systemically important banks, a number of domestic banks are required to meet capital surcharge that varies between 1 % to 2. 5 % to reflect their systemic importance in the domestic financial system. 11. indonesia has also passed the law on prevention and resolution of financial system crisis in april 2016. the law enables related financial stability authorities to implement a more rigorous banking regulation and supervision, particulary for domestic systemically important banks, including the provision of recovery plans. it also provides legal foundation of bail - in mechanism. ladies and gentlemen, 12. making derivatives markets safer. the third fundamental area of reform is in the otc derivatives market. the crisis highlighted how the opaque inter - connections across financial institutions engaged in trading complex derivative contracts over - the - counter and poor risk management led to rapid contagion and systemic crisis. 3 of 6 13. the reform has focused on 5 ( five ) areas : standardization of derivative contracts ; platform trading ; central clearing ; higher margin and capital requirements for non - centrally cleared trades ; and mandatory reporting of all trades. indonesia has implemented reporting requirement for banks engaging in otc derivatives transactions. in addition, platform trading are required for both equities and commodities derivatives. national authorities are also in the proceses of establishing a ccp