this year and beyond. the fiscal stimulus started to kick in in the third and fourth quarter last year, and budget absorption has been accelerated since early of this year, notably in capital expenditures. the continuous series of deregulation packages from the government will provide greater impetus for better investment climate, competitiveness, and buoyant economic activities. we are seeing accelerated completions of key infrastructure projects : toll road, airports, energy, irrigation, and more. our macroprudential relaxation and monetary easing will also provide supports for higher economic growth. let me provide our latest economic outlook for this year and next year. on economic growth. last year, we recorded an economic growth of 4. 79 %. with the fiscal stimulus, the economic growth reached the bottom of 4. 66 % in the second quarter of last year and picked up to 5. 04 % in the last quarter. investment in construction related to government projects together with private and government consumptions support the recovery. this year will be much better. compared to early of last year, where the government must deal with the administrative procedures, this year fiscal stimulus through the acceleration of government projects already started to kick - in in the first quarter. with that, our economic growth forecast for this year will be around 5. 2 – 5. 6 %. it will be supported by fiscal stimulus as well as the monetary policy easing to accelerate economic growth. private consumption will still be robust. government related expenditures, especially investment in infrastructures, will boost the economy, as we saw since q3 - 2015. that is why the sectors that start rebounding will be construction, transportation, communication, and electricity, which are most of the government related fiscal stimulus sectors. i am sure that trade and manufacturing sectors will follow as the economic growth starts to gain broad momentum. this is the dynamic of the stimulus to economic growth that we will be seeing to the future. on inflation. we managed to lower inflation from 8. 3 % in 2014 to only 3. 3 % in 2015, which i think a part of its success owes to our monetary policy credibility that we gain since 2013. this year and next year we forecast inflation within our range of 4±1 %. in the past, the challenge of price stability mainly came from administered prices, namely the subsidy of fuel and electricity. but the government has succeded in reforming these subsidies. this helps the central bank to be more certain in forecasting and controlling inflation. unlike in the past, both

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