This year, with the economic recovery gains momentum, CAD will be expected to widened but still within our long term sustainable CAD norm of 2.5–3% of GDP. We expect more than enough external financing for these deficits, with FDI constitutes the majority of the capital inflows and to a lesser extent long-term private external borrowing and portfolio investments. On financial system stability.
Overall banking industry is sound, with CAR relatively high at about 21%. Lending growth is slowing, only about 10% in January 2016. But with economic stimulus from both fiscal and monetary, as well as liquidity injection with 1% reduction of reserve requirement that Bank Indonesia decided recently, we expect lending growth to increase to about 12–14 % this year.