The global economy is currently shaped by two major forces: escalating geopolitical uncertainty and rapid digital innovation.

These dynamics are transforming international transactions and redefining the role of central banks and related authorities in providing core banking services and managing payment systems in the digital age.

Strengthened connectivity, interoperability, and cross-country collaboration are essential to building an inclusive and adaptive cross-border payment ecosystem.

This message was delivered by Bank Indonesia Governor Perry Warjiyo at the opening of the Central Banking Services Festival (CB Fest) 2025 in Jakarta.

Central Banks Adapt to Digital and Geopolitical Pressures

Governor Perry reaffirmed Bank Indonesia’s commitment to advancing digital economic and financial development, while strengthening international connectivity through cooperation with both global and domestic authorities.

“Our priorities include digitalization and integration of domestic and global payment systems, both retail and wholesale, development of digital infrastructure such as BI-FAST, QRIS, and strengthening industry infrastructure through SNAP and risk management, industry consolidation and regional connectivity, ongoing innovation in central banking services, expanding cross-border cooperation, and the development of the Digital Rupiah as a strategic instrument to support payment innovation and financial stability in the digital era,” said Governor Perry.

He added that the use of digital innovation, including cross-border instruments, must be accompanied by synergy and caution to reinforce stability, drive quality economic growth, and improve public welfare.

Trust, Fairness, and Cooperation as Financial Foundations

Deputy Minister of Foreign Affairs of the Republic of Indonesia, Arrmanatha C. Nasir, noted that CB Fest 2025 reflects Bank Indonesia’s commitment to digital transformation amid today’s global financial landscape.

He stated that the world is facing geopolitical rivalry, economic volatility, and disruptive technology. In this context, three shared principles are necessary to maintain financial system stability: trust, fairness, and cooperation.

“Without trust, the financial system cannot operate optimally; without fairness, it risks losing legitimacy; and cooperation is the key to the resilience of financial systems in the face of rapid technological innovation,” he said.

CB Fest 2025: Strengthening Global Collaboration in Digital Payments

CB Fest is an annual forum that brings together representatives from central banks, financial service authorities, ministries, banking industry players, and international associations to enhance collaboration amid global economic dynamics and cross-border transaction challenges.

The 2025 forum carries the theme, “Enhancing Central Bank Services in the Digital Age: Building Resilient Cross-Border Settlement Amid Geopolitical Shifts.”

Monetary authorities from Russia, South Korea, India, the Philippines, Cambodia, Laos, Brunei Darussalam, Timor-Leste, Papua New Guinea, Vietnam, and Hong Kong were present at CB Fest 2025.

The forum aims to strengthen cooperation between central banks and strategic partners in cross-border payments and support smooth international transactions and future economic collaboration.

PHOTO: BANK INDONESIA

This article was created with AI assistance.