Bank Indonesia is strengthening reliable, efficient and secure central banking services to support cross-border economic and financial activities, transactions, financial management and policy implementation at the Central Banking Services Festival (CB Fest) 2026 in Jakarta (28/09).

“Policy credibility needs to be supported by operational credibility,” Bank Indonesia Deputy Governor Thomas A. M. Djiwandono said at the opening of CB Fest 2026 at Hotel Kempinski, Jakarta.

Thomas said the development of cross-border economic and financial activities requires reliable, efficient and secure central banking services. These services include monetary operation settlements, foreign exchange reserve management, international financial cooperation and gold reserve management, as well as services for the government and financial industry.

CB Fest 2026 Strengthens Central Banking Services

Bank Indonesia provides services to the government, including government account administration, fund transfers and transaction settlements, as well as administration of the government's external debt.

For the financial industry, Bank Indonesia provides settlement services for securities transactions in rupiah and foreign currencies.

The role of a central bank also covers maintaining price and exchange rate stability, financial stability, reliable payment systems and sustainable economic growth.

Local Currency Transactions Expand Across Seven Countries

The expansion of cross-border economic and financial connectivity is reflected in the continued growth of Local Currency Transaction (LCT) cooperation.

LCT encourages the use of local currencies in bilateral transactions. It supports external resilience and exchange rate stability while facilitating trade and investment with partner countries.

Indonesia has implemented LCT cooperation with seven partner countries: Malaysia, Thailand, China, Japan, South Korea, the United Arab Emirates and Singapore.

In the first half of 2026, LCT transaction value reached US$42.07 billion. The figure grew 259% year on year from US$11.72 billion during the same period in 2025.

The first-half 2026 figure also exceeded the total LCT transaction value recorded throughout 2025, which was US$25.74 billion. The cooperation is continuing to expand to other partner countries.

Policy Coordination Supports Financial Resilience

Deputy Finance Minister Juda Agung said resilience means not only the ability to face a crisis but also the ability to adapt and maintain public confidence.

Juda said resilience needs to be built before a crisis through credible policies, strong institutions, good governance, continuous adaptation and cooperation.

He said coordination among fiscal, monetary and financial sector policies is needed to respond to economic changes and technological developments.

CB Fest is an annual forum that brings together central banks, financial sector authorities, ministries and government agencies, the banking industry and international associations.

The forum also serves as a platform to strengthen Bank Indonesia's strategic position in the global financial landscape and strengthen cooperation in responding to global economic dynamics and cross-border transactions in the digital era.

CB Fest 2026 Focuses on Geopolitical Risks and Technology

CB Fest 2026 carries the theme “Strengthening Financial Services Resilience Amid Escalating Geopolitical Risk to Support Economic Growth.”

Discussions at the forum cover the impact of geopolitical changes on the economy and financial stability, as well as responses that authorities and industry need to prepare.

The discussions involve geopolitical and economic experts from the Centre for Strategic and International Studies (CSIS), technology academics from the Institut Teknologi Bandung and the University of Melbourne, and data and financial analytics practitioners from Delloite and J.P. Morgan Asia Pacific.

The discussions highlight the need for adaptive policy responses, stronger risk management and the use of technology to strengthen financial sector resilience amid global uncertainty.

The forum also discusses the use of artificial intelligence (AI) and generative AI to improve efficiency and support transformation toward intelligent reporting, while maintaining transparency, accountability and stronger competencies in financial functions.

CB Fest 2026 is expected to strengthen global collaboration and strategic cooperation among central banks and produce policy recommendations to strengthen resilient services and adaptive financial management in facing geopolitical risks to support sustainable economic growth.

PHOTO: BANK INDONESIA

This article was created with AI assistance.

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