JAKARTA — The global economy is shifting toward a new financial architecture, creating an environment where the traditional boundaries between monetary, fiscal, and macroprudential policies are becoming increasingly blurred. This evolving landscape is heightening the risks of financial system instability, necessitating a stronger mandate for institutional coordination and regulatory autonomy.
This critical assessment was shared by Bank Indonesia (BI) Deputy Governor Thomas A.M. Djiwandono during the opening of the 4th International Conference and Call for Papers (ICFP-JCLI) in Bali on Thursday (May 8, 2026). According to Djiwandono, the rapid digitalization of the financial sector and enhanced cross-border connectivity have accelerated the transmission of global risks, ensuring that modern policy decisions now carry multidimensional and interconnected consequences.
To navigate these complexities, Djiwandono emphasized the need for a more integrated policy framework supported by clear legal mandates across relevant authorities. In such a volatile climate, institutional independence is no longer just a luxury for central banks; it has become a fundamental pillar for regulators and financial sector oversight bodies alike. “We require an integrated policy framework, tight inter-institutional coordination, and clearly defined legal mandates for each entity,” he noted in an official statement released by Bank Indonesia.
This year’s ICFP-JCLI conference, themed “Central Banking in Transition: Navigating Interconnected Risks and Institutional Governance and Autonomy in the New Financial Architecture,” served as a vital platform for discourse. The forum brought together a diverse group of academics, researchers, and global practitioners to analyze the intersections of law, institutional governance, and central banking practices.
The significant interest in these topics was reflected in the overwhelming response to the conference’s call for papers, which attracted 291 submissions from authors across 34 countries. This level of engagement underscores the global urgency surrounding central bank governance and financial system stability.
Throughout the discussions, experts and policymakers reached a consensus: while the acceleration of digital transformation in the financial sector fosters innovation, it simultaneously demands a robust upgrade in governance and crisis preparedness. Ultimately, they argued that a more adaptive surveillance system is essential to safeguard financial stability in an increasingly interconnected global economy.
Summary
Bank Indonesia Deputy Governor Thomas A.M. Djiwandono highlighted that the shifting global financial landscape is blurring the lines between monetary, fiscal, and macroprudential policies. He warned that rapid financial digitalization and cross-border connectivity have increased the transmission of global risks, necessitating more robust institutional coordination. To maintain stability, Djiwandono emphasized that central banks and regulatory bodies must operate under clear legal mandates and strengthened institutional autonomy.
The 4th International Conference and Call for Papers (ICFP-JCLI) served as a platform to address these challenges, drawing significant global interest with 291 submissions from 34 countries. Experts at the event concluded that while digital transformation drives innovation, it requires modernized governance and adaptive surveillance systems. Strengthening these frameworks is considered essential for safeguarding financial stability within an increasingly interconnected global economy.
