##nearly triple the number imposed in 2019. and many firms around the world are reorganising their supply chains and are considering re - shoring, near - shoring or friendshoring. so while global trade is still resilient, we are already seeing more and more cracks appearing under the surface. in today's interconnected world, the prospect of geoeconomic fragmentation looms large over nations like indonesia and the netherlands. indeed, our economies thrive on international trade, with each other and with the rest of the world. the cost of geo - economic fragmentation comes in different shapes. further geo - economic fragmentation and trade restrictions reduces the efficiency in the allocation of resources and hinders the diffusion of innovations. this will add to global price pressures and lower productivity growth. recent imf estimates state that trade fragmentation could reduce global gdp volume by between 0. 2 % and 7 %, with countries that rely more heavily on international trade being more susceptible. as a central bank, we are also concerned about geo - economic fragmentation affecting financial stability, particularly through its impact on financial institutions. for example, disruptions in value chains and their impact on economic growth and inflation can lead 2 / 4 bis - central bankers'speeches to an increase in banks'market and credit losses. moreover, a tightening of financial conditions because of geo - economic fragmentation may increase vulnerabilities in the banking sector as risk premia rise. perhaps the most important way in which fragmentation impacts financial stability is when we cannot find each other anymore when facing important cross - border challenges. and there are many such challenges. during the global financial crisis of 2008, policymakers around the world were able to respond swiftly and effectively. this was possible thanks to good relations among public - sector financial decision makers and solid institutional structures that had developed over the years. after the crisis, countries around the world, assembled in the g20, took the lead in hammering out a firm package of financial reforms. in a fragmented world, such a swift response is becoming more complicated. this could prove costly. that's because the most important challenges to financial stability that we currently face are precisely the crossborder issues that we can only solve if we work together. think of climate change, for example. to overcome these challenges, we need to foster collaboration between countries and emphasise the importance of an international rule - based order. a fragmented world demands stronger international collaboration to prevent the costs from outweighing the benefits. what we need today in

olaf sleijpen : the rise to economic leadership - indonesia's development from the perspective of the dutch central bank speech by mr olaf sleijpen, executive board member of monetary affairs and financial stability of the netherlands bank, at the indonesia - netherlands trade, tourism, and investment forum, amsterdam, 28 may 2024. * * * your excellencies, ladies and gentlemen, it is a great honour to speak at the indonesia - netherlands trade, tourism, and investment forum. indonesia is a very important and close partner of the netherlands, so it feels good to meet with you here. terima kasih [ thank you ]. nearly 700 years ago, before modern - style banks existed, people stored their money at home. rather than metal containers, they used common kitchen jars made from a cheap orange - colour clay called'pygg '. whenever families had money left over, they would save their coins in these clay jars, known as'pygg pots.'the first true piggy banks originated in java as far back as the 13th century. they were made of terracotta and shaped like pigs, with a slot on top for depositing coins. few of these piggy banks, known as " celengan " in javanese, survived as they had to be demolished to retrieve the saved coins inside. while the piggy bank represents a simple but ingenious system for individual savings and informal storage, central banks can be thought of as the piggy banks of the entire monetary system. so as the representative of the dutch piggy bank, let me give you my view on the macroeconomic development of indonesia, and its role in the world. i am not the only speaker this morning to mention that indonesia and the netherlands are important trading partners : according to the international trade centre, in 2023 we exported 0. 8 billion euros worth of goods to indonesia, while we imported 5. 1 billion euros worth of goods in that same year. this makes the netherlands the 12th largest import partner of indonesia, and the largest within the eu. we enjoy a strong economic partnership, and the netherlands is keen to further develop economic opportunities for our countries'businesses. besides being key trade partners, indonesia and the netherlands work closely together in other domains as well. during the g20 bali summit two years ago, for example, we co - hosted a conference on payment systems with the bank indonesia institute, as part of a long - lasting cooperation between our central banks