more negative. the most recent uk ’ s decision to leave the european union adds another complication to the already bleak global economic outlook. moreover, brexit, which some said has produced a seismic political shock, has shifted the nature of global concerns from heightened vulnerabilities towards a new era of political uncertainty. the previous episode of heightened vulnerabilities were characterized by rising risk of weakening growth, unresolved legacy issues in banks from advanced economies, leveraged and increasingly fragile corporates from emerging markets, and the existence of systemic liquidity. all of these urgently require more balanced and potent policy mix. bis central bankers ’ speeches now, in the new era of political uncertainty, there seems to a strong link between political uncertainty and market confidence. a political shock results in economic and financial fallout, and has tremendous financial stability implication. therefore, in this new episode, apart from addressing vulnerability, we need also to strengthen the foundations of global financial system. otherwise, there is a likelihood that we will be trapped in a vicious circle, in a way that the policy uncertainty undermining confidence will instill slower and stagnant growth, which will erode political cohesion, making the crisis legacy challenges harder to resolve, which will later induce further increase in policy uncertainty. such new dynamics and concerns have given rise to a new set of policy challenges, not only on how to simultaneously maintain stability and revive growth, but also on how to strengthen the foundations of global financial system. against this backdrop, bank indonesia and the federal reserve bank of new york have decided to co - host a seminar that will look deeper and expand the boundaries of thinking, nurturing, and offering new insights pertaining to these challenges, with the spirit of putting both east and west perspectives on the table. in our opinion, the boundaries would encapsulate three areas. first, pursuing growth objectives after the crisis, where factors impeding the global economy will be discussed, and initiatives to balance structural reform and support for growth will be deliberated. topics surrounding challenges that are unique to small open economies, along with strategies to achieve sustained economic growth, hopefully will make this seminar very relevant and interesting. second, monetary policy tradeoffs in the open economy, where challenges stemming from divergent monetary policies, linkages between economic and financial cycles, dealing with capital flow reversal risks, and new roles of exchange rate in external adjustment, will be discussed. third, achieving financial stability in periods of monetary policy divergence, in which

form of a clear and transparent mechanism pursuant to the respective task and authority of bank indonesia and the police at the central and regional levels referring to prevailing laws and regulations as well as paying due regard to principles of justice, mutual benefit and law. 22. i warmly welcome the signing of this agreement on handling alleged payment system and currency exchange crime as an integral part of our combined efforts to combat various crimes. ladies and gentlemen ; 23. through the signing of this document, we are sure that the future handling of alleged payment system and currency exchange crime will be more effective, thereby bolstering efforts to protect the general public through the creation of a sound and secure payment system and currency exchange industry. 24. the working guidelines will help combine effective communication, intensive coordination and synergic collaboration between bank indonesia, the police and the government and the central and local levels, whilst ensuring all stakeholders maintain effective law enforcement in the payment system and currency exchange industry. 25. in closing, with the confidence that god is always by our side, may he bless our endeavours towards a brighter future. thank you. bis central bankers ’ speeches