BI Affirms The Need For Policy Mix In Facing Global Uncertainty
JAKARTA - Bank Indonesia (BI) confirms the need for consistent policies and steps to deal with global uncertainty. This was stated in the series of International Monetary Fund Annual Meetings (IMF) and the World Bank (WB) including the meeting of the Minister of Finance and Governor of the Central Bank of the G20, which was held on October 22-26 2024 in Washington DC, United States.
BI Deputy Governor Filianingsih Hendarta said Bank Indonesia called for the importance of efforts to overcome the impact of the global economy on developing countries.
"In this case, the flexibility of the use of the central bank policy mix, the support of the International Financial Institution - IFIs to developing countries to strengthen the policy mix formulation, and coordination of fiscal and monetary policies and structural reforms are needed in an effort to maintain macroeconomic stability and economic growth," he said in his statement, quoted on Sunday, October 27.
In this aspect of strengthening multilateral cooperation, Bank Indonesia has expressed its readiness to support the implementation of the 16th General Review of Quota agreement which will increase the IMF's capacity as a global financial safety net, as well as encourage adjustments to the IMF quota formula to strengthen the representation of developing countries in the IMF through the 17th General Review of Quota.
In responding to the global economic condition, at the G20 meeting, the Ministers of Finance and Governors of the Central Bank of G20 countries, including Indonesia represented by the Deputy Governor of Bank Indonesia, Filianingsih Hendarta and the Deputy Minister of Finance of the Republic of Indonesia, Thomas Djiwandono agreed to continue cooperation in responding to global challenges and achieving the target of Sustainable Development Goals (SDGs).
Cooperation in various fields such as strengthening the Multilateral and Regional Development Bank and the continuation of cross-border payment development is seen as going to continue to create opportunities for better global economic growth.
Furthermore, at the IMF meeting, the Ministers of Finance and the Governor of the Central Bank agreed on the IMF's Global Policy Agenda to encourage global economic recovery and address world growth challenges.
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To ensure global economic recovery and overcome these growth challenges, policymakers are expected to focus on ensuring inflation is on target, maintaining financial system stability, consolidating fiscals to maintain sustainable development, and carrying out structural reforms to encourage productivity and job prospects.
In addition, both at the G20 meeting and at the IMF meeting, all countries agreed on the importance of strengthening effective multilateral cooperation.