Coordinating Minister Airlangga Value B20-G20 Will Improve Business World Integrity And Compliance Strategy

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - In the midst of the turmoil of The Perfect Storm which has the potential to trigger stagflation and crises on various fronts, the national economy is still able to move forward and demonstrate stability and resilience in responding to these global challenges. The strengthening of the economy is shown through the economic growth rate in the second quarter of 2022 of 5.44 percent and supported by relatively controlled inflation as of July 2022 reaching 4.94 percent.

Regarding the capital flow sector, the JCI continued to experience a positive trend year-to-date until August 12, 2022, which grew by 8.32 percent or at the level of 7.129. Throughout August, Indonesia still experienced positive capital inflows of USD 866.1 million, indicating that the prospect of national economic recovery has also provided optimism for foreign investors.

"Various leading indicators have shown that the recovery will continue with a positive outlook, but we must not be careless and ignore the fact that the risk of corruption and violations of corporate governance often increases during a crisis," said Coordinating Minister for the Economy Airlangga Hartarto when delivering a keynote speech in event B20-G20 Dialogue: Integrity and Compliance Task Force, Thursday, August 18.

The risks in the form of bribery, money laundering, terrorism financing, and cybercrime are triggered by several factors such as the volatile financial climate, the shifting of the company's focus on risk mitigation and crisis management, to the increasing threat of cyber security along with the rapid digital transformation during the pandemic. For this reason, companies are required to be able to take adequate corruption mitigation measures through the implementation of good corporate governance practices and transparency in reporting.

"Good governance based on transparency will maintain national and or even international security, and support business operations," said Coordinating Minister Airlangga.

As part of the Open Government Partnership, the Government continues to strive to build synergies among all stakeholders in order to support the eradication of corrupt practices and create a transparent, effective, and fair pandemic response in the long term through various policies.

Through the Digital Economy Working Group (DEWG) of the G20 Indonesia, the Government also encourages G20 member countries to adopt the common principles of Cross-border Data Flow and Reliable Free Flow of Data, which consist of lawfulness, fairness, transparency, and reciprocity. The Trusted Free Flow of Data is also a form of structural transformation to create a balanced, inclusive, and multilateral global order.

In addition, through the G20 Indonesia Presidency, the Anti-Corruption Working Group (ACWG) will also focus on discussing increasing transparency and accountability for both the public and private sectors.

Finally, in line with the Paris Agreement, Indonesia will also increase the transparency of various efforts in dealing with the impacts of climate change as a form of commitment to advocate for a green economy and achieve the 2030 Agenda for Sustainable Development.

"This meeting is very important, because in the midst of uncertainty the B20 raised the issue of compliance which is very much needed, especially to maintain business sustainability as well as in a situation like this the target of climate change must also be pushed because one of the agendas targeted by Indonesia is a fair and affordable energy transition, while in digitization is a reliable data transfer," concluded Coordinating Minister Airlangga in a doorstop session.

The event was also attended by, among others, the Coordinating Minister for Political, Legal, and Security Affairs, Deputy Minister of SOEs I, Members of the OJK Board of Commissioners, Head of the Indonesian Chamber of Commerce (KADIN), Deputy for Education and Community Participation of the Corruption Eradication Commission (KPK), Director of Cooperation and Relations Financial Transaction Reports and Analysis Centre (PPATK) Society, Chair of Business 20 Indonesia, Chair of G20 Indonesia Anti-Corruption Working Group, and Chair of Integrity and Compliance Task Force B20.