BI Governor At The G20 Forum: Policy Mix Is Important To Overcome Global Challenges

BI Governor Perry Warjiyo (Photo: Doc. Antara)

JAKARTA The first meeting of the finance minister and governor of the G20 state central bank still agrees that global conditions are still the main threat to the economy.

It was stated that rising inflation, food and energy price fluctuations, financial conditions, and geopolitical issues were still the main focus in 2023.

Gubernur Bank Indonesia (BI) Perry Warjiyo mengatakan, komunikasi yang incentif dan koordinasi yang kuat menjadi kunci keberhasil menghadapi berbagai tekanan tersebut.

"It is becoming increasingly important to continue to encourage a well-calibrated, well-planned and well-communicated policy mix," he said while attending the G20 agenda in Bangalore, India, as reported by the official website on Tuesday, February 28.

According to Perry, the central bank must have the right policy synergy with the government as the state administrator.

The reason is, almost all strategic economic decisions are made by the government as the executive body that receives the mandate from the people.

"The policy synergy between the central bank and the government can overcome increasingly complex economic challenges," he said.

Perry gave an example, the implementation of a rhythmic policy between BI and the government and other related parties has produced positive results in terms of inflation control.

"This is a concrete effort in maintaining macroeconomic and financial system stability amidst current global challenges," he stressed.

For information, this year's G20 Presidency is held by India which carries the theme One Earth, One Family, One Future.

A number of issues raised by the South Asian state include a slowdown in economic growth, a high inflation rate, tightening financial conditions, food and energy vulnerability, and also the vulnerability facing developing countries.

In addition, the issue of war in Ukraine is also a concern for the G20 state because it has had a negative impact on the global economy.

In this regard, the G20 countries agreed to strengthen multilateral cooperation to encourage economic growth, as well as overcome the vulnerability that occurs.

The G20 countries also support efforts to strengthen regulation and supervision in the financial sector, particularly those related to crypto assets, non-bank financial institutions and cross-border payment systems.

Furthermore, the finance ministers and governors of the G20 central bank are also committed to supporting the development of financial inclusion through the use of public digital infrastructure.