Ahead Of The G20 Presidency, BI Boss Perry Warjiyo Explains The Differences In Conditions Of Developed And Developing Countries

Illustration (Photo: Doc. Antara)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo said that economic issues will be an important discussion in Indonesia's presidency at the G20 in 2022. According to him, there are two economic categories of G20 member countries, namely developed and developing.

In his explanation, a number of developed countries are already in the phase of economic recovery. This then has an impact on the monetary and fiscal policy approach taken.

"Some are recovering and are already planning to change their policies and reduce fiscal and monetary stimulus, including the financial sector," he said in a virtual press conference, Tuesday, September 14.

Perry added, different things happened to the members of the G20 who were included in the emerging country group, including Indonesia.

"Meanwhile, developing countries still have to push for economic recovery and still need fiscal monetary stimulus and the financial sector," he said.

For this reason, as governor of Indonesia's central bank, Perry plans to build cooperation among G20 countries to strengthen synergies and provide benefits not only to fellow members, but also globally.

"We need to do this for the G20 so that the global economic recovery can be more balanced and not cause scary over or the impact of obstacles in developing countries," he stressed.

One of the concerns of the BI boss is the action of tightening liquidity by the US central bank which has the potential to have international effects.

“Monetary steps in a number of developed countries, including the US central bank, to change their policies, which we often call the Fed tapering, can trigger turmoil. This is the importance of communication and coordination so that they can support joint economic recovery," he said.

For information, the G20 represents 85 percent of global GDP from the 20 largest economies in the world today. From Southeast Asia, Indonesia is the only country included in the group.

The G20 itself consists of Indonesia, Australia, Brazil, Canada, China, the European Union, France, Germany, India. Then, Italy, Japan, Mexico, Russia, Saudi Arabia, South Korea, Turkey, England, and the United States.