Sri Mulyani's Six Financial Issues In The Indonesian Presidency At The G20 Next Year

Minister of Finance Sri Mulyani (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani emphasized that Indonesia will push for six priority agendas from the G20 Finance Track in the Indonesian presidency next year. First, a discussion of exit strategies to support economic recovery.

"The exit strategy is how the economic recovery will drive how countries that carry out extraordinary policies, both in fiscal and monetary terms, gradually begin to carry out exit strategies without disrupting their economic recovery," she said in a press statement from Italy, Sunday, October 31.

Second, efforts to overcome the impact of the COVID-19 pandemic to secure future growth.

“Efforts to handle the impact of the pandemic or what we call it in its technical term in the G20 or the technical term is the scaring effect, the impact of deep wounds due to the pandemic on the economy. This will be the subject of discussion in the finance track," said the Minister of Finance.

Third, the payment system in the digital era, and the fourth is sustainable finance.

"This is mainly to come back with the COVID-19, many countries are experiencing a set back, in this case, the poverty is increasing again and also unemployment, and how to restore a sustainable but sustainable growth track," she said.

The fifth is financial inclusion and the sixth is about international taxation. Within the Italian Presidency, two pillars of international taxation were agreed upon.

“How the principles of profit sharing and then giving rise to global taxation, including minimum taxation to respect the rights of tax revenues of all countries so that there is no so-called base erosion profit shifting or eroding a country's tax base because countries can move between countries to there is a reduction in taxation," she said.

In addition to the six priority agendas above, the Minister of Finance said that Indonesia will also focus on several issues that are legacy issues from the Italian G20 Presidency, such as integrating pandemic risks and climate risks into global risks. Second, strengthening the global financial safety net.

"This is also related to the IMF, which in this case uses SDR (Special Drawing Rights) 650 to be reallocated to help poor countries," she said.

Then, increasing capital flows between countries, continuing the Data Gap Initiatives, reforming financial sector regulations, debt management, and transparency related to debt service suspension initiatives.

Then, the agenda for sustainable and inclusive infrastructure development, support for the Multilateral Development Bank, strengthening the health system capacity for pandemic prevention and response preparedness, and lastly, how to attract private investment.

“Those are the themes that will be discussed and are usually the main themes that will be raised at the G20 meeting at the head of the state level. Because it is from the finance and central bank side, this concerns the health of world finances and especially concerns issues that have implications for global policies and global finances," closed the Minister of Finance Sri Mulyani.