Serving As G20 Presidency, Indonesia Promotes Strong, Inclusive And Sustainable Global Economic Recovery

Group photo with G20 leaders (Photo: Doc. G20)

JAKARTA - Indonesia officially received the G20 Presidency from Italy for the 2022 period. In leadership next year, Indonesia will encourage economic recovery cooperation in order to realize stronger, inclusive, and sustainable world economic governance.

Head of the Fiscal Policy Agency at the Ministry of Finance, Febrio Kacaribu, said that the Indonesian government has priority agendas, both on the Sherpa route and on the financial route, which focuses more on international economic and financial issues.

Among the priority agendas on the financial track proposed by Indonesia will focus on handling the latest global issues such as exit policy.

"One of the steps that will be taken for this priority agenda is an in-depth discussion on increasing global risk surveillance and monitoring," he said in an official statement, Monday, November 1.

According to Febrio, Indonesia will also formulate a measurable strategy design to gradually withdraw fiscal and monetary stimulus during the pandemic.

The other priority agenda is to address the issue of the scarring effect that can hamper growth potential in the medium to long term.

"The government will encourage the reallocation of labor to overcome the unemployment issue and encourage increased creativity and productivity," he said.

In addition, capital reallocation will also continue to be pursued as a step to overcome the problem of stagnation in production and operational levels, in order to support investment growth. The government will also increase digital inclusion and address the digital divide, as well as make effective policies to address various structural issues such as the potential for medium and long-term output declines and employment issues.

The legacy agenda on the financial line will always be maintained and continued. Global support for all vulnerable countries most affected by the COVID-19 pandemic is carried out through Special Drawing Rights (SDR) Allocations, Multilateral Development Banks (MDBs) financing facilities, debt restructuring agendas, and other support.

Then, the acceleration of investment in infrastructure, especially after the pandemic, will also be pursued, including through the transformation of digital infrastructure and increasing private investment.

Finally, the sustainable finance agenda will be directed at a just and affordable transition to accelerate environmentally friendly economic recovery through sustainable financing and the potential for carbon pricing.

In addition, financial regulations in the context of developing a digital financial system are increasingly being strengthened.

"The discussion room will emphasize the impact of digital innovation, which will not only focus on the benefits of digital innovation but also discuss the importance of containing the potential risks that arise," concluded Febrio.