Indonesia supports compact with Africa program: Sri Mulyani

Indonesia supports compact with Africa program: Sri Mulyani

Menteri Keuangan Sri Mulyani Indrawati. (ANTARA/Rivan Awal Lingga)

We provide technical assistance in the sectors of agriculture and finance."
Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati said Indonesia supports the program of "Compact with Africa", raised in the meeting of G20 finance ministers earlier this month to boost development in Africa.

"The agenda is aimed at increasing investment by the private sector, mainly in infrastructure, through improvement of working frame," Sri Mulyani said of the Indonesian agenda in the Forum G20 here on Thursday.

Sri Mulyani said the program surfaced as being a continent with a population of 600 million having potential natural resources, Africa is still left behind in development.

As a country having historical ties with Africa, since the Asian African Conference in 1955, Indonesia is ready to support the program by encouraging the involvement of the private sector and state enterprises (BUMN) to invest in Africa, she said.

"The private sector and BUMN should start involving themselves to utilize the program, as an opportunity to increase investment and business operations in Africa," she said.

Indonesia has so far been involved in the South-South Program and triangular program and through international financial agency like International Development Association (IDA) of the World Bank.

"This cooperation is strategic among developing countries. We provide technical assistance in the sectors of agriculture and finance. The finance ministry often receives visits by African officials wanting to learn management of state finance, debt and transfers to the region," the minister said.

In order to strengthen the agenda, Indonesia asked G20 to assign Global Infrastructure Hub (GIH) and Global Infrastructure Connectivity Alliance (GICA) to help prepare the mechanism and readiness of financing infrastructure development in Africa.

The meeting of G20 finance minister and Central Bank governors took place in Baden Baden, Germany, March 17-18.

The forum ended with a commitment to supporting strategy for stronger, sustainable, equitable and inclusive growth to maintain the momentum of global growth in long term.

At that meeting, Indonesia stressed the importance of cooperation in international taxation to prevent tax evasion and that it is ready to participate in the implementation of the Automatic Exchange of Information (AEOI) starting in 2018.

Under AEOI, all bank accounts in the world are accessible for investigations of taxable assets.

Indonesia also asked other G20 member countries to support its proposal for Financial Action Task Force (FATF) membership to contribute to eradication of money laundering and terrorism financing.

The meeting, however, failed to agree on international trade, a fact that Indonesia has to consider in formulating its economic policy in the future.