G20 members should not withdraw stimulus too soon: Finance minister

G20 members should not withdraw stimulus too soon: Finance minister

Some journalists in Riyadh, Saudi Arabia, cover the virtual meeting of the Group of Twenty Finance Ministers and Central Bank Governors. (ANTARA/REUTERS /Ahmed Yosri/pri/sw)

A partial, unequal economic recovery could bring down the global economic prospects, far below the pre-pandemic period.
Jakarta (ANTARA) - At a Group of Twenty (G20) Finance Ministers and Central Bank Governors’ virtual meeting, Finance Minister Sri Mulyani Indrawati urged G20 members to avoid premature withdrawal of stimulus until a durable economy recovery is achieved.

"A partial, unequal economic recovery could bring down the global economic prospects, far below the pre-pandemic period," Indrawati noted in a statement on Friday, adding that the stimulus package should be left in place since the global economy is yet reeling from uncertainty.

The International Monetary Fund's latest World Economic Outlook projected global economic growth to reach -4.4 percent during 2020.

The minister made assurance that Indonesia would stay committed to utilizing all economic policies, including the monetary-fiscal policy mix and structural reforms, in a bid to facilitate the country's economic recovery.

"Indonesia had just passed an omnibus law on job creation to encourage investment and create more jobs," she remarked.

As a further step, the G20 Finance Ministers and Central Bank Governors also brokered a series of new commitments in an updated G20 Action Plan that encompasses principles and concrete measures for adopting policies and as a pledge to handle this pandemic.

The newest G20 Action Plan also aims to support strong economic growth that is sustainable, equal, and inclusive.

Moreover, G20 counterparts concurred on extending the program implementation of Debt Service Suspension Initiative (DSSI) to help least developed nations, delaying their debt payments by the end of June 2021, to better recover and respond to the pandemic situation. Related news: Indonesia set to bolster collaboration with G20 against COVID-19
Related news: Indonesia asks G20 to ensure energy market stability, affordability


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