We will ensure that the direction of discussion is able to catalyze cooperation between countries, so that there is strong, inclusive, and sustainable recoveryJakarta (ANTARA) - The G20 Presidency in 2022 to be held in Indonesia will be an effective forum to solve global problems, Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu stated.
"We will ensure that the direction of discussion is able to catalyze cooperation between countries, so that there is strong, inclusive, and sustainable recovery," Kacaribu noted in here on Monday.
The Indonesian government has priority agendas, both on the Sherpa route and on the financial route, with greater focus on addressing international economic and financial issues to cater to global needs.
The priority agenda for the financial route proposed by Indonesia includes focus on handling the latest global issues, such as an exit policy through in-depth discussions on increasing global risk monitoring and supervision.
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The smooth exit strategy policy will be implemented while taking into account the different conditions of each country.
Indonesia will also formulate a measurable strategy design to gradually withdraw fiscal and monetary stimulus during the pandemic and be adjusted to the development and speed of recovery between countries.
In addition, the development of policy options in overcoming the balance sheet problems of the public and private sectors will also continue to be conducted.
The other priority agenda is overcoming the issue of the scarring effect that can hamper growth potential in the medium to long term.
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The government will encourage the reallocation of labor to overcome the issue of unemployment and encourage increased creativity and productivity.
In addition, capital reallocation will continue to be pursued as a step to overcome the problem of stagnant production and operational levels in order to support investment growth.
Meanwhile, in overcoming the scarring effect, Febrio called for a balance through efforts to increase productivity, maintain growth rates, and remain vigilant to prevent the spike in COVID-19 cases and virus mutations.
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The government will also increase digital inclusion and address the digital gap as well as make policies to solve structural issues, such as the potential decline in medium- and long-term output and employment.
Global support for vulnerable countries is carried out through Special Drawing Rights (SDR) Allocations, Multilateral Development Banks (MDBs) financing facilities, debt restructuring agendas and other support.
Acceleration of investment in infrastructure, especially after the pandemic, is also being pursued, including through the transformation of digital infrastructure and increasing private investment.
The sustainable finance agenda will be directed at a fair and affordable transition to accelerate environmentally friendly economic recovery through sustainable financing and the potential for developing carbon economic value or carbon pricing.
Lastly, financial regulation in order to develop a digital financial system is further strengthened by a discussion room that emphasizes the impact of digital innovation.
"This does not only focus on the benefits of digital innovation but also discusses the importance of containing the potential risks that arise," Kacaribu added.
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Translator: Astrid H, Azis Kurmala
Editor: Fardah Assegaf
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