This is an unprecedented level, on the fiscal side, on the monetary side, and on the regulatory side to support individuals and businessesJakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati affirmed that Indonesia, during its G20 Presidency next year, will lay emphasis on global coordination for equitable economic recovery from the impacts of the COVID-19 pandemic.
"This is one of the most important highlights of the G20 under the Indonesian presidency on how global coordination can continue to be established to restore the economy that is out of sync in the midst of different policies," the minister stated at a press conference here, Thursday.
The COVID-19 pandemic has led to a significant loss of human life and presented unprecedented challenges to health and the global economy, she emphasized.
Over 10 million people are currently regressing below the extreme poverty line, and millions of companies and businesses have ceased their businesses.
It tests the G20 to respond, so that the world can recover together, considering that all countries in the world have taken extraordinary steps to save lives and economies, the minister noted.
"This is an unprecedented level, on the fiscal side, on the monetary side, and on the regulatory side to support individuals and businesses," she noted.
Some countries have responded by providing stimuli almost 10 folds higher than other global financial crises.
On the other hand, the recovery was not balanced, as developed countries recorded a much faster recovery, whereas some low-income nations were lagging behind, she remarked.
The uneven recovery is an implication of insignificant policy coordination, with several countries experiencing very high inflationary pressures, economic contraction, unemployment, and poverty, she expounded.
Hence, the country's G20 Presidency in 2022 will be an important forum for policy makers to discuss and design ways to create an equitable recovery process and address new challenges regarding inflation, high commodity prices, and supply disruptions.
"The G20 needs to continue to remain alert to this challenge, and this will be one of the most critical forums to discuss the potential spillover effects from any country, especially the policies of big countries throughout the world," she stressed.
The G20 also plays an important role in helping low-income countries recover, as they are currently bearing a high debt burden as a result of the series of efforts to recover from the pandemic.
The G20 forum, through several initiatives, allowed delays in payment of foreign debt for low-income countries.
"There is also an initiative to inject US$5 trillion for COVID-19 containment efforts when the G20 Presidency was under Saudi Arabia," he stated.
The G20 also targets to vaccinate 40 percent of the world's population, especially in developing and low-income countries, against COVID-19 by the end of this year and 70 percent by mid-2022.
"This can only be achieved through increasing the supply of vaccines, especially for developing countries and removing supply barriers and financing constraints," she noted.
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Translator: Astraid FH, Fardah
Editor: Sri Haryati
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