Hence, it is important to address the risks of inadequate normalization policies as well as economic disruptions well.
Jakarta (ANTARA) - Indonesian Finance Minister Sri Mulyani Indrawati has emphasized that it is important to ensure all countries recover together from the COVID-19 pandemic to avoid uneven global development.

"As we have seen, the global economy has begun to revive. However, the progress is unequal among each country," she said at the opening of the first G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting here on Thursday.

Unequal economic recovery may have a significant impact in terms of the different pace of policy normalization, which could potentially cause tighter global liquidity, she pointed out.

Furthermore, the COVID-19 pandemic had induced a severe global economic disruption in both supply and demand sectors, she noted.

Economic disruptions, such as high unemployment, weak investment, and low productivity, can have long-term impacts if the problems are not handled properly and quickly, the minister highlighted.

For instance, these problems can hinder private sector recovery, extensively affect public finances, as well as disturb both the real sector and the financial sector, ultimately hampering progress and creation of strong and resilient economic growth, Indrawati said.

"Hence, it is important to address the risks of inadequate normalization policies as well as economic disruptions well," she added.

Therefore, future economic policies must be developed as a well-calculated, well-planned, and well-communicated exit strategy to achieve smooth recovery as well as strong, sustainable, balanced, and inclusive growth, she said.

In addition, the policies must ensure that global economic growth remains inclusive and no country is left behind, the minister stressed.

Indonesia has been holding the G20 Presidency since December 1, 2021. Currently, the government is hosting two Finance Track meetings in Jakarta, which are estimated to be attended in person by at least 175 participants.

The meetings are the Second G20 Finance and Central Bank Deputies (FCBD) Meeting on February 15–16, 2022, and the First G20 FMCBG Meeting on February 17–18, 2022.

Translator: Agatha Victoria, Uyu Liman
Editor: Fardah Assegaf
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