This moment, marked with plenty of challenges, is the right time to carry out structural reforms
Jakarta (ANTARA) - Indonesia's Finance Minister Sri Mulyani Indrawati placed emphasis on the importance of executing structural reforms while attending the Asia Pacific Economic Cooperation (APEC) Finance Ministers' Meeting in San Francisco, California, the United States.

"This moment, marked with plenty of challenges, is the right time to carry out structural reforms," Indrawati said in her statement received in Jakarta on Tuesday.

The minister observed that the world is facing increasingly complex global economic challenges, such as the issuance of "higher for longer" policies on interest rates that further deteriorate the fiscal positions of several countries.

The minister then outlined several measures taken by Indonesia for conducting structural reforms.

Indrawati highlighted that Indonesia had issued the Tax Regulation Harmonization (HPP) Law and Fiscal Relations between Central Government and Regions (HKPD) Law in 2021.

She then noted that Indonesia has been optimizing the State Budget (APBN) to support efforts to accelerate economic transformation, including by focusing on investment in infrastructure and human resources to resolve development issues.

The state treasurer also alluded to climate change-related policies, saying that they could trigger a "crowding out" effect at the global level that will lead to a higher pressure on markets, thereby increasing interest rates as a result.

Such a condition, in turn, could pump up pressure on the financing sector in developing countries, including Indonesia, she elaborated.

"Devising mature and wise fiscal policies is paramount to face these global dynamics," she stressed.

The finance ministers' meeting, which is part of a series of agendas of the APEC Economic Leaders' Week taking place on November 11-17, was participated by a total of 21 finance ministers of APEC member countries.

Indrawati expressed hope that the meeting and other agendas of the event would serve as forums for APEC member countries to formulate solutions to the challenges currently being faced by the global community.

Related news: APEC makes progress on structural reform amid challenges
Related news: APEC members renew commitment to universal health coverage
Related news: Need to pursue structural reform implementation: Minister Indrawati

Translator: Imamatul S, Tegar Nurfitra
Editor: Sri Haryati
Copyright © ANTARA 2023