In an earnest appeal at the recent G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, Indonesia’s Finance Minister, Sri Mulyani Indrawati, pressed G20 members to rally together to address significant global hurdles. The challenges cited revolve around pivotal areas such as sustainable finance, economic resilience, global health, international tax, and inclusive finance.
Indrawati stressed the numerous components necessary for attaining the shared vision of sustainable development and climate agenda. These elements include the adoption of transition finance, blended finance schemes, all-encompassing fiscal policies, real sector policies, and green transition activities.
These discussions unfolded at the third FMCBG meeting under the Indian Presidency, held in Gandhinagar, Gujarat, on 17-18 July 2023. Indrawati urged for international collaboration on a grand scale to harmonize global pathways towards climate and sustainable development targets.
On the infrastructure front, Indonesia reaffirmed its support for the G20’s principle of voluntary future cities funding. This approach aims to foster sustainable infrastructure and the creation of inclusive and resilient urban environments.
With global health in the spotlight, Indrawati highlighted the necessity of G20 nations maintaining robust ties between their finance and health ministers. This cooperation is pivotal in gearing up for potential future pandemics.
Indonesia has expressed optimism following its response to the Pandemic Fund’s call for proposals. The country anticipates the first round of funds to arrive in the coming months. However, Indrawati noted that the existing $1.7 billion Pandemic Fund falls significantly short of the required $10.5 billion.
The Finance Minister also drew attention to the ongoing consultations between the World Health Organization, World Bank, European Investment Bank, and International Monetary Fund on the development of a Framework of Economic Vulnerabilities and Risks (FEVR).
In an effort to reshape international financial architecture, Indonesia champions the execution of the Multilateral Development Bank’s capital adequacy framework. The G20 is encouraged to optimize both Multilateral Development Bank and private investments for financing Global Public Goods (GPG).
The minister underscored the role of Two-Pillar Solutions in international tax matters, promoting fairness, accessibility, and certainty. According to her, the first pillar promotes profit distribution equity, while the second addresses base erosion and profit shifting. She advocated for capacity development of the second pillar, given its imminent implementation.
This news is based on an article from antaranews.com.