G20 Members Strengthen Economic Recovery Policy Response and Cooperation - Bank Sentral Republik Indonesia
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August 14, 2020

G20 members have agreed to increase cooperation and continue fiscal, monetary and financial sector policies to protect lives, maintain jobs as well as support those experiencing a loss of income, while bolstering financial system resilience in response to transmission of the COVID-19 pandemic. Cooperation will be increased to overcome virus transmission and strengthen the policy response towards a strong, sustainable, balanced and inclusive global economic recovery. The agreement was reached during a virtual meeting of finance ministers and central bank governors held on 18th July 2020, with Finance Minister Sri Mulyani Indrawati and Bank Indonesia Deputy Governor Dody Budi Waluyo in attendance.

At the meeting, the IMF acknowledged that the COVID-19 pandemic is larger in scale and longer in duration than previously expected, leading to a global economic contraction in 2020. Recent gains in economic indicators due to the gradual reopening of economic activities and the unprecedented monetary and fiscal stimuli introduced across various jurisdictions have been weak. Therefore, the global economy is not expected to regain positive momentum until 2021. Consequently, in the absence of a medical solution to COVID-19, strengthening G20 cooperation is necessary to prevent a deeper impact on the global economy.

The G20 finance ministers and central bank governors agreed on the importance of expanding access to the economy, education and jobs for women, youth and MSMEs, exploiting technology for infrastructure development (Infratech) and strengthening financial sector resilience. This will help to realise a strong, sustainable, balanced and inclusive global economic recovery. The G20 also agreed to grant the Debt-Service Suspension Initiative for the poorest countries impacted by COVID-19 and reiterated the forum's commitment to achieving consensus by the end of 2020 concerning global tax policy in the era of the digital economy.

Bank Indonesia took the opportunity to stress the importance of an optimal policy mix to overcome the COVID-19 pandemic, coupled with effective policy communication to maintain trust in the financial markets. Furthermore, Bank Indonesia also emphasised the critical role played by international financial institutions in terms of increasing global economic resilience and financial system stability.

In conjunction with the Government and other relevant institutions, Bank Indonesia will continue to strengthen coordination and synergy in order to maintain macroeconomic and financial system stability, while accelerating the national economic recovery from the impact of the COVID-19 pandemic.

The Communiqué of Finance Ministers and Central Bank Governors is available for download at the following link:

Head of Communication Department
Onny Widjanarko
Executive Director 
 
Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id


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