IMF-WB Annual Meetings in 2018 to Raise Five Salient Issues for Indonesia - Bank Sentral Republik Indonesia
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November 14, 2018

The 2018 IMF-WB Annual Meetings to be held from 8th-14th October 2018 in Bali, Indonesia, will discuss five main issues facing Indonesia. This will provide an opportunity for Indonesia to demonstrate the progress already achieved as a reformed, resilient and progressive economy.

First, strengthening the International Monetary System (IMS). Monetary policy normalisation in advanced economies is affecting global financial system stability. Various countries, particularly developing economies, must understand the impact of monetary policy normalisation in advanced economies in order to mitigate the potential risks that may arise. One mitigation measure that will be the focus of discussions is the synchronisation of policy normalisation in advanced economies as well as the appropriate policy response in developing economies by strengthening the Global Financial Safety Net (GFSN) through collaboration between the GFSN and Regional Financing Arrangements (RFA).

Second, the digital economy. Development of the digital economy is influenced by various risks. Therefore, several issues demand attention and will be raised at this year’s Annual Meetings, including the impact of the digital economy on the traditional economy, the payment system, central bank operations, cross-border arrangements and collaboration.

Third, developing economies are currently facing strong demand for infrastructure development financing to stimulate sustainable economic growth. Private sector participation to support infrastructure development financing is one key to success. Discussions on this issue at the Annual Meetings are expected to produce a clear and consistent framework, good governance, a conducive investment climate and innovative infrastructure financing models to expand private sector participation in infrastructure financing.

Fourth, strengthening aspects of the Islamic economy and finance. The Islamic economy and finance play a significant role in terms of supporting sustainable economic growth in advanced and developing economies alike. Islamic financial instruments, such as sukuk as well as zakat and waqf funds, support economic growth as a source of infrastructure financing. Islamic countries in Asia and the Middle East have already compiled the International Standards for Waqf, which are expected to bolster development of the Islamic economy and finance. The 2018 Annual Meetings will provide an opportunity for Indonesia to exhibit the progress made in terms of the Islamic economy and finance.

Fifth, fiscal sector issues, including urbanisation, the digital economy, human capital, disaster risk management, climate change and infrastructure financing.

The 2018 Annual Meetings are expected to accelerate strategic momentum in terms of discussing the issues facing various countries in the Asian region, particularly Indonesia, while simultaneously providing an opportunity for Indonesia to trumpet its reformed and resilient economy. Discussions on the salient issues are expected to yield significant measures that will enhance economic resilience in Indonesia.

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