Indonesia Fosters International Cooperation to Address Impacts of COVID-19 Pandemic - Bank Sentral Republik Indonesia
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October 22, 2020

No. 22/32/DKom
Indonesia emphasizes the importance of international cooperation, both multilateral and regional, in addition to strengthening of national economy, to foster global economic growth amidst pressure from COVID-19. Bank Indonesia also supports coordinated implementation of policy mix response, from fiscal, monetary, and structural aspects to mitigate COVID-19 impacts on economy. It is raised in the virtual International Monetary Fund and World Bank (IMF-World Bank) Spring Meetings on 14-16 April 2020, which are attended by Governors of Central Banks and Finance Ministers of different countries.

In the Spring Meetings, Bank Indonesia Governor Perry Warjiyo raises the important role of policy mix in health, fiscal, and monetary sectors. In addition, international institutions play very crucial roles in maintaining economic resilience and global financial system stability, including maintaining liquidity to boost economic recovery. In such effort, Indonesia and other G20 countries support G20 Action Plan for resolving crisis caused by COVID-19 as a reference for policy response to mitigate impacts of COVID-19.

The meetings also discuss COVID-19 impacts on global economic growth risks. The global economy is facing uncertainty pertaining to the COVID-19 period, likely virus mutation, and effectiveness of different efforts to restrain the virus transmission. Other risks of concern are impacts on financial sector, supply of goods, trade activities, and confidence.

IMF estimates that global economic contraction will occur and emphasizes the importance of the appropriate policy response. IMF estimates global economy will grow by -3.0% in 2020, declining from 2.9% in 2019. Further, global economy will gradually recover and grow to 5.8% in 2021. It is in line with the recovering economic activities with policy supports adopted by the country members. To cope with such condition, IMF affirms the importance of efforts to fight COVID-19 through policies in health sector as well as measures to mitigate economic impacts. Such measures are implemented through fiscal, monetary, financial, international (multilateral and regional) cooperation, increasing global confidence, and efforts to accelerate economic recovery efforts.

Bank Indonesia and the Government as well as the relevant Institutions will consistently devote efforts to strengthen coordination and synergy in mitigating implications of COVID-19 transmission to maintain macroeconomic and financial system stability, and to support favorable and resilient economic growth of Indonesia.

Jakarta, 17 April 2020
Communication Department

Onny Widjanarko
Executive Director

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