VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Minister of Finance, Sri Mulyani Indrawati and Governor of Bank Indonesia, Perry Warjiyo explained the result of the 1st Finance Ministers and Central Bank Governors (FMCBG) meeting with some international organizations virtually on Friday (18/2).

In a press release, Minister Sri Mulyani pointed out that the 1st FMCBG discussed six priority agendas namely global economy & health, international financial architecture, financial sector issues, sustainable finance, international infrastructure & taxation.

She also remarked that on the first day, there was a high-level seminar joined by world's figures to discuss strengthening the global health architecture in facing the Covid-19 pandemic. Until now, many countries' economies are badly affected and not yet recovering.

On the second day, there were some issues namely sustainable finance, climate crisis, infrastructure, and international taxation. Special for tax, was discussed in an agreement involving two pillars namely taxation in the digital sector and global minimal taxation.

Minister Sri Mulyani further said that the participants also discussed the condition of poor and developing countries stuck in debt. Therefore, a global cooperation from the creditors is needed to provide space for these countries so that they can recover.

In the same press release, Governor Perry Warjiyo said that the international monetary system was also an important discussion. It was mainly related to the plan and anticipation of the policy normalization in developed countries.

The meeting participants agreed some commitments, such as the need to support macro stability and global finance. G20 is committed to implementing a normalization that has been properly calibrated, planned, and communicated. This is important so that the policy normalization by developed countries will have minimal impact on global finance market conditions.

The other issues being discussed were a more varied currency in trade and investment, and global finance sector reform. Referring to the G20 roadmap, the participants were committed to further strengthening and expanding payment digitalization as well as promoting an easy, fast, and cheap transaction. This is aimed at increasing retail trade development, financial inclusion and supporting the micro, small, and medium enterprises, especially for women and youths.

The 1st Finance Ministers and Central Bank Governors Meeting also supports the FInancial Action Task Force (FATF) as a global standardization agency to prevent and fight money laundering, terrorists funding, and proliferation funding.