VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The leaders of the G20 countries asked finance ministers and central bank governors to monitor the level of public and private debt, given that many countries are widening their fiscal deficits to implement extraordinary policies in dealing with the COVID-19 pandemic.

Minister of Finance Sri Mulyani Indrawati said this after accompanying Indonesian President Joko Widodo at the G20 Summit (Summit) virtually from the Bogor Presidential Palace, Sunday night.

Besides public and private debt levels, G20 leaders are also focusing attention on potential increases in the cost of funds such as borrowing costs, and crowding out for liquidity as many countries want to increase spending to recover the economy.

"Steps to maintain the sustainability of debt levels at both the public and private levels will be a focus that must be seen during the COVID-19 period and after the COVID-19 period," said Sri Mulyani.

"This is indicated by the decline in economic growth and also in terms of human capital. Therefore, all countries undertake various policy actions which are extraordinary in nature and in this case will certainly increase the fiscal deficit," said Sri Mulyani.

In this difficult time, the commitment of many countries to use their fiscal and monetary instruments to the fullest is needed.

The use of fiscal and monetary instruments is needed by various countries to protect the community, through social safety net policies, and also create many jobs to overcome the impact of layoffs during a pandemic.

"To restore the economy of each country and then to become a global economic recovery, it is also necessary to pay attention to financial system stability because this will be an issue that must be considered in the financing track," she said.

At the G20 meeting, the leaders agreed that economic recovery policies must continue to be supported. Countercyclical policies on fiscal, monetary, and financial system aspects need to be implemented until the economic recovery is stable.

The G20 Summit in 2020 takes place in Riyadh, Saudi Arabia on Nov. 21-22, 2020. President Joko Widodo and his ministers participated virtually.

Also attending to accompany the President, besides the Minister of Finance were Foreign Minister Retno Marsudi, Cabinet Secretary Pramono Anung, Sherpa G-20 Indonesia Rizal Affandi Lukman who also served as Deputy for International Economic Cooperation Coordination of the Coordinating Ministry for Economic Affairs, and Expert Staff to the Minister of Finance in International Macro Economics and Finance, Suminto. (Antaranews)