Jakarta, Indonesianpost.com – Indonesia urged G20 members to work together to resolve global challenges during the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian Presidency recently.
The challenges pertain to sustainable finance and infrastructure, economy and global health, international financial architecture, international tax, as well as the financial sector and financial inclusion, among others.
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“In financial sustainability and infrastructure agenda, there are many crucial factors in pursuing the collective goal of sustainable development and climate agenda,” Finance Minister Sri Mulyani Indrawati said, according to a statement of her ministry received here on Wednesday.
The meeting was held on 17-18 July 2023 in Gandhinagar, Gujarat, India.
The factors include transition finance; blended finance schemes; comprehensive fiscal, real sector, macro, and macroprudential policies; and the classification of green transition activities, she informed.
Indrawati called for global-scale collaboration to achieve those goals so that all countries are on the same path leading toward the climate and sustainable development targets.
As for infrastructure, Indonesia seconded the G20 principle of voluntary future cities funding in pursuing sustainable infrastructure development to create inclusive, great, and sustainable cities, she affirmed.
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Touching upon global health issues, the state treasurer asked the finance ministers and health ministers of G20 nations to maintain good relations with one another as preparation for facing another pandemic.
Indrawati said that Indonesia has responded positively to the call for proposals issued by the Pandemic Fund, and is expecting the first wave of the funding, which will come in slowly in some months.
“However, the current Pandemic Fund is at US$1.7 billion, still far below the needed fund of US$10.5 billion,” she highlighted.
Currently, the World Health Organization (WHO) is consulting with the World Bank, European Investment Bank, and International Monetary Fund to develop a Framework of Economic Vulnerabilities and Risks (FEVR), she noted.
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In terms of international financial architecture, Indonesia is promoting the implementation of the capital adequacy framework issued by the Multilateral Development Bank, she said.
The G20 also needs to seize the opportunity of improving the Multilateral Development Bank and private investments to fund Global Public Goods (GPG), the minister said.
She highlighted that Indonesia has set an example in global public goods funding through the energy transition mechanism as a financing method that involves the government, the Multilateral Development Bank, and private investment.
As for international taxes, Indrawati stressed the aims of Two-Pillar Solutions, those being promoting fairness, ease of access, and certainty, added.
The first pillar involves allocating profit in a more fair manner so as to emphasize equality, whereas the second pillar is to address the remaining base erosion and the profit shifting issue, the minister said.
She also called for the development of the second pillar’s capacity, as it will be implemented soon.