20-7-2023 (JAKARTA) During the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting held under the Indian Presidency, Indonesia urged G20 members to collaborate in resolving global challenges. The challenges covered sustainable finance, infrastructure, economy, and global health, international financial architecture, international tax, financial sector, and financial inclusion, among others.
Indonesia’s Finance Minister Sri Mulyani Indrawati emphasized the many crucial factors required to pursue the collective goal of sustainable development and climate agenda. These factors include transition finance, blended finance schemes, comprehensive fiscal, real sector, macro, and microprudential policies, and the classification of green transition activities.
Indrawati highlighted the need for global-scale collaboration to achieve the goals, ensuring that all countries are on the same path towards climate and sustainable development targets. Indonesia seconded the G20 principle of voluntary future cities funding in pursuing sustainable infrastructure development to create inclusive, great, and sustainable cities.
Regarding global health issues, the state treasurer asked the finance and health ministers of G20 nations to maintain good relations with one another in preparation for facing another pandemic. Indrawati informed that Indonesia has responded positively to the call for proposals issued by the Pandemic Fund, expecting the first wave of funding in some months.
Indrawati stressed the significance of Two-Pillar Solutions in international taxes, promoting fairness, ease of access, and certainty. The first pillar involves allocating profit more fairly, emphasizing equality, whereas the second pillar aims to address the remaining base erosion and profit-shifting issue. She called for the development of the second pillar’s capacity, which will soon be implemented.
The state treasurer highlighted that Indonesia has set an example in global public goods funding through the energy transition mechanism, involving the government, the Multilateral Development Bank, and private investment. Indonesia is promoting the implementation of the capital adequacy framework issued by the Multilateral Development Bank, seizing the opportunity to improve it and private investments to fund Global Public Goods (GPG).
