The importance of the policy mix was conveyed in the first meeting of finance ministers and central bank governors under India’s G20 Presidency, which took place on February 24-25, 2023 in Bengaluru, India.
Jakarta (Indonesia Window) – The Governor of Bank Indonesia (BI), Perry Warjiyo, conveyed the importance of a well-calibrated, well-planned and well-communicated policy mix, amidst the challenges of the latest global conditions.
Perry Warjiyo conveyed the importance of the policy mix at the first meeting of finance ministers and central bank governors under India’s G20 Presidency, which took place on February 24-25, 2023 in Bengaluru, India, central bank Bank Indonesia said in a written statement as quoted by Indonesia Window on Wednesday.
On the occasion, Perry also emphasized the importance of policy synergy between the central bank and the government to overcome increasingly complex economic challenges.
The BI governor likewise said that the implementation of policy synergy among BI, the government and related parties have helped control inflation, and make efforts to maintain macroeconomic and financial system stability amidst the current global challenges.
In the midst of the challenges of the latest global conditions related to inflation, food and energy growth, financial conditions and geopolitical issues, the G20 countries agreed to consistently strengthen cooperation to overcome these problems.
The meeting was attended by all the G20 members, invited countries (Bangladesh, the Netherlands, Mauritius, Egypt, Nigeria, Oman, Singapore, Spain, Switzerland and the United Arab Emirates), as well as international organizations.
Minister of Finance Sri Mulyani Indrawati and Governor of Bank Indonesia Perry Warjiyo led the Indonesian delegation at the meeting.
India’s G20 Presidency under the theme ‘One Earth, One Family, One Future’ discussed various important global economic issues, namely international financial architecture, sustainable finance, infrastructure, financial sector financial inclusion, global economy, health and international taxation.
Those various topics have significance for the current global economy amid conditions of slowing economic growth, high inflation rates, tightening financial conditions, food and energy vulnerabilities, as well as the vulnerabilities faced by developing countries.
Apart from that, the issue of the war in Ukraine has also become a concern of the G20 countries because it has been going on for one year and has caused a deterioration in the global economy.
In this regard, the G20 countries agreed to strengthen multilateral cooperation in order to boost economic growth, as well as overcome the vulnerabilities that occur.
Furthermore, technological developments have changed the landscape of the global financial sector which is marked by the rapid development of crypto assets and also efforts to increase financial inclusion.
In this regard, the G20 countries support efforts to strengthen regulation and supervision in the financial sector, particularly with regard to crypto assets, non-bank financial institutions and cross-border payment systems.
G20 finance ministers and central bank governors are also committed to supporting the development of financial inclusion through the utilization of public digital infrastructure.
Reporting by Indonesia Window