Indonesia underscores debt restructuring for low-income countries

Bogor, W Java (Indonesia Window) – Indonesian President Joko Widodo has underscored the importance of debt restructuring assistance for low-income countries, especially from large debt-giving countries, in support of the world economic recovery.

In the company of Foreign Minister Retno Marsudi, the Indonesian head of state made the remarks at the first day of the G20 Summit virtually from the presidential palace in Bogor, West Java, on Saturday evening (Nov 21).

The debt restructuring should be accompanied by improved debt management or sound debt organizing, the president was quoted by the foreign minister as saying.

“The president said that the UNCTAD (United Nations Conference on Trade and Development) has requested financial support of 2.5 trillion U.S. dollars so that developing countries are able to get out of economic downturns. Developing countries need fiscal space for economic recovery,” the minister said.

Likewise, the head of state conveyed the importance of continuing to provide extraordinary support for fiscal, monetary and financial sector policies, the minister said, adding that the president also raised the fiscal flexibility of developing countries needed to finance social safety net, boost domestic consumption, and drive small and medium-sized economies.

“The president reminded the UN Secretary General’s statement regarding the need for strong solidarity for developing countries. Without the assistance of the G20 countries, developing and underdeveloped countries will not easily recover from the pandemic and economic downturn,” she said.

On the occasion, the Indonesian president who is known as Jokowi also called for the important funding for health recovery, saying that the world will not be healthy unless all countries are healthy and the vaccine is one of the ammunitions.

According to him, the world is currently watching and waiting for the meeting of the leaders of the G20 countries who are expected to bring the world out of the health crisis and economic downturn due to the COVID-19 pandemic.

“The world is waiting for the leadership of the G20 to come out of the health crisis and to get out of the economic downturn,” Jokowi said as quoted by the foreign minister.

Reporting by Indonesia Window