The convention of first Finance and Central Bank Deputies Meeting (FCBD) on December 9-10, 2021, which jumpstarted Indonesia’s G20 Presidency in the finance track was smooth and filled with productive discussion of agenda. In addition, the meeting received appreciation from G20 members, invitee countries, and international organization. This was stated in a press conference attended by Expert Staff to Minister of Finance for Macroeconomics and Finance, Wempi Saputra, and Deputy Governor of BI, Dody Budi Waluyo, today (Dec. 10) in Nusa Dua, Bali.
“The G20 is a forum for international cooperation where agendas for global economic order reform are discussed. By becoming the G20 Presidency, Indonesia leads the discussion on global economic and financial reform agendas to create a better governance and operating environment for global economy and finances and support the ongoing global economic recovery process.” said Wempi Saputra, Expert Staff to the Minister of Finance for Macroeconomics and International Finance as the G20 Deputy for Finance.
The Deputy Governor of BI, Dody Budi Waluyo, said, “The quality of preparation for the Indonesian Presidency was appreciated by all participants in terms of substance and implementation of events that took place in a hybrid manner with strict health protocols. We appreciate all participants in the Finance Track for their strong inter-agency collaboration, support from the Bali Provincial Government and also media partners.” Furthermore, Dody said that the six agendas raised in the Indonesian Presidency had been discussed with all participants and received good support.
FCBD covered 6 topics which were discussed in 6 sessions. The main issues discussed in session 1 included (i) the global economic outlook and risks; (ii) normalization of policies related to the pandemic; and (iii) the long-term impact of the pandemic. In the discussion of policy normalization related to the pandemic, the majority of members raised the importance of coordinating vaccine distribution and the need for vaccine funding, as well as the need for proper communication and phasing in policy normalization. In addition, structural reforms to increase efficiency and productivity are considered to be able to support efforts to overcome the long-term impact of the pandemic. In session 2, the discussion covered the issues of (i) the International Financial Safety Net; (ii) poor countries debt; and (iii) Central Bank Digital Currency. The discussion focused on the role of the G20 in maintaining global financial stability amidst increasing uncertainty, as well as joint efforts to address risks and support vulnerable countries.
Session 3 saw discussions on how to strengthen financial sector stability to promote inclusive and sustainable economic recovery. Discussions on the agenda of financial sector regulation include normalization of pandemic-related policies in the financial sector in order to support recovery and maintain financial sector stability. Also discussed were the efforts to overcome the long-term impact of the pandemic on the financial sector by continuing financial sector reforms to strengthen financial sector resilience and encourage intermediation. Other agendas that were also raised included efforts to strengthen non-bank financial institutions (NBFIs) resilience, especially those related to risk mitigation efforts, digital financial risk identification, as well as efforts to encourage the financial sector role in supporting sustainable financing and efforts to expand financial inclusion.
Session 4 discussed sustainable finance in relation to environmental-related agendas where the Deputies expressed support for the transition to a more equitable and affordable green economy. Furthermore, in session 5, the issue of quality and sustainable infrastructure was discussed. The deputies also discussed the importance of infrastructure inclusiveness in local governments. The meeting was concluded with a discussion on international taxation where the Deputies agreed to immediately implement Pillar 1 and Pillar 2 to create a more fair and stable taxation architecture.
The FCBD was held in a hybrid manner and attended by G20 members, invitee countries, 20 international organizations, and 3 regional organizations. The results of the discussion of the first deputies meeting will be further discussed in a more detail and concrete manner at the working group level of which the result will be raised to the ministerial level and at the summit.