Finance Minister Hopes G20 will Become a Global Solution

Finance Minister Sri Mulyani Indrawati hopes that the G20 will be an effective solution to global problems. Earlier, US Treasury secretary Janet Yellen said the US would boycott G20 meetings if Russian officials attended

KOMPAS/FX LAKSANA AGUNG SAPUTRA

Finance Minister Sri Mulyani Indrawati.

JAKARTA, KOMPAS – Finance Minister Sri Mulyani Indrawati, who is also the Finance Track Coordinator of Indonesia’s G20 presidency, has reiterated that the G20 is a forum that offers solutions to global issues. She expressed hope that the meeting of Finance Ministers and Central Bank Governors (FMCBG) on 20 April in Washington, DC will be effective.

She made the statement following United States Treasury secretary Janet Yellen’s statement in Washington, DC, that the US would boycott the G20 meeting if Russian representatives attended.

“The G20 FMCBG meeting is expected to facilitate discussions and coordinate the right steps towards reducing global economic risks, solving food and energy problems and maintaining the momentum of global economic recovery in a sustainable and inclusive manner,” Sri Mulyani said in Jakarta in a written statement, which Kompas received on Thursday (7/4/2022).

According to Sri Mulyani, the G20 FMCBG in Washington, DC was crucial amid a global economy that was trying to recover from the impacts of the Covid-19 pandemic. A new challenge had also emerged recently, namely the war in Ukraine, which had elevated geopolitical tensions and had a spillover effect in the skyrocketing prices of food and energy commodities, which in turn had triggered severe inflation.

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All of these problems, Sri Mulyani continued, demanded very complex policies in response. Policies that were too hasty and harsh would threaten the recovery momentum.

“Without a credible exit policy, the sustainability and stability of the global economy will be under threat while we carefully manage a pandemic that is not yet fully under control. The world must be able to anticipate the possibility of a [future] pandemic,” said Sri Mulyani.

During Indonesia’s G20 presidency, three FMCBG meetings have been scheduled before culminating in the Bali summit in November. The upcoming meeting scheduled in Washington, DC is the second, with the inaugural FMCBG meeting held on 17-18 Feb. in Jakarta. The third meeting is slated to be held in Bali in mid-July.

KOMPAS/FX LAKSANA AGUNG SAPUTRA

U.S. President Joe Biden, left, and Russia’s President Vladimir Putin, right, pose for the media at Villa La Grange for the U.S.-Russia summit in Geneva, Switzerland, Wednesday, June 16, 2021.

Boycott

During the US House Committee on Financial Services hearing on Wednesday (6/4), US Treasury secretary Janet Yellen said the US would boycott G20 meetings if Russian officials or representatives attended.

“President [Joe] Biden made clear, and I certainly agree with him, that the war in Ukraine cannot allow Russia to conduct business as usual in any financial institution. He [Biden] has asked Russia to be excluded from the G20, and I have explained to my Indonesian counterparts that we will not participate in a number of meetings if Russia is present,” she said.

We will further clarify [our decision], especially since Indonesia is hosting the event.

A US Treasury spokesperson said the US would boycott the FMCBG meeting on April 20 in Washington, DC as Yellen had stated.

Moscow has said it would decide whether Russian President Vladimir Putin would attend the G20 summit based on the developing situation. “We will further clarify [our decision], especially since Indonesia is hosting the event,” said Kremlin spokesman Dmitry Peskov.

At a seminar held by Prasetiya Mulya University, Nur Hassan Wirajuda, the foreign minister from 2001 to 2009, said it would be unfortunate if there was a boycott that ended with the failure of the G20 summit.

“However, Indonesia will not be to blame,” he said. (AP/REUTERS)

This article was translated by Kesya Adhalia.