BI Emphasizes Importance of Addressing Impact of Weak Global Economy at World Bank Meeting

TEMPO.CO, Jakarta – Bank Indonesia (BI) attended the annual meeting of the International Monetary Fund (IMF) and World Bank in Washington D.C, United States, on October 22-26, 2024. At the meeting, BI representatives emphasized efforts to address the spillover effects of the global economy on developing countries.

Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, stated that BI delegation emphasized the need for consistent policies and actions in dealing with global uncertainties. In this regard, he mentioned the flexibility of using a mix of central bank policies.

“Support from International Financial Institutions (IFIs) to developing countries to strengthen the formulation of such policy mixes is crucial,” said Ramdan in a written statement on Saturday, October 26, 2024.

Furthermore, BI stressed that policy coordination between fiscal and monetary policies and structural reforms are essential efforts to maintain macroeconomic stability and economic growth. In strengthening multilateral cooperation, BI has expressed readiness to support the implementation of the 16th General Review of Quota agreement.

According to Ramdan, this agreement will enhance the IMF’s capacity as a global financial safety net. It also pushes for adjustments to the IMF quota formula to strengthen the representation of developing countries in the IMF through the 17th General Review of Quota.

In a meeting of Finance Ministers and Central Bank Governors of G20 countries at the forum, Ramdan mentioned that the Global Policy Agenda of the IMF was agreed upon to promote global economic recovery and address global growth challenges. The Indonesian delegation was represented by BI’s Deputy Governor, Filianingsih Hendarta, and the Vice Minister of Finance of the Republic of Indonesia, Thomas Djiwandono.

One recommendation for policymakers is to focus on ensuring inflation meets the target and maintaining financial system stability. Additionally, fiscal consolidation is needed to sustain development.

“And carry out structural reforms to boost productivity and labor prospects,” said Ramdan.

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