The G20 finance ministers and central bank governors meeting officially began as a hybrid event in Nusa Dua, Bali. This is the third FMCBG meeting of Indonesia’s G20 Presidency in the finance track. The previous meeting was held in Jakarta in February 2022 and in Washington D.C in April 2022. The FMCBG meeting is conducted for over two days. The G20 Finance ministers and Central Bank Governors Meetings aim to stimulate the global economy to recover together amid various challenges. The 3rd FMCBG meeting is attended by the largest number of delegations of Indonesia’s G20 Presidency, with 407 foreign delegations attending in person and another 120 virtually. In addition, 19 Finance Ministers and 11 Central bank Governors are also attending in person. Indonesia, as G20 President, invited the Finance Minister of Ukraine to attend the event virtually. The physical presence of most G20 delegations, invitees, and international organizations in Bali demonstrates the seriousness and global commitment to supporting Indonesia’s G20 presidency and reviving economic sustainability, particularly amid the emerging global challenges. The minister of Finance and the Governor of Bank Indonesia are hosting the meeting. In the opening remarks, Finance Minister Sri Mulyani Indrawati stated that “the G20 needs to go further by taking concrete actions based on the spirit of cooperation, collaboration and consensus to address the global challenges.”
At the meeting, delegates are discussing mostly 7 priorities and legacy agendas within the Financial Track are as following –
- Global economy and risks. Indonesia’s G20 presidency continues to discuss the latest global economic dynamics and appropriate policy response to achieve a solid, sustainable, balanced, and inclusive global economic recovery in the face of various challenges, such as escalating inflationary pressures, global supply chain disruptions, supply, and demand imbalances as well as rising energy and commodity prices due to the pandemic and ongoing war in Ukraine.
- Global health issues. The meeting is formulating efforts to revitalize the global health architecture to prepare, prevent and respond to future pandemics. All G20 members and several non-G20 countries along with international organisations have pledged their support and commitment to this multilateral fund, representing a concrete outcome of the strong leadership under Indonesia’s G20 Presidency.
- International financial architecture. The G20 is seeking ways to improve debt management for poor countries and strengthen long-term global financial resilience, including efforts to maintain sustainable foreign capital flows, while mitigating the risks posed to capital flow volatility and strengthening the global financial safety net.
- Financial sector issues. The G20 is discussing policy normalization (exit) strategies, ways to mitigate the scarring effect in the financial sector, efforts to strengthen the global financial sector through risk management, technology optimisation, and digitalisation, as well as the regulation of cross-border payments. In addition, the G20 is increasing efforts to promote financial inclusion among vulnerable groups through digitalisation.
- Sustainable finance. This year, Indonesia’s G20 Presidency is focusing on advancing three priority agendas, namely developing a transition finance framework, increasing the credibility of commitments made by financial institutions towards the green economy, enhancing sustainable finance by expanding access to green instruments as well as discussing policy instruments that could provide financing and investment incentives to support the transition.
- Infrastructure development. The G20 is discussing the development of sustainable, inclusive, accessible, and affordable infrastructure. The G20 is also formulating a framework that will expand private sector participation in the development of sustainable infrastructure.
- International taxation. G20 Finance Ministers and Central Bank Governors are also advancing the international taxation agenda by ensuring the implementation of two G20/OECD pillars as agreed in 2021
G20 finance meeting expected to conclude without a formal communique
Indonesia on Saturday urged G20 finance leaders to stay focused on their goals for global economic recovery, but sources said the meeting in Bali would likely end without a formal communique as Russia’s war in Ukraine continues to divide the group. Indonesian Finance minister who is also hosting the two-day event is expected to issue a chair’s stamen summarizing the events of the meeting instead, as reported by sources.
Another source said, “we do not expect a communique.” Ukraine finance minister Serhiy Marchenko, who addressed the meeting virtually, called for “more severe targeted sanctions” against Russia for its invasion of Ukraine. What the Kremlin calls “special Military operations” has overshadowed recent G20 meetings.
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Indonesian central bank governor Perry Warjiyo said on Saturday members had held fruitful discussions but that the G20 must deliver concrete results to support the global economy.
Warjiyo said, “It is important that we remain focused on what we have planned to achieve this year, as this will also send a positive message to the global community on the G20’s role and efforts to support the global recovery.”
Sri Mulyani hoped delegates could bridge their differences over the war to jointly address rising commodity prices, an escalating food security crisis, and the spillover effects on the ability of low-income countries to repay debt.
Other G20 nations such as China, India, and South Africa were more muted in their response.
Western sources warned earlier in the week that “it would be difficult to agree on a communique because the body works on the basis of consensus and Russia had blocked language about the cause of the economic downturn that has prompted the World Bank and International Monetary Fund to downgrade growth forecasts.” The G20’s capacity to act and communicate is very strongly hindered by the war in Ukraine, which one of the G20 members is fully responsible for,” a French finance ministry source said.