These Are Five Major Issues at the Annual Meetings 2018

Jakarta – There are five main issues about Indonesia that will be discussed during Annual Meetings of IMF-World Bank Group 2018 from 8 to 14 October 2018 in Bali.

The first topic is strengthening International Monetary System or IMS. This relates to monetary policy normalization applied by developed countries that may lead to the stability of global financial system. Many nations, especially developing countries, are required to understand the influences of the normalization policy taken by the developed ones to enable them mitigating potential risks that may arise.  

“One of the mitigations that become the focus of the discussion is synchronizing the normalization policy taken by the developed countries and responses from the developing countries through strengthening Global Financial Safety Net or GFSN by pushing collaborations between GFSN and Regional Financing Arrangements (RFA),” said Head of the Special Unit of the Annual Meetings of the IMF-World Bank (UKPTI) Bank Indonesia, Peter Jacobs, in a press conference at the BI office on Wednesday, 5 September 2018. 

The second theme is digital economy. According to Peter Jacobs, various risks influence the development of the digital economy. As such, there are several things that need to be addressed and be talked during the Annual Meetings 2018. 

“For example the impacts of the digital economy toward economy, payment system, central bank operation, cross-border arrangement and collaboration,” he said. 

The third theme is infrastructure. He said that developing countries were requiring funding to finance infrastructure projects that would spur sustainable economic growth. Active role from private sector to support the infrastructure development funding helps making the program a successful one. Discussing the topic at the Annual Meetings 2018 is expected to yield a clear and consistent policy framework. 

“In addition, a good management, supportive business climate and infrastructure financing model innovation to improve the role of the private sector in funding the infrastructure projects,” Peter said. 

The fourth issue relates to the economic element strengthening and sharia finance. Sharia economy and finance is regarded to have a quite significant role in helping creating a sustainable economic growth, either in developed or developing countries. 

According to Peter, sharia financial instruments, such as sukuk or zakat-based and wakaf or benefaction, have potentials to support economic growth as the sources of infrastructure funding. Thus far, Islamic countries in Asia and Middle East have arranged International Standard for WAQF that is expected to support sharia financial economic growth. 

“Annual Meetings 2018 will open opportunities for Indonesia to show progress in sharia economy and finance,” Peter said. 

“The fifth, issues related to fiscal sector, such as urbanization, digital economy, human capital, disaster-risk management, climate change and infrastructure funding,” Peter said. 

He said that the activities in the Annual Meetings 2018 were expected to serve as a strategic momentum for talking about issues that were faced by many countries in Asia region, particularly Indonesia, as well as open rooms for showcasing Indonesia’s reformed and resilient economy. 

Furthermore, Peter said, the discussions of the five issues were expected to result in significant steps to boost Indonesia’s economic resilience. 

“The momentum also becomes Indonesia’s chance to show progress it has achieved as a nation with reformed, resilient and progressive nation,” he said. 

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