Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati emphasized the importance of building a more inclusive global financial architecture during the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting held in South Africa.
In an official statement received in Jakarta on Saturday, Sri Mulyani stated that the global financial system must serve the full spectrum of economies — from low-income and developing countries to advanced economies.
She noted that Multilateral Development Banks (MDBs) are currently implementing the G20 MDBs Roadmap along with recommendations from the Capital Adequacy Framework (CAF) report.
Sri Mulyani also highlighted the rise of financial technologies, including crypto assets and digital currencies, as offering significant potential in terms of speed and efficiency. However, these innovations also present new risks that cannot be overlooked.
“This evolving landscape demands that G20 countries reassess the foundations of the international financial architecture to ensure it remains stable, inclusive, and relevant in an increasingly dynamic world,” she said.
The two-day meeting, held from July 17–18, 2025, brought together G20 finance ministers and central bank governors to address shared priorities and tackle current global challenges.
Key issues discussed at the meeting included the global economy, international financial architecture, sustainable finance, infrastructure, the financial sector, international taxation, and global health.
On the global economy, participants noted the growing uncertainties fueled by armed conflicts, geopolitical tensions, trade fragmentation, rising public debt, and extreme climate events.
The global economic relationship, Sri Mulyani said, is often perceived as a zero-sum game where one country’s gains come at another’s expense — a perception that must be addressed.
“Trade and investment should be instruments of shared progress, creating added value for all parties involved,” she said.
The Minister also stressed that resilient economic growth must start domestically, particularly amid rising global and environmental risks.
Indonesia, she explained, is addressing economic imbalances through a careful, measured, and countercyclical use of fiscal instruments to absorb shocks and promote structural reform.
“We are working closely with monetary authorities to build confidence and stability. Inflation stands at 1.6 percent, with a fiscal deficit of 2.5 percent,” she added.
On international taxation, Sri Mulyani underscored the need for a fair, effective, and stable tax architecture — not only to ensure global equity, but also as a prerequisite for resilience and sustainable development.
Regarding sustainable finance, G20 ministers and central bank governors emphasized the need for global coordination in developing sustainable financial frameworks, boosting interoperability and climate finance efficiency, while strengthening adaptation, resilience, and transition plans toward a low-carbon economy.
On infrastructure, G20 members reaffirmed that quality infrastructure investment is crucial to support faster and more sustainable economic growth.
In discussions on the financial sector and financial inclusion, ministers and governors reiterated their commitment to addressing vulnerabilities and promoting an open, resilient, and stable financial system. This must be underpinned by consistent, comprehensive, and timely implementation of agreed international reforms and standards, including Basel III.
