India briefs G20 FMs, central bank governors on its 2023 presidency agenda

India on Thursday briefed the finance ministers and central bank governors of G-20 countries about its agenda for the next year when it assumes the rotating annual presidency of the grouping.

India will take over the G20 Presidency in 2023, including the finance track. The ministers and governors have been briefed about the proposed main priority agendas from the 2023 India Presidency, Indonesian Finance Minister Sri Mulyani Indrawati told reporters during a press conference held here on the sidelines of the annual meetings of the International Monetary Fund and the World Bank.

Indonesia currently holds the presidency of G-20 countries.

On Thursday Indrawati chaired meetings of finance ministers and central bank governors of G-20 countries, which among others was attended by Union Finance Minister Nirmala Sitharaman and Reserve Bank of India Governor Shaktikanta Das.

It is during this meeting and the breakfast meeting hosted by Sitharaman earlier in the day for the finance ministers of G-20 countries that India briefed them about its proposed agenda for 2023.

Responding to a question, Indrawati refrained from sharing details of the India's proposed agenda.

I'm not commenting on that. We really supporting India presidency and their agenda. A lot of the issue is the continuation, which I think is really a welcome because a lot of them will become an issue which is also critically important, especially during 2023 which is still going to be a quite challenging economic situation, she said.

I wish India all the best to continue coordinating our best effort in averting the risk of a global economic downturn, the Indonesian Finance Minister said.

Emerging out of the fourth and the final finance ministers and central bank governors meeting under the Indonesian G20 Presidency, Indrawati said despite the fact that they faced many challenges from the beginning as the result of escalating political conflict, a war in Ukraine, and exacerbated by the worsening economic situation, the Presidency has been able to maintain the unity of the G20 as a premier global forum for economic and financial policy.

The meeting, she said, is being held at a time when the global economic situation has become more challenging. I do not think it is an exaggeration to say that the world is in a dangerous condition. The policy responses need to be specific, clear, coordinated, and well-communicated, not only a normative macro policy mix, she said.

Many countries are now facing very difficult trade-offs in designing policy responses for this perfect storm. The trade-offs between achieving stability vs. preserving growth and employment the trade-off between policy instruments (fiscal policy vs. monetary policy) to stabilise the price at the cost of weakening the economy (or even potentially creating recession) or to continue recovery and support growth at the cost of inflationary pressures, said the Indonesian Finance Minister.

Indrawati said the complex global economic challenges require strong leadership and collective action from the G20, a group comprising 85 per cent of the world's economy, to protect the livelihood of endangered people while also bringing the world back to strong, sustainable, balanced, and inclusive growth.

The complex global economic challenges also require cooperation and synchronisation in developing the right macroeconomic policy mix of fiscal, monetary, and structural policy instruments to address our common global problems and support economic recovery effectively. The appropriate policy mix is especially urgent to bring down the prolonged high inflationary pressure, she said.

The meeting discussed six agendas -- Global Economy; International Financial Architecture; Financial Sector Regulation; Infrastructure Investment; Sustainable Finance; and Sustainable Taxation. Indrawati and Bank Indonesia Governor Perry Warjiyo co-chaired the sessions.

We must go further we need to develop concrete actions by demonstrating the spirit of cooperation, collaboration, and consensus. Our shared G20 history shows us we are capable of this," she said.

Perry Warjiyo also reiterated the appreciation to the members and stated that Since the very beginning of our Presidency, the G20 has worked together to advance globally critical issues, providing concrete and collective solutions to secure the recovery".

With regard to the increasing risks of food and energy insecurity, the G20 committed to considering all tools necessary to address food and energy insecurity and the cost of living pressures experienced in many countries.

The G20 highlighted the importance of cooperation to ensure a coordinated global response to tackle food insecurity. The G20 will further progress with strategic cooperation in the India G20 Presidency next year.

Among other things, the G-20 countries reaffirmed their commitment to the implementation of the international tax package while looking forward to the full implementation of the Asia Initiative Bali Declaration on International Taxation.

G-20 reaffirmed its commitment to advance the 2022 Sustainable Finance Report, which, in addressing the priorities identified in the G20 Sustainable finance roadmap, has developed a transition finance framework to recognise climate transition activities, including energy transition, and ways to enhance the accessibility and affordability of sustainable finance.

We reaffirmed our commitment to revitalise infrastructure investment in a sustainable, inclusive, and affordable way, including tools to leverage private sector participation; mobilise financing to cities and regions; increase digital and Infratech investments, and increase sustainable and transformative infrastructure investment, said the Indonesian Finance Minister.

G-20 also reaffirmed its commitment to significant progress on the financial sector regulations and supervisory.

We have aimed to strengthen the international financial system in facing the development of the financial system, including crypto-asset activities and markets while harnessing digitalisation to increase productivity, a sustainable and inclusive economy, and the strategies to strengthen digital financial literacy, she said.