To be reported on 14 October 2018 (16.00 WIB) and thereafter.

The series of annual IMF-World Bank meetings have ended this week. During the meeting, there were approximately 8 issues that became the main topic of discussion, including the digital economy, urbanization, human development, disaster risk financing, climate change, infrastructure, international finance, and sharia finance. Apart from being discussed through a meeting of member countries, these topics were also discussed in discussions and seminars which lasted for 7 days in the integrated area of ​​Nusa Dua, Bali.

From the world meeting, there were several major agreements and commitments that were considered beneficial for the Indonesian economy. Among them are in the field of digital economics and finance (financial technology-fintech) through the 12 Bali Fintech Principles agreement; human resource development (Human Capital Project) in which Indonesia will be a pioneer – as part of the success of sustainable development goals; assistance for the handling of victims and recovery of the impact of natural disasters in Palu and Lombok; as well as cooperation in improving the digital economy and several investment commitments, especially in the infrastructure sector, most of which work with BUMN. Indonesia will also cooperate with the Singapore central bank regarding swaps and repos in order to strengthen the cushion of foreign exchange reserves. In addition, Indonesia also had the opportunity to introduce and popularize for the first time the Islamic financial instrument in the form of Green Sukuk which is also claimed as a form of commitment to the green economy.

In the series of meetings, the world was also reminded of the handling of the effects of trade wars which must be controlled properly, the impact of global warming, the risk of natural disasters, the risk of debt, and the threat of malnutrition which worsens the quality of human development and poverty reduction in all countries in the world. Furthermore, the world is reminded of the impact of global economic growth which must be handled carefully, especially due to the trade war between the United States and China which also affects emerging market countries, including Indonesia. Including the impact of The FED’s policy in raising interest rates which can weaken the exchange rate of currencies of other countries in the world. Christine Lagarde – IMF Managing Director stated “Is the economy strong enough? I said no. We clearly see that the economic growth for the past three years is 3.7%. ”He said at BICC-Bali three days ago, as quoted by Kompas.

Maryati Abdullah, Coordinator of Publish What You Pay (PWYP) Indonesia, who was also attending the meeting in Bali emphasized the importance of the Indonesian Government to maintain economic and fiscal resilience and resilience from the risks of global change, especially when the world is faced with the challenges of disaster risk and current global warming. “The government must be able to control the fiscal deficit, especially from imports of crude oil and fuel, so as not to further enlarge the trade balance minus and worsen the rupiah exchange rate. If raising fuel prices is not the right choice at this time – because of the fear of decreasing purchasing power, the Government must monitor the distribution of subsidized fuel and carry out a transition strategy from an economy based on fossil energy to low carbon energy, this is the time to accelerate policies that support renewable energy. as mentioned in President Jokowi’s speech at the IMF / WB meeting two days ago, “he said.

Meanwhile, Dadang Tri Sasongko, Secretary-General of Transparency International Indonesia (TII) urged that in carrying out various development projects, the Government should increase efficiency by tightening opportunities for leakage and corruption. This includes encouraging projects with strict due diligence – including preventing tax evasion and money laundering practices. “Public Private Partnership (PPP) projects must be carried out in a transparent and accountable manner, with supervision from the public, including grant assistance for natural disaster management which will be provided by the World Bank,” he added in Bali.

Regarding low-carbon development, Maryati Abdullah added, efforts are needed that are planned, measured, and targeted at outcomes in mitigating and adapting to the impacts of global warming, including reducing greenhouse gas emissions through reducing deforestation and degradation. This is made possible, among others, by providing an ecologically-based fiscal transfer scheme that provides incentives for the Government, both central and subnational, to protect and conserve forests. “The concept of a fiscal transfer scheme at the regional level can be developed for certain regions through the existing discretionary loopholes and space for fiscal decentralization, and this effort must certainly be supported through the collaboration of various parties,” he said.