WASHINGTON, October 10 – Today, World Bank Group President David Malpass met with Sri Mulyani Indrawati, Minister of Finance of Indonesia.
President Malpass and Minister Indrawati discussed recent global macroeconomic developments, including the Indonesian economy’s recovery efforts from COVID-19, interventions to reduce inflation, and World Bank Group (WBG) support for greater tax and financial sector reforms. President Malpass noted Indonesia’s strong recovery and proactive management of both fiscal pressures and social needs and was glad to hear Minister Indrawati’s thoughts on Indonesia’s efforts to manage potential downside risks.
President Malpass and Minister Indrawati also spoke on Indonesia’s energy transition efforts, during which President Malpass commended Indonesia’s decision to reduce subsidy costs and reaffirmed the World Bank Group’s (WBG) commitment to supporting Indonesia’s energy sector reforms. President Malpass and Minister Indrawati’s discussed ways to strengthen Indonesia’s efforts to reduce greenhouse gas emissions and President Malpass highlighted the WBG’s upcoming Scaling Up Climate by Lowering Emissions (SCALE) umbrella trust fund.
President Malpass noted to Minister Indrawati the good progress made by the Government of Indonesia through the Omnibus Law on Job Creation and urged further targeted trade reforms to maximize positive effects. President Malpass also took note of the strong benefits Indonesia has seen from targeted interventions – including food and cash transfers to the poor and vulnerable – and urged greater adoption of similar measures to mitigate food price shocks. President Malpass also emphasized the WBG’s support for transparency in pension fund outlays, State Owned Enterprise (SOE) reform and divestitures, standardization of contracts, Principles for Quality Infrastructure Investment, and infrastructure as an asset class. President Malpass affirmed to Minister Indrawati the WBG’s readiness to support digitalization efforts through analytical support and regional efforts for digital development. President Malpass and Minister Indrawati also discussed the WBG’s strong engagement with regards to the G20’s Capital Adequacy Framework (CAF) recommendations.
President Malpass was happy to hear key priorities of Indonesia’s G20 Presidency from Minister Indrawati and thanked the Minister for Indonesia’s generous contribution to the WBG’s Pandemic Preparedness and Response Financial Intermediary Fund (PPR FIF).