Coordinating Minister for the Economy: Increased Collaboration with the World Bank for a Stronger Global Recovery

11 Feb 2022 10:01



Coordinating Minister for the Economy: Increased Collaboration with the World Bank for a Stronger Global Recovery

Jakarta, February 11th, 2022

One of the priority issues to be discussed by the Health Working Group of the G20 Indonesia Presidency is building global health system resilience. The discussion is related to the contribution of the G20 to the global pooling resources, including technical, financial, and expertise that can be accessed by all countries, especially lowi income countries in pre, during, and post-health crises.

This was one of the topics discussed when the Coordinating Minister for Economic Affairs Airlangga Hartarto received an audience with the Vice President of the World Bank for East Asia and Pacific Manuela Manuela V. Ferro in Jakarta, Thursday (10/02). The hearing from the World Bank was to discuss the priorities of the Coordinating Ministry for Economic Affairs’s program during the Covid-19 pandemic and the World Bank's support for the Coordinating Ministry for Economic Affairs’s program in national economic recovery.

During the hearing, the World Bank stated that coordination between health and financial policy makers, multilateral financial institutions, and global health institutions needed to be improved. The multilateral approach to financing extensive immunization as a global public good based on domestic and international multi-sector collaboration also needs to be strengthened. Therefore, a more adequate, sustainable and coordinated pandemic PPR (prevention, preparedness, and response) financing is needed.

On this occasion, Coordinating Minister Airlangga conveyed the latest developments regarding Indonesia's economic growth and the development of Government programs in national economic recovery such as Value-Added Tax (VAT) and PPnBM DTP for several types of four-wheeled motorized vehicles, the KUR program, and the Cash Assistance Program for PKL, Warung, and Fishermen.

Furthermore, there was also a discussion regarding the direction of the President of the Republic of Indonesia Joko Widodo regarding the achievement of the 0% extreme poverty target in 2024 and the acceleration of poverty alleviation through increasing the effectiveness of programs and the development of integrated data. To achieve the 0% extreme poverty target, affirmative policies are needed that not only target the extreme poor, but also the poor and vulnerable. The World Bank, which has a special unit for handling extreme world poverty, said that it would assist the Government of Indonesia in realizing this directive from the President of the Republic of Indonesia.

The Coordinating Minister for Economic Affairs also conveyed the current state of national logistics, which is one of the elements that will determine the economy in Indonesia, especially in the export and import sectors. The government continues to seek to remove barriers and reduce the costs of the flow of goods in international and domestic trade. One of them is through the National Logistics Ecosystem (NLE), which is a platform that connects supply and demand for logistics to increase collaboration and synergy between Ministries/Institutions (K/L).

It is hoped that with this NLE efforts can be made to improve, simplify business processes, arrange logistics infrastructure, and harmonize national logistics policies. The World Bank will collaborate with the Coordinating Ministry for Economic Affairs and related Ministries/Agencies to develop studies and policies to accelerate the logistics process in Indonesia and to accelerate that logistics process requires the active participation of all logistics entities.

In addition, Coordinating Minister Airlangga also discussed the issue of energy transition through carbon trading and an Energy Transition Mechanism (ETM) that is fair and affordable without placing too heavy burden on society, industry, and state finances. In this regard, the Government of Indonesia has collaborated with the Asian Development Bank (ADB) by launching an ETM from coal to renewable energy.

In this ETM scheme, ADB and the Government jointly conduct a comprehensive feasibility study that focuses on the optimal business model by leveraging commercial, donor government, and philanthropic capital for the transition to decarbonization. Coordinating Minister Airlangga hopes that there will be an energy transition model that can be used as a pilot which can be replicated in the future to attract investors to participate in this energy transition scheme.

In relation to the G20 Joint Finance Health Task Force, a Task Force led jointly by Indonesia and Italy, assisted by the Secretariat at WHO and supported by the World Bank. Therefore, the World Bank is expected to formulate a policy on how to develop a sustainable financing mechanism for global health.

In the hearing, Coordinating Minister Airlangga was accompanied by the Deputy for International Economic Cooperation Coordination Edi Prio Pambudi and members of the Coordinating Minister's Assistance Team Raden Pardede. Meanwhile, Vice President of the World Bank for East Asia and Pacific Manuela Manuela V. Ferro was accompanied by Lead Economist Habib Rab and the World Bank Country Office Team for Indonesia and Timor Leste namely Country Director and Bolormaa Amgaabazar, Portfolio and Operations Manager Satu Kahkonen. (dep1/dlt/alr/fsr)


Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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