Jakarta: The G20 forum offers a noteworthy contribution in setting a standard and resolving global economic challenges, Finance Minister Sri Mulyani Indrawati stated at a press conference here on Thursday.
“G20 has proven to be an important international forum, with very significant contribution to determining the global standard,” she affirmed.
G20 collaborates with international organizations to formulate concrete actions and policies in setting the standard, principle, and guideline to handle global economic challenges, she explained.
The G20 comprises 19 member countries in addition to the European Union that has a share of 80 percent of the global gross domestic product (GDP), 75 percent of the international trade, and 60 percent of the global population.
From such membership, it can be observed that G20 has a significant impact on the global economy, as it plays a vital part in the global GDP and population, the minister noted.
Ever since the 2008-2009 global financial crisis, G20 has made important strides in reforming the global finance management by applying macroeconomic and macroprudential regulation.
This was done since the global financial crisis at the time came from the finance sector, primarily banking.
G20 also plays a crucial role in strengthening the international finance regulation system, including boosting coordination between countries.
“G20 has asserted itself as a very important and valuable forum. They also formulated several very important decisions that regulate and affect the global economy in a significant manner,” Indrawati affirmed.
The G20 forum offers broad opportunities for the world’s primary economic leaders to cooperate and discuss efforts to revive global growth, support reformation of the global finance system, and handle critical problems.
“For instance, the problems of COVID-19 and climate change that we face today,” she pointed out.