Indonesia Calls for Reform of Global Financial Architecture

TEMPO.CO, Jakarta - Indonesia has called for reform in global financial architecture in a number of international forums to create a sustainable economic growth.

Jakarta repeated the call again in G-20 summit in the Turkish city of Antalya in mid November this year.

"At the G-20 meeting Indonesia raised an important issue - reform of global financial architecture," President Joko Widodo (Jokowi) said.

Indonesia pushed for reform of global financial architecture at the summit meeting which promoted a theme of "Ensuring Inclusive and Robust Growth through Collective Action".

Jakarta has raised the same issue at the last Asian African summit meeting hosted by the country in April, 2015.

"We would continue to push for sustainable world economic growth and a fairer global economic system," the president said.

Other global issues raised at the meeting include climate change.

"Here, Indonesia confirmed commitment to take part in joint action to deal with the impact of climate change," he said, adding Indonesia also attached importance to development of renewable energy in the world.

He said as the worlds largest Muslim country and the worlds third largest democracy, Indonesia spoke about its experience in maintaining pluralism.

The president cited a number of examples of success in developing harmony between Islam and democracy.

Toward the end of 2015, there are four world summit meeting -- G-20 in Turkey, APEC in the Philippines ASEAN in Malaysia, and "the 21th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change" or the 21st COP UNFCC in Paris, France.

"As a big nation, Indonesia`s presence, role, and voice carry great weight in the meetings," the president said.

The G-20 summit is especially important amid the heavy challenge of ailing world economy, marked with volatile financial market and falling commodity prices, he added.

President Jokowi said that dependence of the world on US dollar is potential to cause global economic turbulence.

"Too much dependence on a single currency has created global distortions threatening to block global economic development," he said.

He said it is time to overhaul the global financial architecture.

"Currently, the main problem faced by the world economy is U.S. dollar liquidity in almost all emerging markets," he said.

In addition since the use of euro in 1989, there has been no new "global reserve currency" , he said.

The president said developing countries should immediately implement economic reform fundamentally.

"Concrete economic reform is urgently needed to build up market credibility and regain the confidence of investors and economic players," he said.

Fundamental economic reform needs to be followed with strong financial liquidity to ward off turbulence as a result of liquidity problem, he said.

At the G-20 forum, Indonesia asked advanced nations to show example and support efforts to reduce carbon dioxide emission in the world.

"Each country should give commitment to ensure that the COP 21 in Paris would be a success," the president said.

Indonesia hopes that the result of the Paris meeting by the end of November 2015 is sustainable and fair, he said.

ANTARA