JAKARTA - G20 member countries have been urged to provide significant fiscal stimuli to tackle the economic impact of the coronavirus disease (Covid-19) pandemic, said Bank Indonesia (BI) Governor Perry Warjiyo.
This was one of the issues raised in a video conference of G20 finance ministers and central bank governors which Mr Warjiyo and Finance Minister Sri Mulyani Indrawati took part in on Monday (23/3).
"Fiscal, monetary, and financial sector policies are globally and jointly made with the authority of each country. All countries have also been asked to provide significant fiscal stimuli to tackle the economic impact of the Covid-19 pandemic," said Mr Warjiyo in a press conference broadcast on BI's official YouTube channel, Tuesday (24/3).
Fiscal stimulus, he added, can ease the difficulties of those affected by the pandemic, particularly MSMEs and other businesses. In addition, the central bank have also taken several measures in response to the pandemic amid panic in global financial markets, such as slashing rates to 4.5%.
"Not only by lowering rates, but also by increasing liquidity in the financial market. The central bank is also trying to reduce the burden of banks and the financial sector in economic financing, particularly for corporates, MSMEs, and the public," said Mr Warjiyo.
Mr Warjiyo also affirmed that BI, the Ministry of Finance, the Financial Services Authority (OJK), and other relevant authorities are in close coordination to maintain macroeconomic stability and the financial system during the pandemic.
"We are working hard and coordinating intensely to maintain macroeconomic stability and the financial system and ensure we can adequately mitigate the economic impact of the Covid-19 pandemic," said Mr Warjiyo. (MS)