G20 host Indonesia hopes for progress in talks between finance chiefs despite wartime friction

A head of delegates prepares for a meeting on the final day of the G20 meeting of finance ministers and central bank governors in Jakarta, Indonesia, February 18, 2022. Mast Irham / Pool via REUTERS

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JAKARTA, July 13 (Reuters) – G20 finance leaders will meet in Bali this week for talks expected to include issues such as global food security and rising inflation, as host Indonesia tries to ensure friction over the war in Ukraine does not derail discussions. .

Russia’s invasion of Ukraine overshadowed a meeting of foreign ministers of the Group of 20 major economies last week, as Russia’s top diplomat walked out of the meeting and accused the West of “furious criticism”. read more

Indonesia hopes to issue a statement when the talks conclude on Saturday, although its central bank governor said the meeting would be summarized in a chairman’s statement if that was not feasible.

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“We are hoping for the best, but of course we are preparing for the worst,” said Indonesia’s central bank governor Perry Warjiyo.

“I don’t want to speculate, we’re still very much trying to come up with an announcement,” he said in an interview last week.

Indonesian officials noted disagreements between Western countries and Russia over how to draft a statement that would describe the state of the global economy and how it is affected by the war in Ukraine, which Moscow calls a “special military operation.”

At the last meeting of G20 financial leaders in Washington in April, no statement was issued and officials from some Western countries left the room when it was the Russian representative’s turn to speak.

US Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki, after a bilateral meeting in Tokyo on Tuesday, blamed the war for volatility in currency markets and for increasing the risk of a global recession. read more

Yellen and Suzuki are scheduled to attend the Bali meeting in person.

Indonesia said Russian Finance Minister Anton Siluanov would address the meeting virtually, and his deputy would travel to Bali. The Ukrainian Minister of Finance has also been invited and should attend a session virtually.

War-related issues aside, Warjiyo said the G20 has made significant progress on topics such as central bank regulatory principles on crypto and digital currencies.

Indonesia’s G20 deputy for finance, Wempi Saputra, said the group would try to devise actions to help poor countries cope with the looming food crisis by ensuring the supply and affordability of food and fertilizer.

Other topics on the agenda include the establishment of a fund under the World Bank to better prepare for future pandemics and a Resilience and Sustainability Trust at the International Monetary Fund that could be accessed by countries in need, as well as debt relief for poor countries.

Yellen called on China and other non-Paris Club creditors to cooperate “constructively” in helping low-income countries struggling with debt, saying Beijing’s lack of cooperation was “quite frustrating.”

Indonesia’s Wempi said the multinational signing of the global tax treaty, originally scheduled on the sidelines of the meetings, has been postponed. The Organization for Economic Cooperation and Development has set a new goal for the major tax overhaul to take effect in 2024, instead of 2023. Read more

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Reporting by Gayatri Suroyo, Stefanno Sulaiman and Fransiska Nangoy in Jakarta and Andrea Shalal in Tokyo; Edited by Ed Davies and Michael Perry

Our Standards: The Thomson Reuters Trust Principles.

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