Indonesian Minister of Finance Sri Mulyani travels to Incheon, South Korea to take part in the 26th ASEAN +3 Finance Ministers and Central Bank Governors (AFMGM+3) on May 2, 2023. The Minister is meeting with the President of the Asian Development Bank (ADB) Masatsugu Asakawa, South Korean President Yoon Suk Yeol, Japanese Finance Minister Shun’ichi Suzuki, and Indian Finance Minister Nirmala Sitharaman.
“It is a very valuable opportunity to discuss bilateral relations between South Korea, both with ADB and with Indonesia and other countries that are also attending,” said Sri Mulyani on May 4, 2023.
During face-to-face meeting with the President of the Asian Development Bank (ADB) Masatsugu Asakawa on the sidelines of ADB’s 56th Annual Meeting in South Korea, Sri discussed a number of important points between ASEAN and ADB regarding ADB’s support for the G20 and G7.
At the meeting ADB provide assurance that a sustainable and inclusive recovery for developing country members by expanding its lending capacity, to contribute more to regional public issues such as climate change.
On the same day, Minister Sri also discussed cooperation with the Ministers of Finance of Japan, South Korea and Fiji. “All of them talk about constructive and productive cooperation between Indonesia and these countries,” said Sri.
“Innovative financing mechanisms are needed to attract private and institutional capital-along with public funds-to finance critical infrastructure that will create jobs and generate income for the local economy,” said Woochong Um, ADB’s Managing Director General at the meeting.
Based on the ADB report, the ASEAN economy requires at least a total infrastructure investment estimated at US$ 184 billion per year. “Narrowing the infrastructure financing gap will be critical for economies to achieve their economic and social goals. Private sector participation is key,” Woochong said.
Sri Mulyani revealed that the discussion with ADB covered a number of important points such as updates on the Capital Adequacy Framework (CAF), Indonesia’s contribution to ADB, the energy transition mechanism, and ADB’s support for the ASEAN Infrastructure Fund Recapitalization under Indonesia’s chairmanship.
So far, one of the founders of ADB since 1966 and the 6th largest shareholder, Asagawa is very close to Indonesia and often meets and exchanges ideas about the Indonesian and Asian economies.
“A very productive discussion. I hope that the relationship between Indonesia and ADB will continue to be strong and mutually reinforcing,” said Mulyani.
In addition, Mulyani met with the Extraordinary and Plenipotentiary Ambassador (LBBP) of the Republic of Indonesia to the Republic of Korea, Gandi Sulistiyanto Soeherman in a business forum to bring together the Government of Indonesia with a number of potential investors in Indonesia regarding renewable energy.
According to Mulyani, Indonesia must commit to a number of issues to achieve fair and affordable energy transition in the energy sector, such as:
- Stability of availability of essential services such as electricity;
- Price stability for energy, food and public transportation;
- Social protection for the poor and vulnerable; And
- Application of the principles of sustainable development.