The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

10 November 2009

NO.115

Joint Statement
with
H.E. Sri Mulyani Indrawati
Minister of Finance, Republic of Indonesia

Joint Statement between H.E. Sri Mulyani Indrawati, Minister of Finance of the Republic of Indonesia and The Hon. Wayne Swan MP, Treasurer of the Commonwealth of Australia, Jakarta, 10 November 2009.

  1. H.E. Sri Mulyani Indrawati and the Hon. Wayne Swan MP held a bilateral meeting on 10 November 2009 during Treasurer Swan's official visit to Indonesia.
  2. Treasurer Swan congratulated Minister Mulyani on her reappointment as Minister of Finance, and acknowledged her achievements in economic and bureaucratic reform.
  3. The two Ministers welcomed the strong bilateral relationship between Australia and Indonesia and the continued growth in economic and people-to-people links. Ministers noted the close working relationship between the Indonesian Ministry of Finance and Australian Treasury. Minister Mulyani noted Indonesia's appreciation of the scholarships provided by Australia to support Indonesian students studying in Australia. The Ministers acknowledged the important contribution such assistance was making to the improvement of economic policy skills in Indonesia and discussed opportunities to strengthen future assistance.
  4. Ministers discussed the economic outlook, noting that the global economy appears to have stabilised although many challenges remain and economies need to remain vigilant. Treasurer Swan commented on Indonesia's resilience during the global financial crisis and congratulated Minister Mulyani on her lead role in guiding Indonesia through the crisis. Minister Mulyani referred to Australia's strong policy responses to the financial crisis and to the resilience of the Australian economy. The Ministers observed that Indonesia and Australia were among a select group of economies to have avoided a recession as a consequence of the global crisis. Treasurer Swan noted that Indonesia is the third fastest growing G20 economy, surpassed only by China and India.
  5. The Ministers welcomed the decision by Leaders at the Pittsburgh Summit designating the G20 as the premier forum for international economic cooperation. The Ministers also welcomed the outcome from the recent G20 meeting of Finance Ministers and Central Bank Governors at St Andrews, particularly the launching of the Framework for Strong, Sustainable and Balanced Growth. The Ministers observed that an important strength of the G20 process was the increased representation of the Asian region.
  6. The Ministers noted that Indonesia and Australia have been actively involved in advancing International Financial Institution (IFI) and Multilateral Development Bank (MDB) reform, with both countries co-chairing G20 working groups on the issue. They strongly supported the agreement at the London Summit to a 200 per cent general capital increase for the Asian Development Bank (ADB), which was subsequently approved at the Indonesian hosted ADB Annuals in May 2009. The Ministers agreed to continue to work closely on G20 issues.
  7. The Ministers agreed that climate change poses a significant threat to all countries and a workable solution required efforts from all. They observed that climate change financing was a central component of any climate change agreement and welcomed the useful discussion at the G20 meeting in St Andrews on the range of options on climate change financing.
  8. Treasurer Swan noted Indonesia's proactive approach to climate change as a leading example to other developing economies. The Ministers discussed progress with an Indonesian Green Paper on climate change, assisted by Australia, including sharing our respective experiences in responding to the challenges posed by climate change.
  9. The Ministers welcomed the recognition at the Fourth East Asia Summit (EAS) in Hua Hin that there should be an EAS Finance Ministers meeting at an appropriate time. They suggested holding the meeting before the Fifth East Asia Summit in 2010 and proposed G20 outreach and the implementation of G20 initiatives as key agenda items.
  10. Both Ministers acknowledged the important role APEC continues to play in increasing economic integration and its potential to support the G20 Framework for Strong, Sustainable and Balanced Growth. In particular, the Ministers agreed that the forthcoming APEC Finance Ministers Meeting should cover a broad‑ranging dialogue on fiscal sustainability issues, lifting momentum on structural reform, continued support for capital market development and efforts to meet the region's infrastructure challenge and trade financing needs.
  11. Minister Mulyani welcomed the formalization of Australia's $US 1 billion contingency loan agreement which Indonesia announced last December. Both Ministers endorsed this as an example of the close cooperation between the two countries.
  12. The Ministers noted that Australia and Indonesia are currently considering a joint feasibility study on a bilateral Free Trade Agreement (FTA). They noted that any such agreement should build on the outcomes from the ASEAN-Australia New Zealand Free Trade Agreement (AANZFTA) and could be an opportunity to deepen the economic partnership between Indonesia and Australia.

JAKARTA, INDONESIA
10 November 2009