Indonesia strengthens financial crisis protocol amid coronavirus

Few vehicles are seen on the usually busy Sudirman street as the government called on people to stay home amid the COVID-19 coronavirus outbreak in Jakarta on March 31, 2020. (File/AFP)
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Updated 01 April 2020

Indonesia strengthens financial crisis protocol amid coronavirus

  • Southeast Asia’s largest economy is expected to grow 2.3 percent in 2020
  • The rupiah will fall further to average between 17,500 to 20,000 to the dollar, Finance Minister Sri Mulyani Indrawati said

JAKARTA: Indonesia has improved its protocol to prevent a financial crisis amid the coronavirus outbreak, its finance minister said on Wednesday as she flagged a worst case scenario of contraction in 2020 GDP growth and the rupiah falling to a historic low.

Finance Minister Sri Mulyani Indrawati said the protocol to help failing banks has been upgraded to allow for early responses by all financial authorities as part of an emergency regulation that President Joko Widodo announced on Tuesday.

Southeast Asia’s largest economy is expected to grow 2.3 percent in 2020, but the government has prepared for a worse scenario of a contraction of 0.4 percent, Indrawati said. Her scenarios also include the rupiah falling further to average between 17,500 to 20,000 to the dollar, the weakest on record, compared to the 16,380 exchange rate at 0320 GMT on Wednesday.


‘Political reconciliation’ with Pakistan top priority: Afghan envoy Daudzai

Updated 09 July 2020

‘Political reconciliation’ with Pakistan top priority: Afghan envoy Daudzai

  • Pakistan played positive role in US-Taliban peace talks, says diplomat

PESHAWAR: Afghanistan’s newly appointed special envoy for Pakistan has had put “mending political relations” between the two estranged nations as one of his top priorities.

Mohammed Umer Daudzai, on Tuesday said that his primary focus would be to ensure lasting peace in Afghanistan and maintain strong ties with Pakistan, especially after Islamabad’s key role in the Afghan peace process earlier this year.

In an exclusive interview, the diplomat told Arab News: “Two areas have been identified to focus on with renewed vigor, such as lasting peace in Afghanistan and cementing Pak-Afghan bilateral ties in economic, social, political and other areas.”

In order to achieve these aims, he said, efforts would be intensified “to mend political relations” between the neighboring countries.

Pakistan and Afghanistan share a 2,600-kilometer porous border and have been at odds for years. Bonds between them have been particularly strained due to a deep mistrust and allegations of cross-border infiltration by militants.

Kabul has blamed Islamabad for harboring Taliban leaders after they were ousted from power in 2001. But Pakistan has denied the allegations and, instead, accused Kabul of providing refuge to anti-Pakistan militants – a claim rejected by Afghanistan.

Daudzai said his immediate priority would be to focus on “political reconciliation” between the two countries, especially in the backdrop of a historic peace agreement signed in February this year when Pakistan played a crucial role in facilitating a troop withdrawal deal between the US and the Taliban to end the decades-old Afghan conflict. “Afghanistan needs political reconciliation which the Afghan government has already been working on to achieve bottom-up harmony,” he added.

Daudzai’s appointment Monday by Afghan President Ashraf Ghani took place days after Islamabad chose Mohammed Sadiq as Pakistani Prime Minister Imran Khan’s special representative for Afghanistan.

Reiterating the need to maintain strong bilateral ties with all of its neighbors, Daudzai said Pakistan’s role was of paramount importance to Afghanistan.

“Pakistan has a positive role in the US-Taliban peace talks, and now Islamabad could play a highly significant role in the imminent intra-Afghan talks. I will explore all options for a level-playing field for the success of all these initiatives,” he said, referring in part to crucial peace talks between the Afghan government and the Taliban which were delayed due to a stalemate in a prisoner exchange program – a key condition of the Feb. 29 peace deal.

Under the agreement, up to 5,000 Taliban prisoners and around 1,000 government prisoners were to be freed by March 10. So far, Afghanistan has released 3,000 prisoners, while the Taliban have freed 500. Daudzai said that while dates had yet to be finalized, the intra-Afghan dialogue could begin “within weeks.”

He added: “A date for intra-Afghan talks hasn’t been identified yet because there is a stalemate on prisoners’ release. But I am sure they (the talks) will be kicked off within weeks.”

Experts say Daudzai’s appointment could give “fresh momentum” to the stalled process and revitalize ties between the two estranged neighbors.

“Mohammed Sadiq’s appointment...could lead Kabul-Islamabad to a close liaison and better coordination,” Irfanullah Khan, an MPhil scholar and expert on Afghan affairs, told Arab News.

Daudzai said that he would be visiting Islamabad to kickstart the process as soon as the coronavirus disease-related travel restrictions were eased.

Prior to being appointed as the special envoy, he had served as Afghanistan’s ambassador to Pakistan from April 2011 to August 2013.

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