Antalya (Antara Bali) - China has increased its liquidity support for Indonesia through the scheme of "bilateral swap currency arrangement" from US$15 billion to US$20 billion.
"Indonesia welcomes the additional currency liquidity from US$15 billion to US$20 billion," said Finance Minister Bambang Brodjonegoro in this Turkish city on Sunday night.
The minister said the Chinese aid could be used to strengthen Indonesia's foreign exchange reserve any time needed.
He said on the sidelines of the G-20 summit meeting , the governments of Indonesia and China held a bilateral meeting.
In addition to liquidity support,China also pledged to invest in infrastructure and manufacturing industries in Indonesia.
"One is in aluminum industry . This is development of downstream bauxite industry," he said.
China also pledged support in financing infrastructure projects in Indonesia through Asia Investment and Infrastructure Bank (AIIB) in management and expansion of projects.
On that occasion, China asked for Indonesian support in its bid for chairmanship of G-20 in 2016 .
China proposed four themes -- innovation, international financial architecture , development issue and trade and investment.
The finance minister said the G-20 meeting discussed issue of global economic slowdown and IMF's prediction of global economic growth of 3.1 percent in 2015 lower than the growth of 3.2 percent in 2014, but up in 2016 to 3.6 percent.
The minister said the meeting is set to cope with the economic slowdown . The indication of economic slowdown is the anomaly that the world trade growth was lower than GDP growth.
Slowdown has to be coped with , first by reviving domestic economy such as done by China and Indonesia and trade protection has to be removed, he said .
Bambang said President Joko Widodo (Jokowi) spoke about Indonesia launching large scale infrastructure development in a bid to cope with the economic slowdown.
The president also spoke about the need for reform in global financial architecture such as IMF and the use of currencies other than U.S. dollar in bilateral trade to reduce dependence on U.S. dollar.
Indonesia is also committed to boosting economic growth in 2016, the minister said.
The keys are stimulus packages to boost investment and improve the purchasing power of the people, he added.
"Indonesia supports cooperation in taxation and it is expected that there would be no pricing transfer practice in the form of a cut in state revenues of a country that taxation data could be accessed by anyone and tax evasion could be avoided," he said. (WDY)
