G-20 News

Indonesia to focus on economic recovery during G20 presidency


Indonesia will assume the presidency of the G20 at the end of 2021 for the first time since the forum was established in 1999. Indonesia was invited to join the forum in 2008.

Italy, the current president of the G20, will hand over the presidency to Indonesia at the Rome summit, scheduled for October 30 and 31, 2021.

Indonesia was elected president of the G20 for 2022 at the G20 summit in Riyadh, Saudi Arabia, in November 2020.

He will chair the G20, on the theme “Straighten up together, get up stronger” to reflect the spirit of collective recovery, from December 1, 2021 to November 2022.

The Group of 20 or G20 is an international forum that brings together the world’s major economies. Its members represent more than 80% of world GDP (gross domestic product), 75% of world trade and 60% of the planet’s population.

G20 members include Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, United States and European Union. Spain is also invited as a permanent guest.

In fact, Indonesia, the world’s fourth most populous nation, is the only ASEAN (Association of Southeast Asian Nations) state to have been invited to join the G20.

To ensure the smooth and successful implementation of the G20 events that will be hosted by Indonesia next year, President Joko Widodo issued Decree No. 12 of 2021 on the National Organizing Committee (OC) of the Indonesian Presidency of the G20.

The members of the CO include the coordinating minister of economic affairs, Airlangga Hartarto, as president I of Sherpa Track; Minister of Foreign Affairs, Retno LP Marsudi, as President II of Sherpa Track; Minister of Finance, Sri Mulyani Indrawati, as Chairman I of Finance Track; the Governor of the Bank of Indonesia as Chairman II of Finance Track; The coordinating minister of politics, law and security, Mahfud MD, as chairman of the events; and the Minister of Communication and Computing, Johnny G. Plate, as Chairman of Communication and Media for the G20 Summit.

Indonesia will have seven priority agendas for the financial side of Indonesia’s G20 presidency in 2022, according to Minister Indrawati.

The first priority is the coordination of global policies to revive the economy, including the exit policy to support economic growth in each country, as well as at the global level, and at the same time, ensure that it becomes more sustainable, she said.

The second priority concerns the impact of the pandemic on the health and economic sectors, which has resulted in supply disruptions and businesses in equilibrium, she informed.

The third priority is the central bank’s digital currency (CBDC), Indrawati said. Sustainable finance is the fourth on the agenda and covers the roles of the financial sector in supporting important global agendas, including climate change and the green finance mechanism that aims to create a green economic transformation and sustainable, she added.

The fifth priority is cross-border payment and will focus on optimizing digitization to increase productivity and at the same time face the risks and challenges that may arise, she revealed.

The sixth priority is financial inclusion, which includes SMEs, focusing on the use of open banking to encourage productivity and support economic and financial inclusion, including in cross-border aspects, she said. declared.

The seventh priority is the progress and implementation of the principles of global taxation, including those related to tax incentives, she added.

Related news: Indonesia unveils strategies to chair 2022 G20 presidency

“Indeed, this is one of the important priorities for Indonesia, which is currently carrying out tax reform,” the minister said.

Meanwhile, when it comes to national benefits, the G20 presidency is expected to boost domestic consumption up to 1.7 trillion rupees, according to Minister Hartarto.

“Domestic consumption is expected to reach 1.7 trillion rupees, gross domestic product (is expected) to increase to 7.47 billion rupees and (generate enough) jobs to absorb around 33,000 workers in various industries,” said Hartarto in September. 15, 2021.

The minister noted that the figures are expected to increase by 1.5 to twice in total compared to those of the meeting of the International Monetary Fund and the World Bank in Bali in 2018, as Indonesia plans to hold 150 meetings. during his one-year presidency.

In addition, the Indonesian government will also stress the importance of strong coordination between ministries and institutions and involvement in the 16 working groups as well as the involvement of non-governmental and civil society actors in the 10 groups. commitment.

Hartarto noted that the G20 presidency will also support social development as it will provide Indonesia with the opportunity to raise the topic of vaccine production and distribution.

“We continue to push for vaccines to become global public goods. We also encourage making vaccines more accessible to Indonesians and low-income developing countries, ”he noted.

During its presidency, Indonesia plans to hold a G20 summit in Bali in 2022 in strict compliance with health protocols.

COVID-19 Management Task Force spokesperson Professor Wiku Adisasmito expressed optimism that G20 events in Indonesia are going well.

“Indonesia will host this prestigious event. Indonesia is responsible for this event, which is why the government is trying to maintain the stability of the (COVID-19) cases,” he said.

The government is focused on achieving a mortality rate of less than 2%, active cases of less than 100,000 and a positivity rate of less than 5%, he said.

“The government will continue to do its best,” he said.

Indonesia has managed to reduce daily confirmed cases of COVID-19 by around 92% from the record figure of July 15, 2021 during the second wave of COVID-19, which was recorded at 56,757.

At the meeting of G20 health ministers held in Rome on September 5-6, 2021, several countries and international organizations praised Indonesia for drastically reducing its COVID-19 cases and for its high vaccination rate, according to Minister of Health Budi Gunadi Sadikin, who attended the meeting.

He thanked the United States, several European and Asian countries, as well as Australia for donating 40 million doses of COVID-19 vaccine to Indonesia.

As of September 20, 2021, at least 79,657,762 Indonesians have received their first dose of COVID-19 vaccine, while 45,224,650 people have received the second dose of the vaccine. Overall, the government aims to vaccinate at least 208 million people to boost herd immunity to the virus.

Related news: Indonesia’s G20 presidency to boost global recognition: INDEF
Related News: RI’s G20 Presidency Will Benefit Economy, Facilitate Social Development