Indonesia’s Strategic Role as Host of G20 2022
By: Teuku Riefky and Faradina Alifia Maizar, Researchers at LPEM FEB UI
KONTAN – (14/9/2021) 23 years ago, the Group of Twenty (G20) was formed, a discussion forum for finance ministers and central bank governors from 20 countries with the largest economies in the world. As a manifestation of coordination between state leaders, the G20 also plays a crucial role in discussions, especially those related to economy and finance.
Currently, the countries that are members of the G20 represent 60% of the world’s population and 80% of the global economy. In 2022, representatives of these countries will gather in Jakarta in connection with the appointment of Indonesia as the host of the Presidency. In order to welcome Indonesia’s G20 Presidency in 2022, the Indonesian government carries the big theme “Recover Together, Recover Stronger”. This theme was adopted taking into account the current health crisis, which requires more urgent international cooperation and coordination efforts than ever before.
Coordinating Minister for Economic Affairs Airlangga Hartarto who also served as Chair I of the Sherpa Track Division at the implementation of the G20 Indonesia explained that there were several strategic issues raised by Indonesia as the host of the G20 Presidency. First, the synergy between Indonesia and the international community in economic recovery after the COVID-19 pandemic and determining the direction of the post-crisis economy. In addition, the G20 Presidency will also be used as a means of promoting issues that are national priorities, such as digitalization, human resource development, and empowering women and youth.
On another issue, Minister of Finance Sri Mulyani who was also appointed as Chair of the Finance Track Division stated that Indonesia would prepare a sustainable finance agenda, in line with the theme carried by the Italian G20 Presidency this year. Apart from the big theme of Indonesia, which is very closely linked to post-pandemic recovery, several acute problems found in the global economy were also raised in the G20 Presidency of Indonesia. These issues include inequality, climate change, digitalization, and global geopolitical multipolarization.
Entering into the pandemic, inequality is increasingly visible, where developed countries have a much more flexible fiscal space than developing countries. This will encourage the developed countries to be able to issue a much larger amount of stimulus and encourage a faster recovery. The implication of this condition is none other than the unequal process of economic recovery at the global level. Furthermore, inequality has also hit the health aspect, where there is a gap in vaccine availability between developed and developing countries.
On the environmental aspect, the reinforcement of sufficient fiscal capacity and the availability of qualified technology can create infrastructure that is more disaster-resistant and climate change-resistant in developed countries than in developing countries. Unfortunately to date, several issues faced by developing countries around the world, including those related to aspects of development, human resources and employment, health, fiscal space, and the environment, have not been adequately discussed at the G20 forum held in Italy in 2021. As the host of the G20 next year, apart from being in a strategic position to encourage discussion of pressing issues faced by developing countries in international forums, Indonesia also plays a unique and vital role in shaping and directing global leader discussions in a more relevant direction, sustainable and inclusive.
Indonesia’s G20 presidency is expected to represent the voices of developing countries. Not only G20 member countries, but also upholding G20 multilateralism so that all G20 members can reach a consensus to jointly promote inclusive and sustainable post-COVID-19 global economic recovery and development.
The Institute for Economic and Community Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI) is a research institution under the Faculty of Economics and Business, Universitas Indonesia. LPEM FEB UI has become one of the leading academic institutions in Indonesia that plays an important role in contributing ideas through research, consultation, and education activities.
Source: Kontan Newspaper. Issue: Tuesday, September 14, 2021.
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