What to Expect From Indonesia’s G20 PresidencyBy Cheppy Triprakoso | Tue, 04/19/2022 - 09:00
The Group of Twenty (G20) is a collection of 20 of the world’s biggest economies. This forum focuses on economic and development policy coordination. For the first time ever, Indonesia holds the G20 Presidency in 2022, from December 2021 to Nov. 30, 2022, to be exact. As the global pandemic continues to affect everyone, Indonesia is pursuing “Recover Together, Recover Stronger” as the central theme for its presidency. Recognizing the importance of collective action among major developed countries and emerging economies, Indonesia will focus on three priority issues, namely: Global Health Architecture, Digital Transformation, and Sustainable Energy Transition.
Global Health Architecture is the main goal of this year’s presidency as the world is still recovering from the pandemic. COVID-19 has signified the capability gap of nations in responding to health threats. Global health cooperation is needed more than ever to overcome existing conditions and increase global health resilience. One of the major concerns within the global health architecture is Prevention, Preparedness, and Response (PPR) financing. In this instance, G20 has established the Joint Finance and Health Task Force (JHFTF), which will address the possibilities for establishing G20-driven, inclusive international funding flows in realizing the PPR.
Recovery from the global pandemic requires not only improvements in health architecture but also transformation across all sectors. In this day and age, digital transformation will play a significant role in achieving a post-pandemic recovery. Digital transformation can improve productivity growth and diversification, which will foster the well-being of communities. The G20, through the Digital Economy Working Group (DEWG), will encourage conversations on connectivity and post-COVID-19 recovery, digital skills, digital literacy, cross-border data flow and data free-flow with trust.
The third main goal for 2022 is a fair and affordable transition to clean energy. G20 members account for over 75 percent of global energy demand; therefore, they bear a strategic role in promoting cleaner energy. The Energy Transitions Working Group completed its first meeting on March 24-25, 2022, discussing energy security, access, and efficiency, as well as the transition to sustainable energy through innovation and potential investment in green technology.
As a fellow member of the G20, Mexico will play a significant role in the G20 meetings this year. The country will be included in the decision-making process in terms of international macroeconomic and monetary policy coordination. Mexico held the G20 presidency in 2012 and adopted the Los Cabos Action Plan that contains key commitments to coordinate fiscal and monetary policies. Mexico’s Foreign Minister Marcelo Ebrard Casaubon announced Mexico’s support for Indonesia’s presidency during a side meeting of the G20 Summit in Rome, on Oct. 29, 2021.
Both Mexico and Indonesia represent developing countries in the biggest economic forum. It means many Mexican concerns, such as economic growth, sustainable development, energy efficiency, trade and investment, food security, the fight against corruption, and climate change mitigation, will resonate with Indonesian counterparts.
From a business perspective, the most important aspect of the G20 is the Business 20 (B20). B20 is the official G20 forum with the business community. The inception meeting was convened on Jan. 27-28, 2022, attended by more than 2.000 top executives from leading multinational companies and government delegations.
B20 is expected to provide formulations and feedback on economic recovery post-pandemic. Indonesian President Joko “Jokowi” Widodo highlighted several crucial issues at the meeting, including the elimination of digital inequality, equitable distribution of green economy financing as well as global cybercrime.
The B20 is establishing six task forces and one action council to deal with the issues, namely Digitalization, Energy, Sustainability & Climate, Finance & Infrastructure, Future of Work & Education, Trade & Investment, and Integrity & Compliance, as well as Woman in Business Action Council. Mexican businesspersons, along with business communities from other members, will be invited to each task force and action council. The collaboration will deliver concrete, actionable policy recommendations to provide access to affordable, long-term and low-cost financing to accelerate the global recovery.
While the theme “Recover Together, Recover Stronger” is focused on the recovery efforts due to the COVID19 pandemic, the world is facing another challenge. Earlier this year, we witnessed the unacceptable military attack on Ukraine. It has put people’s lives in danger, threatens regional and global peace, as well as affected the world economy. As G20 chairman, Indonesia calls for an end to this situation, a cessation of hostilities, and to put forward peaceful discussion to prevent further deterioration.
As the world’s economy is still recovering, now is not the time for geopolitical rivalry and tension, as stated by President Widodo at the 1st G20 Finance Ministers and Central Bank Governors Meeting in Jakarta. The president called on G20 members to focus on synergies and collaboration. The G20 together accounts for around 80 percent of global GDP, meaning that the members have a significant role in the global economy. Therefore, each G20 member needs to contribute to collaborative action toward a stronger recovery.
Dynamic world issues will be discussed throughout the year in multiple ministerial meetings, working groups, initiatives and engagement groups. The meetings will culminate in the Bali Summit, which will take place on Nov. 15-16, 2022, in Bali, Indonesia. This is where the G20 heads of state and government will gather with the expectation of adopting an impactful declaration.