For the first time since the G20 was founded in 1999, Indonesia has been appointed to assume the G20 Presidency starting from 1 December 2021 to 30 November 2022.
The Indonesian G20 Presidency adopts the theme ‘Recover Together, Recover Stronger’ to encourage joint efforts for world economic recovery. As the G20 Chair, the main commitments of Indonesia are inclusive, people-centered, environmentally friendly, and sustainable growth Indonesia expects that these efforts to be carried out in extraordinary ways, especially through a stronger global collaboration, and relentless innovation. The G20 must be the motor of ecosystem development that drives the collaboration and innovation.
Indonesia’s G20 Presidency sets three priority issues of Global Health Architecture, Digital Economy Transformation, and Energy Transition as comprehensive exit strategy to support global recovery. Indonesia will seize this momentum to establish a sustainable and inclusive development while exploring new avenues to shape a more adaptive G20 against future crisis.
Regarding health issue, Indonesia will increase the use of domestic vaccines that can create resilience to overcome if the next wave occurs. Therefore, red and white vaccines, national vaccines or other vaccines that can collaborate with pharmaceutical companies, both with state-owned enterprises and the private sector, will continue to be encouraged, so that apart from dealing with Covid-19, we can also save foreign exchange.
Related to digitization, Indonesia has already had a roadmap and encourages digitization infrastructure. In this case, Indonesia must be able to take advantage of the low earth orbit satellite communication system to reach communication services to remote and more affordable areas. This technology will be able to overcome the digital divide. On the other hand, financial inclusion through fintech and digitalization, especially creating a regulatory sandbox to protect public financial transactions.
On energy transition, Indonesia will make a prototype or pilot project, including financial support. The prototype is expected can be replicated and evaluated prior to the G20 summit at the end of 2022 in Bali.
Indonesia will also seek to coordinate global policies that contribute to a more balanced world governance, make the G20 more adaptive to crises, and fight for national interests in global forums.
There are at least three major benefits for Indonesia by becoming the G20 Presidency, namely economic benefits, social development, and politics. From the economic aspect, several direct benefits that are projected to be achieved by becoming the G20 Presidency (especially if the meeting is held physically) include increasing domestic consumption to Rp1.7 trillion, increasing national GDP to Rp7.4 trillion, and involving MSMEs and employment. around 33 thousand work in various sectors.
Overall, it is estimated that the economic benefits of G20 Presidency would be 1.5 – 2 times greater than the 2018 International Monetary Fund-World Bank Group Annual Meetings in Bali. There will be 150 events during the 2022 G20 Presidency, consisting of Working Groups, Engagement Groups, Deputies/Sherpa, Ministerial, and G20 Summits, as well as Side Events meetings. The meetings and events will activate and bring benefits to some sectors, especially accommodation, transportation, food and beverage, and tourism. The G20 Presidency will also strengthen Indonesia’s branding globally, which in the long run improve the world’s confidence on Indonesia.