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Indonesia to Host G20 Summit Next Year: What Will be on the Agenda?

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Indonesia to Host G20 Summit Next Year: What Will be on the Agenda?
Southeast Asia’s largest nation has a chance to take the lead on issues of regional and global concern.
By Noto Suoneto
July 16, 2021

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At the 15th G20 Summit in Saudi Arabia in November, it was officially announced that Indonesia will assume the presidency of the grouping in 2022. In preparation, President Joko “Jokowi” Widodo has issued a Presidential Decree creating a national committee for organizing next year’s G20 Summit. The decree, issued in May 2021, outlines the involvement of various Indonesian ministries in preparing for the event, including the Ministry of Foreign Affairs, the Ministry of Finance, and the Coordinating Ministry for Economic Affairs.

Following Jokowi’s mandate, these three strategic ministries have all presented Indonesia’s vision for the G20 Summit. Firstly, Indonesia’s Foreign Minister Retno Marsudi recently identified some key issues to be discussed by the world’s 20 most advanced economies. Retno has emphasized the urgency of focusing on the global recovery from the COVID-19 pandemic and the importance of building stronger productivity, resilience, sustainability, partnership, and leadership among the G20 nations. She also said that Indonesia would work to strengthen diplomacy in the health sector, underlining the current wide COVID-19 vaccine gap between developed and developing countries.

Coordinating Minister for Economic Affairs Airlangga Hartarto added Indonesia’s interests in pursuing structural and financial reforms following the COVID-19 pandemic, including in such fields as digitalization, human resources development, and the empowerment of women and youth. He has also cited the importance of the G20 leading global efforts to mitigate the risks of future pandemics. Minister of Finance Sri Mulyani endorsed the question of financial reforms, stating that Indonesia will prepare a sustainable finance track agenda ahead of the summit. The discussion will cover the development of more robust infrastructure financing, financial regulation, and financial inclusion, as well as a green financing agenda.

While Indonesia’s domestic concerns have been spotlighted by the three ministers, the G20 is not only about the host’s own interests; it should address issues relevant to the group as a whole. So what are the main priorities for the G20 countries today?

Without a doubt, the COVID-19 pandemic will be at the top of the agenda of next year’s summit, as evidenced by Indonesia’s choice of “Recover Together, Recover Stronger” as the main theme of the meeting. While the grouping effectively handled the aftermath of the 2008 financial crisis, the challenges posed by the pandemic are both more severe and more multifaceted. Moreover, the pandemic has appeared amid a host of other concerning global challenges and trends, from rising populism and polarization to democratic regression and persistent economic inequalities. Many argue that the COVID-19 pandemic has accelerated these trends, while also revealing the significant gap between G20 governments in crafting coherent, rapid, and effective measures for battling the virus. The crisis has also disclosed the weaknesses in the current system of global governance, including forums like the G20.

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The G20 has also been criticized for its sluggish and inadequate pandemic response. Although the group has met a couple of times to discuss the COVID-19 crisis, the proposed cooperative actions were not compatible with individual governments’ incentives. Each government has prioritized its responsibility to protect its own citizens, not the group as a whole. In this sense, the G20 has not been immune from the growing nationalism that has confounded various forms of multilateral cooperation, prompting one scholar to describe the grouping as “missing in action” on COVID-19.

The predominance of the United States within the group may have also contributed to the G20’s failures. Under the leadership of Donald Trump for instance, the U.S. extended its rivalry with China to the group, thus disrupting collective efforts to handle the virus. Like many multi-level organs of international governance, the G20 is arguably not immune to the power gap between its members. The situation calls for substantive reform, and Indonesia may seek to make progress on this next year. While the leadership changes in the White House may provide a greater degree of G20 solidarity, much of the tension between Beijing and Washington remains.

DIPLOMAT BRIEF

Perhaps the most discussed criticism of the group is the fluidity of G20 Summit agenda. Each host country is allowed to bring something new to the G20 agenda every annual gathering and thus contributes to the grouping’s lack of a consistent and sustainable policy response. In this case, Indonesia needs to ensure that the final G20 Action Plan can help individual member states achieve their own goals.

Indonesia’s position will be mostly focused on representing the voices of the developing countries sitting outside the G20. Last year, for instance, Jokowi conveyed the importance of debt restructuring for low-income countries and the financial support for developing states to escape from the economic downturn caused by the pandemic. With these specific interests in mind, Indonesia should be able to encourage all G20 members to develop the political will necessary to revive the global economy. Indonesia must act as the guardian of G20 multilateralism, not merely speaking as a “developing country.” Consensus is a rarity in global governance today, and therefore, fairness and inclusiveness among members must be demonstrated as critical values.

In designing policy, the participation of all relevant stakeholders is necessary so that the policy outcomes rightfully address public demands in general, including from the youth. Youth is one of the groups of the world’s population that has been hit the hardest by the current crisis. The young generation is currently facing a more digitalized world with a high risk of unemployment and shifting job requirements and skills. In many G20 economies, youth represent a majority of the population and are hence a major driver of economic growth. Their insights will be invaluable if the G20 is to produce more appropriate and effective policies.

Indonesia’s agenda for the G20 Summit next year is aligned with last year’s OECD report on Policies for a Strong Recovery and a Sustainable, Inclusive and Resilient Future, which described the importance of developing and distributing health equipment and diagnostics – particularly COVID-19 vaccines – equally, promoting efficient and robust global value chains, building a more environmentally sustainable economy, and preventing sudden capital outflows and sovereign debt crises. However, in the process of negotiation, Indonesia is required to anticipate the “political” division among the G20 member states. Indonesia may conduct some pre-summit meetings with major countries like China, the U.S., the United Kingdom, and Japan to gain political support in advance. These consultations will be essential if Indonesia hopes to succeed in pursuing significant reform during the period of its presidency.

Founded in 1999, the G20 was initially a grouping designed to respond to the 1997 Asian Financial Crisis. Now that the COVID-19 pandemic has unleashed a host of social, economic, and political challenges on the world, the presence and contribution of the G20 are under the spotlight. Indonesia’s hosting of next year’s G20 Summit offers a chance for Jokowi’s administration to reaffirm the nation’s leadership, and help build consensus among the world’s largest economies toward the collective solution of global problems.

 

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The event will be held in Bali island, but until Today there is no specific place being mentioned by our official. Despite so, it would be Nusa Dua Bali as the best resort in Bali and particularly because of the resort is owned by a state owned company, PT ITDC, it makes it easy to be managed and secured by central government.

Nusa Dua Bali

 
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This will likely be a place for the meeting where hotels inside Nusa Dua will be the place for all leaders and their staff to stay.


Bali Nusa Dua Convention Center is the official main venue for Annual Meetings IMF World Bank Group 2018. BNDCC hosted of more than 300 meetings which includes high level meetings, official meetings, bilateral and small meetings such as G20 Finance Ministers and Central Bank Governors, High Level Parliamentarian, Commonwealth Finance Ministers and Central Bank Governors, G24 Deputies, Bretton Woods Committee, G7 Finance Ministers, Development Committee, International Monetary Fund Committee, Early Warning Exercise, and ASEAN Roundtable.

On Friday, 12 October the Plenary Session of the Annual Meetings held at BNDCC’s Nusa Dua Hall and attended by President of the Republic of Indonesia Joko Widodo, IMF Managing Director Christine Lagarde, President of World Bank Dr. Jim Yong Kim, 5 ASEAN Leaders, IMF and World Bank Group officials, and more than 4,000 delegates.

 

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It is previously planned to be held in Labuan Bajo, but since the Indonesia G 20 leadership is fasten into 2022 from 2023, so we dont have time to complete the facility in Labuan Bajo which is located in NTT province (Basically not far from Bali either).

Labuan Bajo will likely only host ASEAN Summit 2023

Labuan Bajo resort is also developed by a state owned company, PT ITDC who developed Nusa Dua Bali resort.



PT ITDC other on going project is Mandalika resort and Mandalika Moto GP circuit, NTB province (Lombok island). Lombok island is located next to Bali but populated by Muslims.


 
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Last physical meeting was in Tokyo 2019, in here look like Jokowi take advantage to talk to Ivanka Trump and get busted by her father later on...... :D

 
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President Joko Widodo attends the G20 Summit in Turkey in November 2015. (Photo courtesy of the Presidential Press Bureau)

Indonesia to Benefit Economically from G20 Presidency: Minister


BY :JAYANTY NADA SHOFA
SEPTEMBER 14, 2021

Jakarta. Coordinating Minister for Economic Affairs Airlangga Hartarto is confident that Indonesia can reap economic benefits from its G20 presidency in 2022.

“We are expecting an increase in domestic consumption by up to Rp 1.7 trillion [$119.2 million]. [The G20 presidency] will also add Rp 7.47 trillion to our GDP and involve about 33,000 workers in various sectors,” Airlangga told a press conference on Tuesday.

Airlangga hoped the G20 presidency would foster economic effects that is twice larger than that of the International Monetary Fund and World Bank 2018 meeting in Indonesia. The minister gave such estimates, considering that about 150 meetings and side events would take place throughout next year.

The G20 presidency will also serve as a momentum for Indonesia to showcase its success in structural reforms, with the 2020 Law on Job Creation and the establishment of a sovereign wealth fund.

“This will boost global investor’s confidence to accelerate economic recovery, and spur mutually beneficial global partnerships,” Airlangga said.

But the G20 presidency will not only bring economic benefits. According to Airlangga, Indonesia will take the opportunity to address Covid-19 vaccine production and distribution.

"We will continue to promote vaccines as global public goods. And also, its accessibility for the Indonesian people, as well as the low-income developing countries," Airlangga said.

Foreign Affairs Minister Retno Marsudi revealed promoting inclusivity would become among Indonesia's focuses during its G20 presidency.

"Indonesia will not only pay attention to the G20 members' interests, but also those of the developing countries and vulnerable communities," the diplomat told the same conference.

"This is indeed the DNA of Indonesia's foreign policies," she added.

Indonesia will assume the G20 presidency starting on December 1, 2021 to November 30, 2022. This marks the first time for Indonesia to hold the position.

 

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Indonesia reveals seven priorities in G20 Presidency's finance track
2 hours ago

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A screen capture of Minister of Finance, Sri Mulyani Indrawati, at a virtual press conference in Jakarta on Tuesday (September 14, 2021). (ANTARA/Astrid Faidlatul Habibah)

Jakarta (ANTARA) - Minister of Finance Sri Mulyani Indrawati revealed the seven priority agendas for the finance track for Indonesia's G20 Presidency in 2022 when speaking at a virtual press conference from Jakarta on Tuesday.

The first one, she explained, is coordination on global policies to recover the economy, including on the exit policy, or the gradual and coordinated lessening of extraordinary and unsustainable macro policy interventions by G20 member countries.

She further said that the exit policy will assist economic growth in each country, as well as globally, and at the same time, ensure that it becomes more sustainable.

"This is not an easy endeavor as every country has different conditions," she said.

The second agenda is regarding the COVID-19 impact on health and economic sectors, which has led to supply disruption and corporations struggling with their balance, she informed

"Discussions on productivity and economic recovery, as well as how policies are designed will be the second agenda in the finance track," she said.

The third one is the central bank digital currency (CBDC), she said.

Within the agenda, there will be discussions on the formulation of CBDC development, covering five main sectors, which include implications towards central bank functions, implications on monetary policy transmission, implication towards the financial system's stability, design and technology needs, and cross-border aspects, she added.

Sustainable finance is fourth in the agendas and covers the roles of the financial sector in supporting important agendas at the global level, including climate change and green finance facility that is aimed to create green and sustainable economic transformation, she said.

Related news: G20 - Indonesian minister presses for equality in global health system

"There will also be discussions on how digital infrastructure regulation can elevate leverage and mobilize private sector investment," she explained.

The fifth agenda is on cross border payment and will focus on taking advantage of the optimization of digitalization for boosting productivity, and at the same time, address risks and challenges that may emerge, she added.

This will also touch on the enhancement of payment systems, especially on cross-border payments to promote speedy, affordable, and transparent payments, she informed.

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

“This is a very important and relevant topic for Indonesia. This will be a priority in the G20 discussions," she stated.

The last agenda is the progress and implementation of the approval and development of global taxation principles, including the ones related to tax incentives, she said.

There is also digitizing taxation, tax avoidance practices, especially related to base erosion and profit shifting (BEPS), tax transparency and tax certainty, she noted.

"Indeed, this is one of the important priorities for Indonesia, which is currently carrying out tax reform," she explained.

 

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OK look like Labuan Bajo is still the first priority as a place to host the event, but around 100 preliminary meetings held since January 2021 until November 2022 could be done in either Jakarta or Bali. For Indonesian officials convenience, Jakarta should be the places for that preliminary talk and Labuan Bajo for the leaders meeting. Using Labuan Bajo as a place for the leaders meeting is intended to promote that tourist destination. Labuan Bajo is basically suit for big pocket tourist since the best thing about it is to do sailing with traditional ship around the areas for 2-3 days at minimum.


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The government continues to prepare Labuan Bajo to be the location of the G20 in 2022
Monday, 23 August 2021 19:18 WIB


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Minister of Tourism and Creative Economy Sandiaga Uno in a screenshot of the webinar "Exotic East Nusa Tenggara", on Monday (23/8/2021). ANTARA/Adimas Raditya.

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