Complete Results Of India's G20 Summit: RI Encourages Financial Path Issue Agreement

Photo: Doc. Presidential Secretariat

JAKARTA The Indonesian government has expressed its commitment to pushing for mutual agreements between countries in facing current global challenges. This was conveyed by the Minister of Finance (Menkeu) Sri Mulyani while accompanying President Joko Widodo on the agenda of India's G20 Summit last weekend.

It was stated that the G20 leaders succeeded in generating the Leaders' Declaration, which included various issues from the Finance Line and the Sherpa Line.

"Some important agreements from the Financial Path reaffirm the commitment of G20 leaders to the need for well-calibrated monetary, fiscal, financial, and structural policies to encourage growth, reduce inequality, support sustainable development and financing climate change, as well as maintain macroeconomics and financial stability," the Ministry of Finance wrote in an official broadcast Monday, September 11.

In terms of financial and health collaboration, G20 leaders are committed to strengthening the global health architecture to deal with pandemic prevention, preparedness and response (Preparedness and Response / PPR) through increased collaboration between the Ministry of Finance and the Ministry of Health under the Joint Finance and Health Task Force (Joint Finance and Health Task Force / JFHTF), with Indonesia and Italy playing Co-Chairs.

The G20 leaders themselves are said to welcome the successful allocation of funding for the proposal for the first round by the Pandemic Fund, which was initiated and launched during the G20 Indonesia Presidency, and are looking forward to the second round of the end of 2023.

"We must also strengthen global solidarity of health issues through the mobilization of pandemic funds, we need to realize our $2 billion commitment," said President Joko Widodo.

It is noted that the financing gap of 10 trillion US dollars per year for the next five years is still there and will be even greater. This requires ongoing financial support to be ready for the next pandemic. The greater the funding available, the greater opportunities that Indonesia can get to access the Pandemic Fund in order to finance domestic health reforms.

In addition, in order to strengthen the Multilateral Development Banks (MDB), G20 leaders are calling for comprehensive efforts to develop their vision, incentive structure, operational approaches, and financial capacity to be better prepared to maximize their impact in overcoming various global challenges.

Specifically related to the World Bank, G20 leaders will collectively mobilize more space and concession funding to increase their capacity in supporting the poorest and low- and middle-income countries that need assistance in tackling global challenges.

"The larger MDBs funding capacity will benefit Indonesia in order to access more funding to support domestic financing needs," he said.

Kemudian, terkait pembiayaan perubahan iklim, para pemimpin G20 mengingatkan kembali perlunya realisasi dari komitmen yang dibuat oleh negara-negara maju terhadap tujuan mobilisasi bersama pendanaan iklim sebesar 100 miliar dolar per tahun pada 2020 hingga 2025, guna memenuhi kebutuhan negara-negara berkembang.

Meanwhile, Indonesia said that the collection of financing for transition funding had never been successful, and there was no world transition ecosystem. Indonesia itself has great interest in the formation of a world transition ecosystem in order to provide sufficient financing to support Indonesia in achieving the Nationally Determined Contribution (NDC) target and towards low-carbon development.

"Government and Private Synergy will be a game changer. Last year in Bali, Indonesia had initiated the G20 Bali Global Blended Finance Alliance. The Just Energy Transition Partnership (JETP) scheme must be expanded and enlarged," said the President.

In addition, international taxation is also one of the main agreements in this meeting. The G20 leaders reaffirmed their commitment to implement the Dua Pilar international tax package quickly, and welcomed the significant progress achieved in Pilar Satu, as well as the completion of the development of the Tax Subject Regulation (Subject to Tax Rule/STTR) on Pillar Dua.

"Equality can be realized with justice in global reform and transparency, including the issue of the international tax system by fulfilling the right to development for all, including developing countries," he added.

Furthermore, in this series of meetings, the Minister of Finance also accompanied the President of the Republic of Indonesia in several bilateral meetings with the Head of State members of the G20, including the Netherlands, the European Commission, and France.

The bilateral meeting with various countries mainly discussed strengthening cooperation with Indonesia, including related to energy transition, trade investment, and support for Indonesia's accession plan to become an OECD member.