Indonesia's G20 Presidency 2022: What's In It?

JAKARTA - Indonesia will host and become the G20 Presidency in 2022. The main agenda is joint economic recovery in order to realize a stronger, more inclusive, and sustainable world economic governance. So what are the concrete advantages for Indonesia?

Next year's G20 theme is Recover Together Recover Stronger. Being chosen as the host, Indonesia has the opportunity to participate in determining the direction of the design of global economic recovery policies.

Not only that, but the meeting will also discuss climate issues, global taxation policies, and financial inclusion. Among the priority agendas on the financial track proposed by Indonesia will focus on handling the latest global issues such as exit policy.

"What will often be discussed here is when countries, especially the G20, which all carry out extraordinarily fiscal and monetary policies, will determine when to start carrying out exit policies. Namely reducing extraordinary macro policy interventions, which are definitely unsustainable, gradually and coordinated," Sri Mulyani was quoted as saying by Kompas TV.

Indonesia in G20

The formation of the Group of Twenty (G20) stems from a thought to resolve the global financial crisis, and the need for an international strengthening that comes from the commitment of countries with the largest economies of scale. This exclusive economic club is here to provide a global framework which is then infiltrated into various international institutions or economic cooperation mechanisms.

As explained by Sukma Sushanti in her journal on "Actualization of Indonesia in the G20: Opportunities or Trends" the implications of the formation of the G20 were even stronger in 2008. Especially when this forum experienced a transition in its level of meeting to become a meeting place for heads of state who sat together to address the world economy.

Future projections for the formation of the G20 are to anticipate the world economic crisis. This is because the main objective of this forum is to build international commitments that will provide a real role in providing global solutions for every economic problem. The essence of the common goal which is the vital foundation of this forum is the formation of collective action in addressing the problems of the world economy.

Many countries give hope to this exclusive economic community through the representation of active members in this group. The mandate has been attached to Indonesia since it was appointed as a permanent member of the G20.

Indonesian President Joko Widodo holds a bilateral meeting with European Council President Charles Michel, on the sidelines of the G20 Summit in La Nuvola, Rome, Italy, Sunday, October 31 (Photo: Antara)

The appointment of Indonesia as a permanent member of the G20 forum is based on several things, first, namely its role in initiating ASEAN. The experience provides the opportunity to be included in this exclusive economy club.

In addition, Indonesia's experience in overcoming the financial crisis in 1998 was considered quite good. And real participation from Indonesia in every world economic forum.

Meanwhile, Indonesia is also one of the countries in the region that has a large scale in world trade. If Indonesia can maximize its role well in the G20, then the achievements of the country's national interests can be properly accessed without ignoring moral demands regionally or globally. So what are the real benefits that Indonesia can get?

What's in it?

Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira explained that the moment of Indonesia's G20 Presidency needs to be optimized so that trade and investment cooperation can be more attractive. "So is the post-pandemic global policy planning, Indonesia should have prepared several breakthrough proposals," Bhima told VOI.

After the pandemic, said Bhima, there were indeed many countries that wanted to overhaul fiscal and monetary mechanisms. For example, regarding the impact of normalizing monetary policy in developed countries, do not let it cause a big turmoil like what happened in 2013.

"For example, regarding the impact of normalization of monetary policy in developed countries, do not let it cause a big shock like the 2013 taper tantrum. Indonesia can give tactical recommendations so that the normalization effect does not harm the economies of developing countries," explained Bhima.

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Antara)

Next, Bhima suggested that the stimulus was not expected to lead to a drastic cessation of social assistance. "Because there are many business sectors and communities that still need help."

Then in terms of concrete benefits, according to Bhima, the more impactful events are the "side" events. "In the G20 side events sometimes have a direct and concrete impact compared to the commitments in the main event at the G20," said Bhima.

Bhima gave an example of the 2018 Argentine Presidency. There was an interesting moment when US President Donald Trump and Chinese President Xi Jinping met over dinner. "They discussed delaying tariffs as the trade war progresses."

"If Indonesia can do the same thing, for example, large investment deals from G20 countries during side events. Then this is momentum," said Bhima.

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