Back on November 15-16 Group of 20 presidencies (G20) was held in Bali. The Group of Twenty (G20) itself is a major forum for international economic cooperation which consists of countries with the largest economies in the world consisting of 19 countries and 1 European Union institution.
the formation of the G20 in 1999 arose as a result of the international community’s disappointment with the failure of the G7 in finding solutions to the global economic problems faced at that time. The prevailing view at that time was that it was important for middle-income countries and those with systemic economic influence to be involved in negotiations to find solutions to global economic problems. The forum then embraces developed and developing countries to jointly overcome the main crises that hit Asia, Russia, and Latin America.
The G20 represents more than 60% of the world’s population, 75% of global trade, and 80% of the world’s GDP. G20 members consist of South Africa, the United States, Saudi Arabia, Argentina, Australia, Brazil, India, Indonesia, the United Kingdom, Italy, Japan, Germany, Canada, Mexico, the Republic of Korea, Russia, France, China, Turkey, and the European Union.
Back refocusing on the G20 which will be held in Bali in November 2022, The world is again in a multidimensional crisis due to the COVID-19 pandemic. The G20 as a collection of the world’s major economies, which have political and economic power, has the capacity to encourage recovery. For this reason, as the G20 Presidency, Indonesia carries the spirit of recovery together with the theme “Recover Together, Recover Stronger”. This theme was raised by Indonesia, considering that the world is still under pressure due to the COVID-19 pandemic, requiring a joint and inclusive effort to find a way out or a solution for world recovery.
To achieve this target, the Indonesian Presidency focuses on three priority sectors which are considered to be the keys to a strong and sustainable recovery, namely:
(1) Strengthening the global health architecture
Reflecting on the ongoing pandemic, the global health architecture will be strengthened. Not only to deal with the current pandemic but also to prepare the world to have better responsiveness and capacity to face other health crises in the future.
(2) Digital transformation
Digital transformation is one of the main solutions for driving the economy during a pandemic and has become a new source of economic growth. For this reason, the Indonesian Presidency will focus on increasing digital skills and digital literacy to ensure that digital transformation is inclusive and enjoyed by all countries.
(3) Energy transition
In order to ensure a sustainable and green future and address climate change in a real way, the Indonesian Presidency encourages the energy transition towards new and renewable energy by prioritizing energy security, accessibility, and affordability.
Benefits of the G20 Presidency for Indonesia :
First, it is hoped that the G20 Presidency will have a direct impact on the economy, by increasing state foreign exchange earnings. More than 20 thousand international delegates are expected to attend the meeting which will be held in various regions in Indonesia.
Previous experience in the Presidency of Turkey, Argentina, China, and Japan showed a positive impact on the country. It was recorded that the number of visits by international delegations reached more than 13 thousand. It is also estimated that each G20 summit generates more than $100 million in revenue for the host country.
Second, in the political field, as Chair of the G20, Indonesia can encourage cooperation and initiate concrete results in the three priority sectors, which are strategic for recovery.
This is the momentum for Indonesia to gain world credibility or trust, in leading the global recovery. In diplomacy and foreign policy, credibility is a very valuable capital
Third, in the field of sustainable economic and social development. The G20 presidency is a momentum to show that ‘Indonesia is open for business’. There will be various showcases or events that showcase Indonesia’s development progress, and investment potential in Indonesia.
It is hoped that this will have the opportunity to create a multiplier effect for the regional economy because it contributes to the tourism, accommodation (hospitality), transportation, and creative economy sectors, as well as local MSMEs.
Indonesia has a very strategic position by being the only country that is a member of three important world forums namely the G20, APEC, and also ASEAN. By holding the G20 Presidency in 2022 and ASEAN Chair in 2023, Indonesia will increasingly play an important role in encouraging collaboration and synchronization of agendas between the three international and regional forums and can make a real contribution to realizing world peace and prosperity.