On October 31, 2021 Indonesia officially became the presidency to the Group of Twenty (G20) since Italy (as the G20 Presidency of 2021) handed over the presidency to Indonesia in Rome, Italy. Indonesia will become the presidency of G20 for a full year in 2022, beginning on December 1, 2021.
The theme of the G20 presidency is "Recover Together, Recover Stronger." Indonesia, through this theme, invites the entire world to work together to achieve a stronger and more sustainable recovery. The more integrated the global economy, the more successful a country's response to the pandemic and economic recovery will be if it is not followed by similar success in other countries. Indonesia has the opportunity to encourage the world's collective efforts through the G20 forum.
Three big benefits for Indonesia by becoming the G20 Presidency, namely the economic benefits, social and political development. From an economic point of view, some direct benefits projected to be achieved by becoming the G20 Presidency (especially if meetings are carried out physically)
The G20's True Authentic Roles
- Handling the Global Financial Crisis of 2008
One of the G20's most notable achievements was its assistance in overcoming the 2008 global financial crisis. The G20 has also altered the face of global financial governance by launching large-scale coordinated fiscal and monetary stimulus packages. The G20 also encourages the IMF and other major development banks to increase their borrowing capacity. The G20 is credited with getting the world back on track for growth, as well as pushing for important financial reforms.
- Taxation Policy.
The G20 has prompted the OECD to advance the exchange of tax-related data. The G20 produced the precursor to the OECD's Base Erosion and Profit Shifting (BEPS) report in 2012, which was later finalized in 2015. Currently, 139 countries and jurisdictions are cooperating to combat tax evasion through BEPS.
- Contribution to the control of the global epidemic Covid-19.
Deferral of foreign debt payments for low-income countries, injection of Covid-19 handling of more than $5 trillion USD (Riyadh Declaration), reduction/abolition of import duties and taxes, reduced duties on vaccines, hand sanitizers, disinfectants, medical devices, and drugs are among G20 initiatives in dealing with the pandemic.
- Other Issues.
G20 also has important role on other international issues, including international trading, climate, and development. On 2016 a new collective principle which related to international investment. G20 also has support the political movement which had peaking on the Paris Agreement on Climate change on 2015. And the 2030 agenda for sustainable development.
The three major issues that will be addressed during Indonesia's G20 presidency are as follows
- Global Health Architecture
- Economic and digital transformation
- Energy Transition
The following are the pillars of Indonesia's G20 presidency in 2022:
- Strengthen the partnership environment.
- Enhance productivity.
- Increase the durability and reliability.
- Ensure long-term, inclusive growth.
- Strengthen the global collective leadership.
Finance Track Priority Agenda of Indonesian G20 Presidency in 2022:
- Exit Strategy to Support Recovery
Discussing how G20 will protect member countries on the road to economic recovery (particularly developing economies) from the spillover effect of exit policies in countries further along their economic recovery journey (typically advanced economies).
- Addressing the Scarring Effect to Secure Future Growth
Addressing the scarring effect of the crisis to increase productivity and growth in the long term, while paying due attention to the labour market, households, corporate sector and financial sector.
- Payment System in Digital Era
Standardising cross-border payments (CBP) as well as the General Principles for Developing CBDC.
- Sustainable Finance
Discussing climate risk and the risk of transitioning towards a low carbon economy as well as sustainable finance from a macroeconomic and financial stability perspective.
- Digital Financial Inclusion
Utilising open banking to increase productivity, as well as support the economy and financial inclusion for underserved communities, such as women, young people and MSMEs, including cross-border aspects.
- International Taxation
Discussing international taxation, particularly implementation of the joint OECD/G20 inclusive framework on tax planning strategies known as Base Erosion and Profit Sharing (BEPS).
The members of the G20 are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. Spain is also invited as a permanent guest.
The Summit meeting will be take place in Bali, by November 2022.
Source:
Presidensi G20 Indonesia 2022,
Translated and Posted By Derry Khudlori