Impact of G20 Presidency of Indonesia for National Economic Recovery

Dec 24, 2021

At a time when many countries are still recovering from the Covid-19 pandemic, Indonesia has won the trust of the G20 to hold the presidency in 2022. This trust is a form of appreciation and recognition from the world's major powers. Indonesia's G20 presidency is also expected to provide a boost to the country's economic recovery. The G20 (Group of Twenty) is a strategic multilateral forum founded in 1999 that connects the world's major developed and emerging economies. The G20 is made up of nineteen countries and one European Union institution. The G20 is also in a strategic position because it collectively represents 85 percent of the global economy, 80 percent of global investment, 75 percent of international trade, and 60 percent of the global population. Indonesia has been a member of the G20 since its inception. Due to the 1997-1998 crisis, Indonesia was in the midst of an economic recovery at the time. As a result, Indonesia has been designated as an emerging economy and a developing country due to its enormous potential and size in the Asian region, particularly Southeast Asia and the Islamic world. The appointment of Indonesia to the G20 Presidency in 2022 is also a new milestone, as Indonesia has been trusted to hold this position for the first time. Indonesia divided the discussion of issues at the G20 forum in 2022 into two tracks: the Sherpa Track and the Financial Track. Ministerial-level meetings, working groups, and engagement groups will be held to discuss issues addressed by the Sherpa Track and Financial Track. The Sherpa Track focuses on broader political issues such as geopolitics, anti-corruption, development, trade, energy, climate change, and gender equality. The focus of the issues discussed in the Financial Track is on economics and finance, such as fiscal, monetary, and real policies, infrastructure investment, financial regulation, financial inclusion, and international taxation. The momentum of Indonesia's G20 presidency is a golden opportunity to demonstrate Indonesia's international leadership. As a result, it is critical to maximize its use by orchestrating the discussion agenda at the G20 forum in order to provide positive added value in the recovery of Indonesia's economic activity. Indonesia juga akan menjadi salah satu fokus perhatian dunia dalam forum G20 kali ini. Hal tersebut bisa dimanfaatkan untuk meningkatkan branding dengan menunjukkan prestasi berupa berbagai kemajuan yang telah dicapai Indonesia. Dengan demikian, dapat menjadi titik awal pemulihan keyakinan pelaku ekonomi pascapandemi untuk mendorong komitmen investasi, baik dari dalam negeri maupun luar negeri. Indonesia will also be a focal point of the world's attention at the G20 summit. It can be used to improve branding by displaying accomplishments in the form of various advancements made by Indonesia. As a result, it can serve as a starting point for restoring confidence in post-pandemic economic actors in order to encourage investment commitments from both within and outside the country. A series of G20 forum meetings in Indonesia, on the other hand, could be used to introduce tourism and Indonesia's featured products to the international community in the hope that they will help drive the Indonesian economy. An inclusive economy and finance have emerged as top priorities for Indonesia's G20 presidency. A targeted group is one that has historically been underserved by financial services. The goal is to increase their productivity, capacity, and financial access. Of course, this necessitates a combination of fiscal policy, followed by other policies such as credit financing and the appropriate payment digitization system. The policies, it is hoped, will encourage an increase in financial transactions, bringing Indonesia one step closer to achieving sustainable economic development. The Indonesian government is also optimistic that the economic recovery will continue to accelerate in 2022, with the domestic economic sector, such as MSMEs, seen as one of the main drivers of the national economy's revival. Various efforts have also been made to raise the status of MSMEs, whether through supportive policies, assistance, or access to financing. The policy to encourage the expansion and acceptance of the QRIS payment method is one of the successful Indonesian government policies. This payment method serves as the first entry point for MSME players into the digital ecosystem. On November 1, 2021, the number of merchants using QRIS surpassed 12 million, exceeding the achievement target set by Bank Indonesia and financial industry participants. The G20 presidency is expected to be a new milestone in realizing Indonesia Maju's road map through sustainable economic development. The goal is to become a developed country by 2045, with annual economic growth of at least 6 percent. Ref: https://www.kemenkeu.go.id/single-page/draft-g20/#IndoDalamG20 https://www.setneg.go.id/baca/index/Presidensi_g20_pemulihan_ekonomi_dan_indonesia_maju https://www.bi.go.id/id/G20/Default.aspx https://www.kemenkeu.go.id/publikasi/berita/ini-manfaat-Presidensi-g20-bagi-indonesia/ https://g20.org/about-the-g20/