STRATEGIC ASSESSMENT. Jakarta. Indonesia’s largest business lobby is urging unity among leading rich and developing nations to overcome global economic issues, warning of a need to stave off social unrest as the Russia-Ukraine war fuels food and energy crises across the world.
Indonesian Chamber of Commerce and Industry (Kadin Indonesia) Chair Arsjad Rasjid said the Ukraine and Russia situation may also lead to social unrest in many countries that would create economic disasters citing disruptions in the global supply chain that have sent fuel and food prices to alarming levels since Russia launched its invasion of Ukraine late February.
President Jokowi assured that the G20 Summit would be used as an event to strengthen global health architecture, as it must be done in an inclusive manner and adheres to the principles of solidarity and justice that benefit the world community. He said with the strengthening of global health architecture, the world can achieve resilience.
Finance Minister Sri Mulyani Indrawati, during an interview with the Jakarta Post on Friday, said the July meeting of G20 aims to pursue goals in health, energy transition, and tax as the prevailing geopolitical tensions work against Indonesia’s ability to advance the economic agenda of its G20 presidency.
“What is very clear is that first of all, without exception, all [G20] members support Indonesia’s agenda. Regardless of their own politics,” Sri Mulyani said. Indonesia has been facing challenges in hosting G20 meetings over the member countries’ policy stance on Russia’s invasion of Ukraine.
Sri Mulyani said that it was difficult for MSMEs to access financing, while women still had problems with guarantees, and financial institutions tended to look down on young people. Through digitalization, Indonesia calls on G20 member countries to involve and empower women, youth, and MSMEs to encourage economic recovery in their countries.
The G20’s diverse membership and spirit of cooperation, consensus and multilateralism are its key strengths. The spirit demonstrated in previous crises is relevant today as we face two additional crises that are far more complex: the global economic recovery from the pandemic and the economic consequences of the war in Ukraine.
The pandemic scarred the world deeply, dragging the global economy into recession in 2020-2022. Just as the world was showing very early signs of recovery, the war in Ukraine caused a humanitarian crisis and negatively impacted supply chains. Economic sanctions on Russia are also beginning to bite, with soaring commodity prices specifically related to fuel and food, driving inflation, and rising interest rates squeezing monetary liquidity.
Lower-income countries, which face limited fiscal space and high debt, are especially susceptible to these risks. The G20 was formed to address world economic crises and to prevent global depressions. It has been shown repeatedly that when the world works together, we are able to avoid the most catastrophic economic consequences. The G20 must not allow its members to break up.
That is why as president of the G20 this year, Indonesia has been doing its best to maintain the unity and full membership of the group, while at the same time understanding the need for some members to walkout on issues related to Ukraine. Indonesia’s presidency will advance the forward-looking and action-oriented G20 agenda and will continue to bridge the divergent interests between developed and developing countries.
The G20 should not act as if we are working on business as usual. It must adapt its agenda and deliverables to manage global economic risks, strengthen macroeconomic and financial stability and regulation, ensure long-term fiscal sustainability and safeguard against negative spillovers.
The G20 must maintain its integrity and effectiveness, in line with the principles on which it was established, and muster its collective weight to deal with the ongoing crisis. Then we can work to recover together and recover stronger.
The British Embassy in Indonesia said the United Kingdom looks forward to Indonesia’s successful G20 presidency. Deputy British Ambassador to Indonesia and Timor Leste Robb Fenn on Wednesday said the United Kingdom has no objective other than helping Indonesia succeed in its G20 presidency.
While Russia’s invasion of Ukraine has been a game-changer, he added, the United Kingdom hopes Indonesia will still manage to achieve all the wonderful things it has set out to achieve at the G20. However, a good next step would be to exclude Russia from the forum, Fenn went on to say. (Red/many sources)
