Airlangga: Optimistic, G20 will Result in Declaration

The G20 Summit will indeed take place. However, many are pessimistic that the declaration could be published. On the other hand, the Indonesian government is optimistic.

KOMPAS

Coordinating Economic Affairs Minister Airlangga Hartarto

JAKARTA, KOMPAS – The Group of Twenty (G20) summit will be held in less than a week and heated issues still revolve around geopolitical tensions, especially between the West and Russia, which is a member of the G20. But even so, Indonesia as the host remains optimistic that the multilateral forum will yield positive results for global prosperity.

Technically speaking, Coordinating Economic Affairs Minister Airlangga Hartarto is optimistic that a declaration from the G20 leaders will be born in Bali. In a special interview with Kompas on Tuesday (11/8/2022), in Jakarta, Airlangga said that parties are currently having editorial discussions to form the sentences and select vocabulary. Substantive matters on commitments from various sherpa and financial-track meetings, as well as working groups involving non-governmental organizations, have been agreed upon.

“There is already a text of the declaration of state leaders made up of 37 paragraphs. Five paragraphs are attributed to the financial track whereas the rest are for the sherpa track,” said Airlangga.

According to Airlangga, Indonesia emphasized during negotiations that the declaration must be inclusive. Geopolitical tensions should not overshadow the essence of the declaration.

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Hence, Indonesia encouraged the use of more moderate language, such as avoiding criticism of certain parties and placing more emphasis on accountability.

“This moderation is crucial so that the G20 is not tugged by geopolitical camps. The declaration must illustrate the neutrality of the Indo-Pacific and ensure that it is in favor of developing countries,” said Airlangga. Moreover, representatives from small island countries and the African Union will be present and their interests must also be taken into account.

“Thus, this declaration is important because it is a manifestation of the promise all members made to carry out the discussion points raised in the forum. The first paragraph is the opening. After that, the second paragraph and so on will immediately describe the various results that were agreed upon,” said Airlangga.

This declaration is important because it is a manifestation of the promise all members made to carry out the discussion points raised in the forum.

One of the results was the establishment of a financial intermediary fund (FIF) of US$1.4 billion. This fund serves as a solution for COVID-19 pandemic management as well as building a mitigation system for future pandemics and outbreaks. Funds are channeled through contributions from G20 members, developing countries outside the G20 as well as several philanthropists.

It was agreed that the funds will be managed by former Indonesian finance minister Chatib Basri of the 2013-2014 period and Rwandan Health Minister Daniel Ngamije. Additionally, there is also a reserve fund of US$72 billion via the International Monetary Fund (IMF). These funds will be set aside and only used in the event of a financial crisis due to global health issues.

KOMPAS/HENDRA A SETYAWAN

Coordinating Economic Affairs Minister Airlangga Hartarto (center) during a special interview with Kompas Daily at the office of the Coordinating Ministry for the Economy, Jakarta, Tuesday (8/11/2022). Interview regarding the implementation of the peak of the G20 event in Bali, which will take place next week.

Not in vain

These achievements, according to Airlangga, are clear evidence that the efforts made thus far have not been in vain. On the other hand, there is also support from G20 stakeholders.

“One of the reasons Indonesia is optimistic about this declaration is that the G7 gave a nod of approval, deeming the publication of this declaration important,” said Airlangga.

This growing optimism, Airlangga explained, dispelled recent doubts that the G20 summit would produce a joint communique. Various parties assumed that the most likely outcome is the publication of the chair’s summary, which would contain various opinions, including pros and cons that were brought up in the forum. Both the declaration and summary will emphasize the implementation of these results.

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Regarding this concern, Airlangga said, the G20 is the world’s highest economic forum and is very influential. This institution has been in existence since 1999 and when meetings between heads of state began in 2008, they tended to be dominated by developed countries. The G20 also includes the seven richest countries in the world (G7).

The Indonesian G20 presidency, from 1 December 2021 to 30 November 2022, marks the first leadership of an Asian and developing country. Thus, President Joko “Jokowi” Widodo promised that this time, the G20 would not only represent developing countries, but also the voices of poor countries.

Indonesia’s leadership also paved the way for another developing country, namely India, which will take over the presidency in 2023. Brazil will then assume the G20 presidency in 2024, while in 2025, it will most likely be assumed by South Africa.

President Joko “Jokowi” Widodo promised that this time, the G20 would not only represent developing countries, but also the voices of poor countries.

Currently, during Indonesia’s presidency, all discussions at the G20 forum emphasized various alternative solutions to build global-health architecture and an online economic system and to maintain geopolitical stability by ensuring that it is friendly to developing countries and that its results are feasible.

It should be noted that the sherpa track is managed by the Foreign Ministry and the Coordinating Economic Affairs Ministry. This track discusses issues of employment, online economy, anti-corruption, education, environment, tourism and industry. The sherpa track has held four meetings with representatives of all members and multilateral institutions in attendance.

The finance track is managed by both the Health Ministry and Agriculture Ministry and has held eight meetings. (DNE/AGE/LAS/FAJ/SUT/JOS)

This article was translated by Kesya Adhalia.