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Indonesia's challenge in reviving G20 relevance toward global recovery
Indonesia has taken the G20 presidency at a time when the globe needs a unifying, inclusive and decisive voice that can take the forum from agenda to implementation.
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Officials inspect the main venue in Jakarta during preparations for the G20 meeting of finance ministers and central bank governors, which ran from 17 to 18 Feb. 2022. (AFP/Mast Irham)
Indonesia’s Group of 20 presidency is a milestone for the country in taking an active role in shaping the global agenda. As the global economy slowly recovers from the COVID-19 pandemic, Indonesia has recognized the importance of collective action and inclusive collaboration in selecting “Recover Together, Recover Stronger” as the theme of its presidency. It has also picked the three key issues of global health architecture, digital transformation and sustainable energy transition for deliberations and a final agreement that will affirm the G20’s commitment.
Thirteen years ago in 2008, the G20 moved beyond its previous role of economic crisis management and the global custodian of social welfare by addressing the global financial crisis. In this capacity, the 2021 G20 joint agreement called for action to recover from the COVID-19 crisis while also enabling sustainable and inclusive growth.
As the premier forum for international economic cooperation, G20 leaders reaffirmed their commitment to overcoming the global health and economic crisis stemming from the pandemic. They agreed on a shared vision to combat climate change and announced important steps toward achieving gender equality.
We have also advanced in our common efforts to ensure that the benefits of digitalization are shared broadly and contribute to reducing inequalities.
Since the global financial crisis, the relevance of the G20 has been measured by its results across a number of policy areas. A prominent example is the anti-protectionism pledge adopted during the global financial crisis, which was successful in averting trade wars and capital outflows in 2009. The forum also successfully coordinated large stimulus packages and regulated financial markets.
The G20 also helped to bring about the base erosion and profit shifting (BEPS) initiative to prevent declining tax bases, installed an information system for the agriculture market to reduce food price speculation, and helped to build a consensus on reforming international trade and investment policies.
Above all, the G20 has become the most visible forum for ushering rising powers such as Argentina, Brazil, China, India, Indonesia, South Africa and Saudi Arabia into the global economic governance framework.
