Yogyakarta, 24 May 2022 – The Minister of National Development Planning/Head of Bappenas Suharso Monoarfa highlighted the importance of mutual understanding and cooperation between all G20 member nations to ensure the success of their development goals. “I believe that each country has its own unique positions and diverse perspectives in the process, but I believe we share the same common goal. That is, to foster stronger recovery and to achieve Sustainable Development Goals,” Minister Suharso said at the first day of the 2nd Development Working Group (DWG) Meeting in Yogyakarta, Tuesday (24/5).
Organized by the Ministry of National Development Planning/Bappenas as part of Indonesia’s 2022 G20 Presidency, the 2nd DWG Meeting is held in two separate sessions between May 24 and May 25, inviting input from G20 member states. Two main priorities were discussed during the first day, including Priority 1 – Strengthening the Recovery and Resilience in Developing Countries, Least Developed Countries (LDC) and Small Island Developing States (SIDS) to Withstand Future Crises; and Priority 2 – Scaling up Private and Blended Finance. “We are now presented with unprecedented development challenges, which are amplified by the ongoing pandemic and the rising geopolitical tensions. It is only through a renewed multilateralism that we can pass this challenging period,” the Minister added.
The discussions that took place at the 2nd DWG Meeting are an important part in the preparation of the Zero Draft of the G20 Roadmap to Stronger Recovery and Resilience in Developing Countries, LDCs and SIDS, as well as the Zero Draft of the G20 Principles in Scaling Up Blended Finance in Developing Countries, LDCs, and SIDS. “Indonesia, particularly, has identified three focus areas, namely the Micro, Small, and Medium Enterprises (MSME) industry, adaptive social protection, as well as a green and blue economy through Low Carbon Development,” said the Ministry of National Development Planning’s Director of Multilateral Funding and Co-Chair of the G20 DWG Raden Siliwanti. On the second day of the 2nd DWG Meeting on 25 May, the priorities that are planned to be discussed are Priority 3 – Renewing Global Commitment to Multilateralism for Sustainable Development; and Priority 4 – Coordinating the Progress of Achieving the SDGs in the G20 and Updating G20 Development Commitments.
Yogyakarta, 23 May 2022 – As part of Indonesia’s G20 Presidency in 2022, the Ministry of National Development Planning/Bappenas holds the 2nd Development Working Group (DWG) Meeting in Yogyakarta between the 24th and 25th of May. The event is preceded by the 2nd DWG Side Event on 23 May, which was held in partnership with the Islamic Development Bank (IsDB) and the United Nations Development Programme (UNDP). The meeting discussed ways on how to increase the productivity and competitiveness of Micro, Small, and Medium-Scale Enterprises (MSMEs) and the informal sectors to help them recover from the impact of the Covid-19 pandemic.Indonesia is maintaining sustainable approaches in every development growth scheme, which is also crucial for ensuring the effectiveness of the development. “The Indonesian government has prioritized principles of sustainability in each of its economic development plans by implementing co-creation and inclusivity measures to ensure no one is left behind,” said the Ministry of National Development Planning/Bappenas’ Expert Staff to the Minister for Social Welfare and Poverty Reduction Vivi Yulaswati, Monday (23/5).
Meanwhile, the Director for Multilateral Funding at the Ministry of National Development Planning/Bappenas as Co-Chair of the G20 Development Working Group Raden Siliwanti opened the G20 DWG Side Event by highlighting the importance of strengthening Indonesia’s MSMEs for economic recovery. Siliwanti emphasized the MSME industry’s importance in Indonesia, which make up almost 99 percent of all the country’s business activity. “Strengthening MSMEs is one of the DWG’s priority issues, due to the fact that MSMEs have become the main drivers of developing nations’ economies, including ours. [Through this event] we aim to illustrate a lesson learned from the Covid-19 crisis on how responsive policy intervention can actively support MSMEs going forward,” Siliwanti said.
In order for MSMEs to develop and grow, factors such as supportive policies, government intervention, systemic reorganization, to digital transformation are important to consider. For the Ministry’s Director for Small and Medium Enterprises and Cooperatives Development Ahmad Dading Gunadi, even before the Covid-19 pandemic, Indonesia’s MSME sector were beset with various fundamental challenges, despite the fact that MSMEs make up a sizable chunk of the national business landscape. These challenges included the lack of an integrated MSME database by institutions and ministries at both the national and regional level. Other challenges include maximizing partnerships between MSMEs and large-scale enterprises, increasing export contribution, expanding access to financial services or institutions, and promoting further digital adoption.
“All of these problems the government has either addressed or will address going forward. We have a goal that within five years, beginning from 2021, all of these issues will be solved. And some already have. For one, the Ministry of Small and Medium Enterprises and Cooperations have distributed credit subsidies, tax relaxations, and credit restructuration for MSMEs affected by the Covid-19 pandemic in 2021,” Dading said. Another crucial strategy in the government’s efforts is the issuing of a regulation in 2021 that makes it compulsory for government institutions to procure their supplies and services strictly from local businesses, by at least 40 percent.
The 2nd DWG Side Event is divided into two sessions. Side Event 1: “Strengthening MSMEs Productivity, Competitiveness, and Resilience in Facing Future Shocks Post COVID-19 Pandemics in Developing Countries, LDCs and SIDS”, covering Session 1: Responsive Policy Interventions Supporting MSMEs During Pandemics: Lessons Learned from COVID-19 Crisis which was attended by Chief Editor UKMIndonesia.id – LPEM FEB UI Dewi Meisari, Director for Small and Medium Enterprises and Cooperatives Development Ahmad Dading Gunadi, Head of Secretariat Women Entrepreneurs Finance Initiative Wendy Teleki, Manager Global Programme on Business for Gender Equality of UNDP Diana Gutiérrez, dan Head of IsDB Center of Excellence Malaysia Mohamed Abida.
Session 2: Preparing MSMEs for the Digital Economy and solutions for transitioning MSMEs to adapt to and tap into Industry 4.0 hosted Chief Editor UKMIndonesia.id – LPEM FEB UI Dewi Meisari, Lecturer of Economics of University of West Indies Barbados Antonio Alleyne, Principal Secretary, Industries & Commerce and Information Technology (Government of Telangana, India) Jayesh Ranjan, Chief Risk and Sustainability Officer Amartha Fintech Aria Widyanto, Chief Division of Innovation and Digitalization at UNIDO Marco Kamiya. Both sessions were moderated by Diana Octary, Advisory Project Lead, ASYX Holdings Pte. Ltd. Side Event 2: “Scale-up Blended Finance and Private Finance to Reach the Last Mile” hosted Director PT SMI – SDG Indonesia One Faaris Pranawa, Special Adviser to the President on Finance and the Economy Nigeria Sarah Alade, Senior Counselor & Head of Financing for Sustainable Development Division of the OECD Development Co-operation Directorate Haje Schutte, SDG Finance Specialist, Finance Sector Hub UNDP Tim Strawson, Country Strategy and Market Integration Manager Islamic Development Bank Syed Husain Quadri, Chief of Product Officer Asian Venture Philanthropy Network Tristan Ace, and President United in Diversity Tantowi Yahya. The session, which concluded the day, was moderated by SDGs Indonesia’s Coordinator of Expert Team Yanuar Nugroho.
Yogyakarta, 17 May 2022 – The post-Covid-19 pandemic recovery has become a mutual agenda for G20 member countries. In Indonesia’s G20 Presidency of 2022, this theme has also been incorporated into the agenda of the Digital Economy Working Group discussions, including on digital connectivity.
“During the emergency phase of the Covid-19 pandemic, together we are stronger. G20 members are currently working to rebuild, ignite the spirit to recover better together,” said Minister of Communications and Informatics Johnny G. Plate in his Opening Remarks for the 2nd G20 DEWG Meeting 2022 which was organised in a hybrid format from Hotel Tentrem, Yogyakarta, Tuesday ( May 17).
The Minister hoped that the discussion about the Digital Ministerial Declaration Draft or Bali Package will result in one of the milestones and tangible results of the post-covid-19 recovery efforts.
“Today’s discussion is expected to demonstrate our shared commitment in navigating the post-Covid-19 economic recovery through digital transformation. An acceleration, as expected by the previous G20 Presidency,” he said.
Johnny believed that the discussions in this Second Session of the G20 DEWG meeting will produce appropriate recommendations to strengthen connectivity for post-Covid-19 recovery.
“Through exchanges of views on how digital technology is used in various industrial sectors we will come to a shared understanding of people-centred digital connectivity, where we are moving towards a more inclusive, empowering, and sustainable digital transformation,” he explained.
He encouraged exchange of views on various digital security practices that have been implemented so far, so that each country can experience a better digital transformation. Moreover, the Minister invited all to establish a collaboration for mutual learning.
“We will also seek to exchange views on existing digital security practices as a key factor to support business sustainability, enable business matchmaking within the G20 Digital Innovation Network, and demonstrate each country’s digital transformation milestones, as well as facilitate mutual learning and collaboration among G20 members, through the Digital Transformation Expo,” he said.
According to Johnny, through the discussions, elaborations, and exchanges of best practices we would be able to face the challenges of the dynamic digital economy and encourage the advancement of global digital transformation.
“I believe that this 2nd meeting will produce substantive results, which will contribute to the goal of overcoming various challenges related to the digital economy, as well as encouraging the peaceful, innovative, and cooperative use of digital technology to advance digital transformation globally,” he concluded.
In the opening of the Second Session of the DEWG G20, Minister Johnny was accompanied by all high-ranking officials within the Ministry of Communications and Informatics. Meanwhile, the session was chaired directly by the Ministry’s Secretary General who is also the Chair of DEWG, Mira Tayyiba, and the Senior Advisor to the Minister of Communications and Informatics for Digital Policy and Human Resources who is also the Alternate Chair of DEWG, Dedy Permadi. Delegates from 15 G20 member states attended the meeting in person in Yogyakarta. These delegates come from the United States, Argentina, Australia, Brazil, France, Germany, England, India, Italy, Japan, South Korea, Saudi Arabia, Turkey, and the European Union. Meanwhile, delegates from five countries attended the meeting virtually, including Canada, China, Mexico, South Africa, and Russia. Also present were invited delegates from Singapore and Cambodia as well as representatives of the International Telecommunications Union (ITU) and the Organization for Economic Co-operation and Development (OECD).
Yogyakarta, 17 May 2022 – The Second Session of the G20 Digital Economy Working Group (DEWG) will continue the discussion from the previous meeting. Communications and Informatics Minister, Johnny G. Plate, hopes that the delegations from the G20 member countries can exchange perspectives on the three priority issues of the DEWG. Communications and Informatics Minister emphasized the efforts to overcome the digital gap by building digital connectivity or telecommunications infrastructure.
“DEWG’s three priority issues are Connectivity and Post Covid-19 Recovery, Digital Skills and Digital Literacy, and Cross Border Data Flow, and Data Free Flow with Trust,” he explained at the Opening Remarks of the 2nd DEWG Meeting at Hotel Tentrem, Yogyakarta, Tuesday, May 17.
Communications and Informatics Minister emphasized that the discussion focused on inclusiveness, empowerment, and sustainability in strengthening the global position to recover from the Covid-19 pandemic. “A discussion that will not only help us to recover together but also to recover stronger,” he said.
Minister Johnny stated that discussions on post-Covid-19 recovery facilitated through digital technology were on the main agenda. “I believe we have all witnessed the important role of ICT in helping people cope with the Covid-19 pandemic impact,” he said.
Overcoming the Digital Gap
On this occasion, the Communications and Informatics Minister re-emphasized the digital gap still present in the world’s population. Data from the International Telecommunication Union (ITU) stated that in 2021, 2.9 billion people never used the internet. According to World Bank data, around 94 million adults in Indonesia in 2019 could not access the internet on mobile devices.
“The digital gap is still a challenge. Even fewer people have access to fixed broadband internet. Connectivity issues like this require us at the Communications and Informatics Ministry to work harder in providing a stable and strong digital infrastructure,” he explained.
One of the efforts made by the government of the Republic of Indonesia is building telecommunications infrastructure on a large scale. “In the form of fiber optic cables on land and under the sea, several high-throughput satellites, and thousands of Base Transceiver Station,” he explained.
According to Minister Johnny, this condition was one of the reasons why the G20 DEWG Forum discussed efforts to bridge the digital gap through more solid collaboration to encourage the massive construction of digital infrastructure between G20 countries and the rest of the world.
“Recognizing this background, access to digital connectivity remains an important task. This is why the Digital Economy Working Group seeks to promote the massive construction of digital infrastructure between G20 countries and the rest of the world,” he explained.
The communications and Informatics Minister believes that the G20 DEWG Forum will be able to promote priority initiatives to encourage more advanced and efficient technology and provide funds for digital infrastructure development. “As we continue this discussion, we must pay attention to implementing an inclusive and secure digital connectivity infrastructure for our environment on terrestrial and in space,” he said.
According to Minister Johnny, the discussion on connectivity has become increasingly relevant following the global economic turmoil that affected food and commodity supplies and energy availability, causing the inflation rate to soar.
“It affects the purchasing power of the global community and the job market. Nevertheless, digital technology optimization raises hope because it allows us to navigate the digital economic landscape amid a crisis,” he said.
At the opening of the Second Session of the DEWG G20, Minister Johnny was accompanied by all high-ranking officials within the Ministry of Communication and Informatics. Meanwhile, the session was chaired directly by the Secretary-General of the Ministry of Communications and Informatics and Chair of DEWG Mira Tayyiba. Also, the Special Staff of Communication and Informatics Minister’s Expert Staff for Digital Policy and Human Resources and Alternate Chair of DEWG Dedy Permadi. At the second session, 15 delegates from the G20 countries were present in Yogyakarta. They were from the United States, Argentina, Australia, Brazil, France, Germany, England, India, Italy, Japan, South Korea, Saudi Arabia, Turkey, and the European Union. Meanwhile, delegates from five countries attended online, including Canada, China, Mexico, South Africa, and Russia. Invited delegates from Singapore and Cambodia, representatives of the International Telecommunications Union (ITU), and the Organization for Economic Co-operation and Development (OECD) were also present.
Yogyakarta, 17 May 2022 – Minister of Communications and Informatics (MCI) Johnny G. Plate warmly welcomed delegates of G20 Member States who were present at the Second Session of the Digital Economy Working Group (2nd DEWG) Meeting. When starting the session, Johnny greeted the member states representatives with a greeting in Javanese language, the spoken language of the people of Central and East Java of Indonesia, also introduced one of the philosophies in the Javanese culture.
“Sugeng rawuh Ing Ngayogyakarta. Welcome to Yogyakarta. I am very pleased to welcome you all to the second Digital Economy Working Group meeting in Yogyakarta, Indonesia,” the Minister addressed the floor in his Opening Remarks for the 2nd DEWG Meeting from Hotel Tentrem in Yogyakarta, Tuesday (May 17). The meeting was held in a hybrid method.
The Minister explained that Yogyakarta is a well-known sultanate city on Indonesia’s island of Java, therefore he hoped that this Second Session of the G20 DEWG meeting would provide a memorable experience for the state guests.
“I hope that all delegates are in excellent health condition and in your best of spirits to participate in this forum, because our meeting today is special, not only because it is held in one of the most enchanting cities in Indonesia, but also for the large number of physical presence of G20 delegates,” he stated.
Johnny also expressed his appreciation and gratitude to all G20 member delegates who were present in person. “We also thank the commitment of G20 Members who have joined us virtually, despite the different ideas and time zones,” he continued.
The Minister also introduced one of the prevailing philosophies of Javanese culture, Memayu Hayuning Bawono, which literally translates to beautifying the world. According to him, through this philosophy, every human being is entrusted to add the beauty to the already beautiful world.
“It is as how we say it in Javanese, Memeyu Hayuning Bawono. With this philosophy, I hope that we can work hand in hand to make the world a better place, especially through digital technology,” he explained.
He hoped that the Second Session of the G20 DEWG can produce the best agreement and that all delegates will have pleasant memories.
“I wish the best for this Second Session of the DEWG meeting. I hope you have a pleasant memory and stay in this beautiful historical and cultural city of Yogyakarta,” he said.
In the opening of the Second Session of the DEWG G20, Minister Johnny was accompanied by all high-ranking officials within the Ministry of Communications and Informatics. Meanwhile, the session was chaired directly by the Ministry’s Secretary General who is also the Chair of DEWG, Mira Tayyiba, and the Senior Advisor to the Minister of Communications and Informatics for Digital Policy and Human Resources who is also the Alternate Chair of DEWG, Dedy Permadi.
Opening his remarks, Minister of Communications and Informatics, Johnny G. Plate, greeted the 15 G20 delegates who is attending the meeting in person in Yogyakarta. These delegates come from the United States, Argentina, Australia, Brazil, France, Germany, England, India, Italy, Japan, South Korea, Saudi Arabia, Turkey, and the European Union. Meanwhile, delegates from five countries attended the meeting online, including Canada, China, Mexico, South Africa, and Russia. Also present were invited delegates from Singapore and Cambodia as well as representatives of the International Telecommunications Union (ITU) and the Organization for Economic Co-operation and Development (OECD).
Yogyakarta, 17 May 2022 – G20 EMPOWER Indonesian Presidency holds 2nd Plenary Meeting in Yogyakarta on May 17-19, 2022. The main agenda of this meeting is to discuss the urgency of the role of women in MSMEs (Micro, Small and Medium Enterprises) as drivers of economic growth. Some of the crucial issues that will be discussed include limited access to financial facilities for women MSME players, low digital literacy and connectivity to the internet, as well as vulnerability of women MSMEs to the impacts of pandemic and crisis.
Chair of G20 EMPOWER who is also Director & Chief Strategic Transformation & IT Officer of XL Axiata, Yessie D. Yosetya said that focus of this meeting is in line with the big theme of the Indonesia’s G20 Presidency 2022 “Recover Together, Recover Stronger”
“The main agenda of the 2nd EMPOWER meeting is to discuss the urgency of the role of women in MSMEs as drivers of economic growth. The government and private businesses need to encourage further implementation of policies and practices to support women-led MSMEs in facing all the challenges that exist,” said Yessie.
Meanwhile, Co-Chair of G20 EMPOWER who is also COO of PT. Infinite Berkah Energi & WKU XII and the Person in Charge of Research, Development, and Employment of IWAPI, Rina Prihatiningsih, stated that the results of the 2nd G20 EMPOWER meeting along with the results of the 1st and the 3rd meeting will be the first part of the communique for the G20 EMPOWER Indonesian Presidency.
“The meeting in Yogyakarta is expected to generate several results, among others, the first draft of recommendations for actions that must be taken by the private sector to support the growth of women’s MSMEs. Second, the design of support expected from the government or other stakeholders to accelerate the growth of women’s MSMEs,” said Rina.
During the 2nd G20 EMPOWER meeting series, there is also a meeting of women leaders from private and public sectors. According to the Assistant Deputy for Increasing Participation of Professional Institutions and the Business World of the Ministry of Women’s Empowerment and Child Protection (KPPPA), Eko Novi Ariyanti, these female leaders will share experiences with each other in realizing gender equality in the workplace.
“Since 2020, the Indonesian government has synergized with 26 advocates, namely CEOs or senior leaders at the company level or association leaders who play the role in decision making and can promote gender equality in their workplace. They are the main figures who can promote their actions that have been carried out at the G20 EMPOWER meeting. In 2022, the government gathers support from 34 new advocates to promote the importance of gender equality in the private and public sectors. G20 EMPOWER is an important platform for advocates to share experiences and good practices,” said Eko Novi.
The 2nd G20 EMPOWER meeting is expected to provide added value outside the various recommendations given. First, it opens the insight of various groups, especially the government and the private sector, about the importance of the role and leadership of women in MSMEs. Second, to identify the support needed from the government to realize the commitments and action plans from the private sector. Third, the need to conduct ideation with G20 EMPOWER advocates regarding forms and action plans that can be carried out by the private sector regarding the growth of MSMEs led by women.
Samarinda, 14 May 2022 – East Kalimantan Province to host Pre-Summit of Youth 20 (Y 20) Indonesia, the official youth engagement group for the G20 (Group of 20). As part of the G20 Presidency, Y20 focuses on issues that matter in the future from youth perspective. As the output of the Y20 forum, the policy recommendations formulated by youth delegates from G20 countries will later be discussed in the official forum of G20 heads of state. In particular, the issue of sustainable and liveable planet is a big theme for the Pre-Summit of Y20 Indonesia in East Kalimantan which will take place on May 21-22, 2022.
“The Provincial Government of East Kalimantan welcomes the implementation of the Pre-Summit Y20 Indonesia 2022. The issue of sustainable and Liveable planet as the theme of the event is our moral responsibility as one of provinces that has the largest tropical rain forest in Indonesia,” explained the Governor of East Kalimantan.
The appointment of Balikpapan as the host city for the Y20 Pre-Summit is not without reason. In 2021, Balikpapan City received an award as a sustainable city in the environmental field at the Southeast Asian level. In addition, in the planning for the development of the New Capital City of Nusantara (IKN), Balikpapan will become supporting city for the IKN.
In line with the G20 agenda, environmental issues and planet earth will always be relevant to young people. This is because young people will continue to live on the planet (earth) for a longer period of time. “On the priority issue of Y20 Indonesia, we continue the legacy issue to think more about real action in solving the earth problem, by raising 2 sub-priorities, namely the preservation of natural resources and sustainable consumption and production through a circular economy,” said Mujab, Head of Program, Logistics, and Delegation Relations of Y20 Indonesia 2022.
The implementation of the Y20 Pre-Summit in Balikpapan City, East Kalimantan, will be attended by delegates and observers from Japan, South Korea, Southeast Asian countries, as well as representatives from several embassies of foreign countries in Indonesia. In addition, a number of speakers will also present to add perspective to the talk show. Expert such as Herlina Hartanto from the Nusantara Nature Conservation Foundation and Kevin Lunzalu (Kenyan Youth Biodiversity Network) will help delegates to understand how youth can play a role in solving environmental problems and our planet.
Aie Natasha, Co-Chair of Indonesian Youth Diplomacy East Kalimantan, said that the Y20 Pre-Summit will be an opportunity for young people in Kalimantan to discuss issues of sustainable and liveable planet. “Through the Town Hall Meeting, a hundred young people from Kalimantan will participate in discussions and convey ideas and aspirations related to the issue of sustainable and liveable planet. This aspiration will be brought up by the official Indonesian delegation in the official Y20 forum,” added Aie.
East Kalimantan Province was selected as the host for the Pre-Summit of Y20 Indonesia 2022. East Kalimantan Province is expected to become the representative of the youth of Kalimantan island. Y20 Indonesia seeks to reach youth evenly in all parts of Indonesia so that all youth in Indonesia can feel the momentum of the G20. Y20 Indonesia 2022 will hold pre-summit events in 4 (four) cities in Indonesia, namely Palembang in March, Lombok in April, Balikpapan in May, and Manokwari in June. The highlight of this activity is the implementation of the Y20 2022 Summit which will be held in July in Jakarta and Bandung.
Labuan Bajo, 11 May 2022 – The G20 delegates attending “The 1st Tourism Working Group 2022” online agree that the “Bali Guidelines” will contribute to global economic recovery by focusing on the tourism and creative economy sectors, as well as being able to create employment opportunities.
The preparation of the “Bali Guidelines” itself is one of the outcome documents of the Tourism Working Group.
“Over the past two days, we have gathered to figure out how to promote tourism recovery and make tourism more inclusive and resilient through the “Bali Guidelines” and its five lines of action,” according to the Chair of Tourism Working Group, Frans Teguh, at Sudamala Resort, Labuan Bajo, East Nusa Tenggara (NTT), Wednesday (11/5/2022) evening.
The G20 member countries had delivered their input and best practices in dealing with issues in the Bali Guidelines, to be later discussed again in the 2nd Tourism Working Group Meeting and jointly agreed upon at the Tourism Ministerial Meeting.
“I hope that I can welcome the G20 delegates in person in Bali on September 23, 2022, at the 2nd Tourism Working Group, which will be followed by the Tourism Ministerial Meeting on September 26, 2022, and commemoration of World Tourism Day on September 27, 2022,” he added.
The delegates strongly supported the Bali Guidelines that center on local people’s welfare and creative economy actors. “We will ensure that tourism can create more and better employment opportunities. Including expanding education, technical and vocational training opportunities, and changing our training in the field of tourism,” Frans continued.
The G20 delegates, guest countries, and the international organizations also appreciated and responded positively to “The 1st Tourism Working Group”.
“On behalf of the Indonesian Presidency team, I would like to thank you and give sincere appreciation to all of the delegates from the G20 member countries and international organizations for your virtual attendance and significant contribution during this meeting,” he said.
On that occasion, the G20 delegates delivered their opinion about the five lines of action that were the main focus of the “The 1st Tourism Working Group” forum.
Among them, issues on human capital related to employment, skills, entrepreneurship, and education. The G20 delegates agree to improve sustainable re-skilling and up-skilling training.
The focus of the discussion on the second line of action, which covers innovation, digitalization, and the creative economy, is that the delegates will strengthen digitalization in the tourism and creative economy sector.
The third line of action is women and youth empowerment. The focus of the G20 delegates on this issue is better gender equality in terms of compensation and representation of women’s leadership roles. Also, to emphasize the importance of training programs to support young entrepreneurs in the tourism sector.
The fourth line of action is climate action, biodiversity conservation, and circular economy. The G20 delegates are committed to making global sustainable tourism.
Lastly, the fifth line of action is policy, governance, and investment frameworks. The G20 delegates emphasize the significance of collaboration to ensure that investment in tourism is an inclusive investment that benefits society.
“We have taken notes of all the points in this forum. The input and intervention of the panelists are beneficial in improving the Bali Guidelines. After this, we will share the conclusion with all delegates,” Frans explained.
On that occasion, Frans Teguh also invited the delegates to various G20 side events, namely the Asian Venture Philanthropy Network Conference on June 21-24, 2022, in Bali; the International Wellness Tourism Conference and Festival on August 5-7, 2022, in Solo; and the World Conference on Creative Economy on October 5-7, 2022, in Bali.
Bali, 11 May 2022 – Financial inclusion is one of the main focus of Indonesia’s G20 Presidency. To accelerate global financial inclusion, the Ministry of Finance and Bank Indonesia conducted an international seminar entitled “Digital Transformation for Financial Inclusion of Women, Youth, and MSMEs to Promote Inclusive Growth” which was held as a hybrid event in Bali, Indonesia as one of the side events of the 2nd Global Partnership for Financial Inclusion (GPFI) Plenary Meeting under the G20 Indonesia Presidency, this seminar aims to promote stakeholder discussions regarding policy options, programs, as well as financial products and services to accelerate financial inclusion for women, youth, micro and small-medium enterprises (MSMEs), and recipients of social assistance through technological developments and other innovative approaches, which are evidently relevant and important to recover from the COVID-19 pandemic.
According to Global Findex 2017, 69% of adults worldwide owns an account in a financial institution, an increase from 62% in 2014. Nonetheless, there are still 30% of the global population or approximately 1.7 billion people who still lack access to financial products and services where the majority are women, youth, and MSMEs. The COVID-19 pandemic had an impact by widening economic gap, especially to these vulnerable groups.
Therefore, MSMEs play an important role in absorbing labor, investment, and economic development. In Indonesia, MSMEs have a significant contribution to the economy by providing 97% of employment, generating more than 60% of GDP, and more than 60% of investment. Unfortunately, the development of MSMEs still faces several challenges, including access to financing. There are still gaps in access to financing for MSMEs, for example, the portion of MSME loans to total bank credit has been relatively stagnant at around 18% since 2014, far below some peer countries which reached around 30% to 80%. The current pandemic has impacted MSMEs by increasing its vulnerability, especially those managed by women due to the loss of income and with limited access to finance.
Meanwhile, women also play an important role in economic development. “We acknowledge that providing women’s access to formal financial services will not only secure their family well-being through better management of their finance and savings for basic needs, such as health and education, while also empowering themselves in business activities such as MSMEs”, said the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati during her opening remarks. A study from McKinsey Global Institute shows that $12 trillion or 11% of global GDP could be added to global GDP by 2025 by advancing women’s equality. Furthermore, women who are involved in the economy and labor market, have the potential to contribute USD28 trillion or 26% of world GDP by 2025. However, women often has more barriers to access financial services as they do not have official identification
documents or assets in their name, so they do not possess a bankable guarantee. In addition, many women do not have adequate knowledge on formal financial services, as well as management skills.
On the other hand, youth – who make up 16% of the global population – are essential to the country’s future as they will soon enter the work force and contribute to the economy. However, many of them are financially excluded due to a lack of official identity documents or requiring the approval of a legal guardian to open a bank account, or even stereotypes that associate them with higher risk due to irregular incomes and small deposits. As a result, they are often overlooked as potential customers and there are no adequate or accessible financial products to meet their specific needs.
In the midst of challenges during the pandemic situation, the rise of commodity prices, and the global financial recovery that is still uncertain and disrupted due to the geopolitical situation, the transformation towards digital technology needs to continue to ensure that people, especially the most vulnerable and underserved groups, can continue to work in a sustainable manner, which is very productive and helps boost economic recovery efforts.
For MSMEs, the use of digitalization through financial technology (fintech) needs to be encouraged. Fintech supports MSMEs by helping them find more efficient financing options and supporting government efforts to reduce the spread of the virus and maintain safety. Fintech enables people to transact, buy, sell and consume, with minimal physical contact, using QR code payments.
For women, the main challenge in digitalization process comes from low digital literacy skills and low financial literacy, especially those who work in the informal sector. “Without financial literacy and education, it will be difficult for women to open a bank account and obtain positive benefits for them. Thus, it is important to increase digital and financial literacy for women to help them gain access to a digital-based financial system,” added the Minister. Women entrepreneurs with a good level of financial literacy can manage their personal or household finances better and reap the benefits of financial products to grow their business and build a financially secure future according to their needs.
Meanwhile, for youth, it is necessary to encourage this group to increase access to formal financial services that will enable them to invest in their education to improve their skills and professional perspective in the future. Access to formal financial services also allows young people to gain autonomy in society and actively become socio-economic actors in their country. In addition, accessing financial services and products provides opportunities for them to build entrepreneurial initiatives and contribute to job creation.
In addition to encouraging the use of fintech, supervision of the digital financial services sector is also needed to protect consumers. Many financial services offer access to finance but then it becomes a problem for many people who borrow money with excessive and high interest rates (online loans) so that many people cannot afford to pay it back. “Technology is changing the financial system. Therefore, we as policy makers need to ensure that this change is safe and inclusive and that no one is left behind,” continued the Minister of Finance.
This seminar was attended by various speakers from countries and international organizations who shared their experiences and expertise in digital financial inclusion. “I believe this event will surely be beneficial for all of us and our strategy in achieving the target of financial inclusion also in promoting access to responsible financial services to the most vulnerable and undeserved group. I do hope that the discussion will not only end here, but we
can continue in other events, as well as in our respective countries and institutions,” concluded the Minister of Finance.
During the seminar, the Government Investment Center (PIP) of Indonesia shared various experiences in promoting financial inclusion in the non-bankable community, especially for women. Starting in 2007, the Government has been having financing program for MSMEs called People’s Business Credit or KUR, which is channeled mainly by banks. Based on data from the Credit Program Information System (SIKP) in 2016, the average loan size for Micro KUR is around Rp. 14 million, while many Ultra Micro businesses require less than Rp. 10 million in financing.
Furthermore, the Ministry of Finance launched the UMi Program in 2017, which is managed by a Public Service Agency called the Government Investment Center. The program is designed to provide micro-loans that can be easily and quickly accessed through Non-Bank Financial Institutions. This program is expected to be a solution for micro-enterprises, including women, youth, and micro-start-ups, to obtain financial support so that they can be involved in economic activities of the society.
From 2017 to the end of 2021, the UMi Program has reached more than 5 million Ultra Micro businesses with a loan value of more than IDR 18 trillion or more than 1.2 billion USD. Through 55 non-bank partners, UMi has reached 508 out of 514 districts and cities throughout Indonesia. Data shows that 95% of UMi recipients are women, 91% take UMi micro loans under IDR 5 million rupiah, and 96% of the business sector is the small retail sector.
Another interesting fact from the 5-year data is that there is an increase in the number of younger debtors. The proportion of debtors under the age of 30 has increased from only 8% in 2017 to 18% in 2021. For 2022, PIP is targeted to add 2 million new debtors, which is expected to increase financial inclusion in the context of national economic recovery.
Labuan Bajo, 10 May 2022 – The Minister of Tourism and Creative Economy/Head of Tourism and Creative Economy Agency (Menparekraf), Sandiaga Salahuddin Uno, opens the 1st Tourism Working Group online on Tuesday (10/5/2022). He is optimistic that the tourism and creative economy sector is able to recover the global economy.
The presence of the 1st TWG as one of the working groups of the Indonesian Presidency at the 2022 G20 Summits, is a forum to exchange ideas, experiences, to best practices carried out by the G20 countries as well as guest countries and international institutions.
Menparekraf Sandiaga explained that tourism is the third-largest export sector in the global economy. Many countries, especially developing countries, depend on tourism as 20 percent of their GDP (Gross Domestic Product) comes from the tourism sector.
“Global economic recovery is inseparable from the recovery in the tourism sector. And of course, regardless of its concrete economic benefits, tourism functions as a platform to connect and bridge the community, create friendship and connection making our life better,” according to Menparekraf Sandiga Uno.
Menparekraf explained that the number of global tourists in 2020 decreased by one billion from the previous year or declined around 74 percent.
Meanwhile, at the national level, the impact of the pandemic on the tourism and creative economy sector is also tremendous. There is a significant decrease in foreign tourist arrivals by 75 percent and 30 percent for domestic tourists.
As a result, the community livelihood was disturbed, as there are 34 million Indonesian people who depend on their jobs in the tourism and creative economy sector.
“Therefore, this tourism meeting will discuss solutions to recover 80 percent of the global economy with the participation of the G20 countries in preparing a joint agreement to recover global tourism,” he added.
“We can meet the future challenges by, first, carrying out a multi-stakeholder approach towards sustainable tourism development. Second, strengthening the role of the tourism community as the agents of change. And lastly, designing a method to ensure a safe tourists movement during the pandemic,” he continued.
To realize this matter, the G20 countries were involved in preparing the G20 Bali Guidelines, which will become one of the outcome documents of the Tourism Working Group (TWG). The MOTCE has sent the draft of the guidelines to the G20 countries in the form of a survey.
In the survey, each member of the G20 countries was asked to provide best practices from the five lines of action used as the basis for preparing the draft guidelines as each country has a different approach to dealing with the COVID-19 pandemic situation. Thus, the solutions and policies from these countries become the basis for preparing the draft guidelines.
These five lines of action include human capital related to employment, skills, entrepreneurship, and education, how tourism HR are able see market needs and wants, create new employments, be able to bring added value from their products and services.
Second, innovation, digitization, and the creative economy. Focus on how the community is able to be more innovative, creative, and adaptive in entering the digital economy ecosystem order, so that creative economy actors can reach a wider market.
Third, women and youth empowerment. Menparekraf conveyed those women and young workers in tourism sector were among the most affected by the pandemic. Therefore, they needed more well-targeted support.
“We need to find out how we can better empower our women and young employees in the tourism sector, how we are against gender discrimination, and to encourage more entrepreneurial drive among women and youth in tourism,” Menparekraf explained.
Fourth, climate action, biodiversity conservations, and circular economy, in which, the use of energy, land, water, and food resources in the tourism sector can reduce carbon emissions.
And lastly, the policy framework, governance, and investment, with a focus on making policies and steps more holistic to support the four pillars of the lines of action.
“In this case, we need to discuss how we can improve stakeholders’ coordination between relevant ministries and institutions in strengthening synergies between public and private actors to support more sustainable investments in tourism,” Menparekraf said.
Menparekraf expected that this tourism meeting would result in strategic policies for global tourism, namely the “Bali Guidelines on Strengthening Communities and MSMEs as tourism transformation agents – a People-Centered Recovery”
Chair of Tourism Working Group, Frans Teguh, stated that the data presented by the Menparekraf Sandiaga shows that tourism is starting to revive from its lowest point. “We must maintain this momentum towards more sustainable tourism recovery,” Frans said.
Although the number of tourists at the beginning of 2022 was still 67 percent lower than in 2019, this number is strived to continue to increase in line with the increasingly controlled handling of the COVID-19 pandemic with the presence of vaccinations and strict health protocols. Because the recovery in the tourism sector cannot be instant, it needs to be carried out gradually and in stages.
“Therefore, within two days, we will discuss how to encourage tourism recovery and how to bring in more sustainable, inclusive, and resilient tourism through the Bali Guidelines,” Frans added.
Also delivering remarks at the 1st TWG were the Chief of Market Intelligence and Competitiveness of UNWTO Sandra Carvao; Senior Vice President, Advocacy and Communication WTTC (World Travel and Tourism Council) Virginia Messina; Director of the Sectoral Policies Department ILO (International Labour Organization) Alette van Leur; and Head of Tourism Unit OECD (Organisation for Economic Co-operation and Development) Jane Stacey.
The 2nd TWG meeting will be held offline in Bali on September 23, 2022, and its peak meeting, namely the “Tourism Ministerial Meeting (TMM)” will be held offline in Bali on September 26, 2022.