Summary of C20 Working Group Dialogue

The C20 Indonesia Policy Dialogue is a dialogue between the C20 working group (WG) and related G20 representatives in conveying their recommendations and point of views so that they become valuable inputs in the recommendations of the G20 forum in November 2022. Several points could be noted from the dialogue are as follows:

Vaccines Access & Global Health Working Group (VAHWG)

The third Priority Issues of G20 HWG have the same area with Civil-20 VAHWG. For G20 HWG, technology transfer to increase the capacity is the most important thing. Now, manufacturing of VDT mostly in global north. G20 prepare the capacity to develop and reach the equal access. But the issues related to the IP Barrier is hard issues to discuss in G20. Since G20 is non legal binding forum and the discussion on harmonization on vaccine certificate to make sure, the around the TRIPS is has been discussed in WTO. G20 use holistic approach to reach this problem. G20 also focus world is not using restriction of mobilization on pandemic. So production and supply chain vaccine and countermeasure goes out without barrier. On financing issues, G20 try to make sure to get more commitment on Financial Intermediary Fund from G20 countries. G20 also put inclusivity and equality approach on FIF. Main challenging in manufacturing is how we can produce the vaccine by conducting the research and development, because 90% of vaccine research was failure and some of vaccine based on the failure of another. On the IP issues, G20 try to reach out the developed countries and also private sector that they have. G20 also try to find the best governance of the FIF to make sure transparency and accountability.

Policy options or recommendations for G20:
C20 push G20 countries to not using any dispute settlement to each G20 countries if there are G20 try to produce vaccine, diagnostic, and therapeutic. C20 push to put Health tools and countermeasures as global public good and must be free of IP restriction. The manufacturing capacity need to be bolstered through open sharing of research data, knowledge, and technology. C20 remind the representation for decision making in FIF mus be set-up, co-created and grounded in equity and inclusion with strong representative from LICs and LMICs and Civil Society from Global South. Formal accountability and transparency mechanisms must be built into its governance structure, particularly on its engagement

Environmental, Climate Justice, & Energy Transition Working Group
Members delivering remarks/commentary on C20 ECE WG recommendations

  • Remarks on the environment stream, Prevention is key in the circular economy to achieve an economy that is based on environmental sustainability
  • Remarks on the climate stream, The work should start with communities → raise awareness about the relation of climate change to build more resilient housing
  • Remarks on the energy stream, Timely disbursement of financing is much needed for energy transition
  • Pushing more comprehensive roadmap for energy transition that centers on people, i.e. employment issues → can be points to intervene in the development of Bali Common Principles in Accelerating Energy Transition Action Plan (Bali COMPACT) or a joint communique between C20 and L20
  • In small island countries, communities are more exposed to the impacts of climate change, from housing to access to clean water.
  • The recommendations are mostly focused on mitigation measures, while recommendation to foster climate adaptation is also crucial.

Gender Equality & Disability Working Group

  • There is a positive response to the three issues, in particular GEDSI. But they couldn’t add more issues other than CARE economy, Women in SME, Digital Economy- Even though GEDSI isn’t specified in the policy paper of EMPOWER, the issue was mentioned by the chair and co-chair, and they would like to propose GEDSI to be discussed next year
  • Policy dialogue findings (G20 responses, C20 common or priority issues with G20): At the Ministerial Conference on Women Empowerment in August 2022, one of the issues that want to be discussed is about mainstreaming GEDSI principal in the decision-making, budgeting, and implementation in the 6 issues on policy notes which discussed education, health, energy environment, employment, and women in SME.

Policy options or recommendations for G20:

  1. To Urge the G20 countries in every decision-making on the development agenda, budgeting, and implementation to use the mainstream rights-based perspective and analysis of Gender Equality, Disability, and Social Inclusion (GEDSI).
  2. Ensuring that G20 countries are committed to making the Disability Engagement Group a part of the upcoming G20.
  3. Ensuring policies on the fulfillment of the right to decent work and economic recovery that promote leadership of women, people with disabilities and other marginalized groups

Follow up actions for the next C20 agenda and G20 summit:

  1. Informal meeting with W20, EMPOWER, and C20 GEDWG before the Ministerial meeting in August
  2. Involvement of C20 GEDWG in the Ministerial Meeting of Ministry Women’s Affairs G20, the possibility of a side event in the ministerial meeting and Ministerial conference on Women Empowerment in August 20223.
  3. The EMPOWER committee supports GEDSI perspectives to be the agenda on G20 Summit 2023 in India presidency

Taxation & Sustainable Financing Working (TSFWG)

G20 SFWG confirmed of receiving and discussed the C20 policy recommendations with the co-chairs from the US and China, and have noted some recommendations to be accounted for based on the last meeting TSFWG had with G20 SFWG on 30th June.

G20 IFAWG has the same position with C20 priority issues and policy recommendations on debt, especially on encouraging G20 members to support low-income countries in tackling debt distress, however the current global debt architecture still challenging, G20 welcome discussion with C20 beyond G20 negotiations.

G20 Finance Track rep discussed C20 proposals and gave detailed response on each of the proposals. The rep also suggested C20 to provide further inputs to OECD Inclusive Framework public consultation that has been taking place until end of August 2022.

On sustainable finance

G20 SFWG provided neutral response, they neither agree or disagree with our recommendations on sustainable finance despite their commitment to follow up. G20 SFWG did not provide clear responses to our policy recommendations, the representative went by explaining again details on their current work streams instead which are: 1) developing framework for transition finance & improving credibility of FIs, 2) scaling up sustainable finance instruments with a focus on accessibility and affordability and 3) policy levers. On policy levers, members of G20 SFWG think that G20 is not supposed to be the only forum to discuss workstream on policy levers and members think that the discussion should be referred back to UNFCCC. However, there was a concern from TSFWG since member states have consistently refused to discuss policy levers for finance in the UNFCCC with the financial sector arguing it is not the right place.

On Debt

G20 IFAWG representative in principle is agreed with C20 proposals to bring developing and poor countries’ concerns on debt restructurisation and will further study the details on C20 proposals on debt relief, continue discussion on Common Framework, recall for further splits of SDR to help highly indebted low and middle income countries, and supports reforms of MDBs development projects financing. G20 currently working on debt relief model for Zambia, Chad and Ethiopia, could be expanded as a common platform model for addressing other countries debt problems. One of the difficulties raised by the rep is about private sector debts which is harder to deal with at G20 as not all debts are G-to-G debts.

Policy options or recommendations for G20:
We demand additional tax instrument such as wealth tax for alternative source of revenues to tackling poverty and inequality. G20 must ensure an effective, transparent, and accountable carbon tax mechanism. We also propose to reduce the current threshold and increase the minimum global tax rate to tackling illicit financial flows and transparency as in BEPS Inclusive Framework Pillar 1&2. We call the Indonesia presidency to be more active in advocating a Global Tax Body under UN system and recognising gender justice in taxation.

We demand for more progressive, inclusive and coherent G20 sustainable finance agenda by implementing regulatory and legally mandatory measures beyond voluntary/market-driven approaches. Our demand on this includes calling Central Bank of G20 jurisdictions to mandate the establishment of green or sustainable taxonomy. Inclusivity means involving CSOs and all stakeholders since the initial stage of policymaking and fully integrate a ‘just’ principles in transition framework.

We demand concrete and daring actions by G20 to encourage more serious discussion on debt architecture resolution and debt restructuring, creating more debt relief beyond DSSI that without undue-burden or conditionality and issue new SDR with the re-channeling it to help low and middle income countries.

On Taxation

G20 rep’s response on C20 proposals is mainly normative and stands on ‘middle ground’. The representative used domestic examples in responding to C20 proposals, for instance, on wealth tax issue, where the rep raised the issue of additional administrative burden to national tax administrators and and possibility of cross-border capital outflow by wealthy people. The G20 rep perceived wealth tax is redundant with income tax system that is now only imposed by 5 countries in Europe.

On C20 proposal for 21-25% of corporate global minimum corporate tax rate, the rep underlined that it might not be feasible in the near future because 15% is a middle ground compromy, given that many countries still have 0% tax holiday. On C20 proposal to reduce the EUR 20B threshold on Pillar 1, G20 rep said that because it was agreed by 137 countries, the threshold may remain the same because even with the current threshold, 80% of corporations have already been the subject of the tax.

On carbon tax. Indonesia presidency perceived that this is a new system and cited Indonesia as one of the pioneers in having a carbon tax law. Under the fiscal policy agency it has been discussed that many countries understand the impact of carbon emission and agree to move to find a solution but not only through a carbon tax mechanism.
G20 supports C20 proposals on UN Global Tax Body, it should stand for all jurisdictions, has authority in regards to international taxation to countries and gives more voice for developing and least developed countries.

In principle, G20 rep also recognized the unfair tax system toward men and women in many countries, G20 supports C20 proposal on gender issues in taxation but no details about implementation was provided.

Education, Digitalization, & Civic Space Working Group

Policy options or recommendations for G20:
The C20 Education, Digitalization, and Civic Space Working Group (EDCWG) recognized the importance of collective action and collaboration among civil society actors to build a sustainable future for all. EDCWG will continue to raise our call to ensure access to quality education and educational continuity which is conducted in a protected, expanded, and vibrant civic space, with meaningful engagement of civil society, to create an inclusive, fair and responsible digital transformation.

Digitalization Sub-WG: (1) Harmonization of regulations and mechanisms for public access/participation in data correction; (2) Data policy needs to consider the reliability and interoperability of data across sectors at multiple levels; (3) Adaptive policies related to data governance accountability are needed in the context of emergencies; (4) Technology-neutral; (5) Digital rights mainstreaming in every data processing; (6) The implementation of data governance needs to build an integrated system and regulation which could be implemented at any level of government; (7) Address the inequality of benefits distribution by supporting the capacity of developing countries to develop the policy framework and infrastructure for a data-driven economy; (8) Integrating a human rights-based approach to cross-border data flows; (9) Recognize issues of privacy; (10) Maintain access to information and support free expression online, particularly during elections, protests, and periods of conflict; (11) Freedom of expression needs to be protected; (12) Support the principle of net neutrality; and (13) Free open source for health and public goods should be free from business interests.

The G20 Digital Economy Working Group (DEWG) has already held workshops on developing cross-border data flows (CBDF) and balancing digital skills for children;

Every country has its own CBDF governance; depending on the current laws, we can continue the earlier discussion in 2019. Since CBDF are a sensitive topic for the G20 countries, DEWG seeks to foster understanding between them. Determining that data consumers also have interests, DEWG works to facilitate a variety of approaches, protections, and perspectives during G20 processes. The DEWG has also talked about using digital identities to secure data flows; and on the issue of digital skills and digital literacy, DEWG focused on vulnerable groups.

The 1st priority issue on Inclusive Digital ID and Health Data System is closely linked with the DEWG’s 3rd priority issue on Cross-Border Data Flow and Data Free-Flow with Trust;

Inclusivity concerns which raised by C20 have partially been addressed, particularly in the issue of digital skills and literacy. Even though factually, the 3rd DEWG meeting appears to be lacking meaningful participation and inclusivity from the affected and most vulnerable groups, and from civil society organizations that can bring their issues to the table.

Civic Space Sub-WG: (1) Protect and expand civic space; (2) put an end to threats, attacks, criminalization and stigmatization of civil society actors; (3) build and strengthen partnership with civil society actors in policy development and decision making process.

Despite not being involved in the 2022 G20 forum, the Indonesia Human Rights Commission endorsed priority issues brought forward by the Civic Space Sub-WG, in which issues in priority issues 1, 2, and 3, are in line with their roles as independent commission. One way to make G20 members put greater attention to civic space issues is pushing involvement of National Human Rights Institutions (NHRIs) from member countries as part of the working group in upcoming presidencies.

Delegation of the Ministry of Law and Human Rights of Indonesia recognize the importance of protecting and expanding civic space as state obligation to human rights protection and promotion.

The EU delegate acknowledged civic space crisis is a global problem that should be resolved. Initiative toward open and pluralistic civic space in G7 Resilient Democracy Statement can be an example of how multilateral dialogue progress the concern, and should inspire the G20 leaders.

Sustainable Development Goals & Humanitarian Working Group

G20 Working Group Responses to the C20 issues:
SDGs-Humanitarian Working Group Present three priority issues: (1) to increase quality investment for resilience and addressing humanitarian financial gaps; (2) to reduce remittance cost up to 3% as been mandated by SDGs 10.c; (3) to strengthen adaptive social protection that is responsive to the world’s vulnerable citizens.

Response from DWG: Sharing the priority issues of the DWG; (1) strengthening recovery from Covid-19 pandemic and ensuring resilience in developing countries (Covering MSMEs and Informal Sector, 2) Adaptive Social Protection, 3) Green Economy and Blue Economy through Low Carbon Development); (2) scaling up innovative financing instrument; (3) renewing global commitment to multilateralism for SDGs; and (4) Coordinating SDGs achievement progress.

Response from EWG: (1) integrating the labour market for persons with disabilities; (2) community-based vocational training to develop productivity sustainably; (3) job creation and small and medium enterprises (SMEs).

Response from the BKF of Ministry of Finance: Sharing initiative on Disaster Pooling Fund as instrument to fill humanitarian/disaster response financing gaps in Indonesia.

Policy dialogue findings (G20 responses, C20 common or priority issues with G20):

Development working group (DWG G20) confirmed that the recommendations by WG SDG’s and Humanitarian is relevant with the DWG G20 recommendations, especially with the issue of Adaptive Social Protection. DWG is also to propose the coordination mechanism for SDGs achievement progress in the G20 forum. While, EWG is to propose the monitoring and evaluation mechanism for ministerial agreement on inclusive labor market for PwD in the G20 forum 2018, Argentina. However, as for the Remittance tax cut, as proposed by WG SDG’s and Humanitarian, will be inserted into the one point of discussion within the EWG later on. Strengthening recovery from the COVID-19 pandemic and ensuring resilience in developing countries to withstand future crises through: 1) MSMEs and Informal Sector, 2) Adaptive Social Protection, 3) Green Economy and Blue Economy through Low Carbon Development.

For EWG,
Labor protection: strengthening occupational safety environment that will be mainly directed to worker at agriculture and fisheries sectors. And also directed to the new labor scheme such as the growing gig workers

Policy options or recommendations for G20:
C20 encourage the EWG to ensure that remittance tax cut to be involved into the EWG discussion or further in the ministerial meeting, since this issue is potentially also be accounted for in the India presidency in the next year.
C20 encourage the G20 (DWG) to ensure the road map and the targeting design for ASP will be inclusive that include women, children, people with disability, indigenous community and those at the bottom least economic into the programs coverage. C20 encourage that pooling fund management is trackable and transparent, it is highly encourage that CSO will be part of fund management governance.

Anti-Corruption Working Group

Policy dialogue findings (G20 responses, C20 common or priority issues with G20):
ACWG G-20 responded positively to the C-20 Priority Issues as both parties have many similar interests, except in the issue of “Corporate Transparency & Integrity”, the issue aforementioned has been highlighted at the national level
Anti-Money Laundering and Asset Recovery Issue brought by C-20 closely linked with what G-20 has done in the Indonesia presidency, G-20 has been discussing Supervisory Measures and Regulatory Framework for Legal Professionals to Mitigate Corruption-Related Money Laundering Risks → related to Customer Due Diligence and Know Your BO.

Beneficial Ownership Transparency issue also needs to be highlighted, as Indonesia is the only G-20 countries that is not the member of FATF
Open Contracting issue (C-20) also linked to the public participation issue (G-20), as it is the core priority issues under the Indonesia presidency
In terms of the issue “tackling corruption in the energy transition phase” C-20, it is linked with background note that being developed by ACWG G-20 regarding “corruption in the renewable energy”

Policy options or recommendations for G20:

  • AML & AR: Designated Non-Financial Business Profession (DNFBP) should carry out similar background check/CDD as banks and other institution; Commit to introduce legislation to compel individuals to explain the source of wealth (e.g. Unexplained Wealth Order in the UK)
  • Beneficial Ownership (BO) Transparency:Implement data verification process of the BO data; Beneficial Ownership Public register that is freely accessible; Stronger enforcement of Beneficial ownership registration
  • Countering Corruption in Energy Transition: Extend screening & due diligence requirement particularly in the critical minerals–highly needed for clean energy transition; Regulate lobbying activities to prevent regulatory capture in the energy sector
  • Open Contracting: Strengthen the role of audit institution to be able to investigate and report corruption in the procurement process through open data tools; Strengthen open data infrastructure by opening data across whole cycle of procurement (planning, contract, award, implementation
  • Corporate Transparency & Integrity: Criminalize private sector bribery–inline with UNCAC provisions; Regulate revolving doors to reduce favoritism and bias in the policy making

C20 Calls on G20 Leaders to Address Multidimensional Global Crises

Jakarta, Thursday (28/7) – The Civil 20 (C20) members across the world gathered in Jakarta on 27-28 July 2022 to finalize policy priorities and recommendations from C20 to G20 leaders on the current multidimensional global crises. 71 million people have fallen into extreme poverty in the first quarter of 2022, and more than 250 million people are estimated to be in need of humanitarian assistance and protection by the end of the year. C20 urges that the multidimensional global crises should be tackled faster, fairer and in a sustainable manner. It is essential that the G20 leaders put people before politics, for economic growth is not a possible thing without actual contribution of the people’s voices, and active participation of all layers of the communities including women and persons with disabilities. C20 fruitfully discussed potential ideas and recommendations that are not only inclusive but also addressing the entirety of the current political, economic and social turmoil.

“Representing the voices of civil societies, we call on G20 leaders to make a concrete effort to provide and share resources to prevent and respond to the current crises. The G20 should increase the quantity and quality of funding for the global crises and recognize the non-state actors as humanitarian actors. It is time for the current leadership to move from ‘doing good for ourselves to ‘doing good for others’”, said Sugeng Bahagijo, Chair of C20 Indonesia in his opening remarks.

2022 has the most significant amount of people in need of humanitarian aid to date. The number still increases and it is driven by Covid-19 pandemic, natural disasters, climate crisis, social-economic injustice, social-political conflict, food and energy crisis, inflation, bad governance and others. Climate change issues have also become one of the biggest triggers of the escalating global humanitarian turmoil as we are likely to fail to meet the Paris Agreement target, which is to limit global warming to 1.5 degrees C or below. “This has impacted various aspects of our lives, including food and water insecurity which leads to malnutrition and an increased gap in various countries; in addition, the world economy would also become 10%-18% smaller,” stated Binny Buchori, Steering Committee of C20 Indonesia.

The food crisis which worsens the current humanitarian crisis is also triggered by spiking inflation and market speculation that has caused a significant increase in food prices. According to the latest World Bank report, more than 80 per cent of Low-Income Countries (LICs) and Low and Middle-Income Countries (LMICs) have seen inflation levels above 5%. While the G20 agenda to achieve the SDGs requires an inclusive global system that promotes economic growth and job market, financial institutions such as banks, hedge funds and traders are stealing the opportunity to squeeze the benefit of the deregulation of the global food markets which negatively affect the wealth of the low-income community. Economic and social policies during this multidimensional crisis should be centred on people, with holistic social protection packages, universal healthcare, and basic services made available across borders to reach the most vulnerable.  

“We have witnessed immense suffering of people around the world hit by multiple crises, and the pandemic especially has shown us the importance of preparedness as well as of the need for fairer and more equal decision making where global economic and health issues are concerned. While the C20 acknowledges the G20’s effort in establishing the Financial Intermediary Fund (FIF) for Pandemic Preparedness, Prevention, and Response (PPR), it is important for the G20 to ensure the FIF has a fully inclusive, globally balanced, multi-stakeholder board with voice and vote for recipient and donor governments. There should also be civil society representation to enhance transparency and accountability.” stated Nadia Daar of Oxfam International during her session at the Plenary titled ‘Questioning the G20 Recovery Strategy When the Brink of Global Recession is Inevitable’. The recent G20 Finance Track’s meeting in July has failed to find common ground on the Ukraine-Russia war, and G20 must realize that the inability and unwillingness of its members to address the issue will create not only a more devastating cost to human lives but also severe economic consequences and a step back in ending poverty.

Responding to the intriguing global crisis data presented by the civil society, Indonesia as the current president of G20 is proposing a strategy to strengthen the recovery and resilience required to withstand future crises in the developing countries, including the last-developed countries and small island developing states. According to Wempi Saputra, Finance Deputy of G20, solving the global crises in terms of food crises, energy crises and financial crises needs strong collaboration and participation of all stakeholders including civil society organizations, and this needs to be done through collective action. Wempi also stated his support for the Civil Society Organizations to be provided more spaces of dialogue and conversation with G20 leaders. Amalia Adininggar Widyasanti, the Deputy Minister for Economic Affairs Ministry of National Development Planning of the Republic of Indonesia, who is also part of the G20 Development Working Group, also attended and echoed the importance of strong collaboration and participation of civil society organizations in G20 dialogues.

“In these times of multiple crises, it is more important than ever for the G20 to commit to inclusive, transparent and democratic global economic governance, and reach out to the most vulnerable communities. Decisions on global issues should be made in a forum where all countries can participate on an equal footing, and that forum is the United Nations.” urged Tove Maria Ryding from the European Network on Debt and Development (EURODAD).

“With the last remaining quarter before the G20 Leaders summit in November is held, the C20 strongly encourages G20 Leaders to intensify dialogues and engage with Civil Society Organizations to produce a concrete-deliverable and strong-commitment which address and provides more ambitious solutions to the current multidimensional crisis affecting people on a day-to-day basis.”, said Ah Maftuchan, C20 Sherpa.

Seize the Energy Transition Funding Opportunity

One out of three panel sessions at the G20 seminar series that discuss sustainable financing opportunities for energy transition in Indonesia (27/07/2022). (Doc. Seminar Secretariat )

Jakarta, 28 July 2022- Indonesia’s energy transition requires significant investment to develop renewable energy generation, clean fuels, power grids, and energy storage. However, Indonesia also has a huge opportunity to attract investment in the renewable energy sector while developing innovative financing instruments

“Indonesia at least needs investment for the energy transition of around USD 1 trillion by 2060”, said Minister of Energy and Mineral Resources, Arifin Tasrif in his speech at the G20 seminar series entitled “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition In Emerging Economies”

Based on a study by the Institute for Essential Services Reform (IESR), investment needs for decarbonization of the energy sector range from USD 20–25 billion per year between 2020 and 2030 and around USD 40–60 billion per year from 2030 to 2050.

“Indonesia owns renewable energy potential and energy needs that will continuously grow. In many ways, Indonesia should become a main investment target. Unfortunately, inconsistency on policy, regulation and lack of integrated coordination across sectors makes investors perceive Indonesia as a high risk investment market,” explained Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR). According to the IISD (International Institute for Sustainable Development) report in 2020, only 7.8% of total investment was allocated for renewable energy in Indonesia. The rest is still focusing on fossil fuel. Peter Wooders, Senior Director Energy of IISD emphasized that the G20 should set a clear direction towards clean energy – which gradually includes a move away from supporting fossil fuels.

“While public finance is not enough on its own, its role is essential – and many mechanisms can help”, he added.

Therefore, in this G20 Seminar Series, the discussion about Islamic financing was elevated such as waqf, sukuk and green bonds to enrich the perspective of energy transition financing potential.

Islamic finance also plays an important role in funding various sustainable projects, including renewable energy. According to Indonesia Islamic Economic Masterplan 2019–2024, renewable energy has received some support through the Murabaha (the principle of buying and selling) scheme, as well as donations through zakat.

Anna Skarbek, CEO Climateworks Centre stated that investment opportunities in climate transition and innovations in investment models across ASEAN region are profound.

Yet, Kuki Soejachmoen, Executive Director of Indonesia Research Institute for Decarbonization (IRID) as well as the seminar’s moderator reminded that any financing mechanism must pay attention to inclusivity and just/ fairness for everyone. Energy transition impact will gradually meet the end of fossil fuel and its relevant supply chain business, early retirement, new job opportunity, new skill, new industry – hence, it must be addressed in a good manner.

$200 million Grant Commitment from Australia to Indonesia 

In his opening remarks, Andrew Hudson, CEO Centre for Policy Development, specifically raised the recent grant commitment dialogue between President Joko Widodo and Prime Minister Anthony Albanese, as a real example of the importance of cross-border dialogue.

“It is crucial that we engage in a dialogue that shares experiences of the action required for effective,scalable and impactful cross-border investment in climate transition by both public and private-sector investors. We need to use the ambition and momentum of the $200 million climate and infrastructure partnership announced between Australia and Indonesia at the recent leaders’ meeting”

On the road to G20 Summit, this seminar series was held by Energy Transition Working Group (ETWG) Indonesia G20 2022 and T20 Indonesia, in collaboration with the Centre For Policy Development (CPD) Australia, Climateworks Centre, International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), and the Institute for Essential Services Reform (IESR), supported by Asia Investor Group on Climate Change (AIGCC).

Sustainable Finance and Sharia Financing Become Options to Achieve Energy Transition Target

Vice President Ma’ruf Amin together with Minister of Finance Sri Mulyani Indrawati and Minister of Energy and Mineral Resources Arifin Tasrif at the G20 seminar series (27/07/2002). (Doc. Seminar Secretariat)

Jakarta, 28 July 2022 – Towards G20 Summit, Energy Transition Working Group (ETWG) Indonesia G20 2022 and T20 Indonesia conducted a seminar series titled “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition in Emerging Economies”.

Three main issues under energy transition are accessibility, technology and financing. Prior to the G20 Summit in November this year, ETWG is expected to explore innovations, especially on technology, financing and discuss the best model to mobilize public and private financing for renewable energy. Head of ETWG Forum, Yudo D.Priaadi, said that unlocking and seizing financing opportunities will be essential for Indonesia in widening accessibility and inclusivity to create sustainable energy transition.

Responding to that, Chairman of The Board of Commissioner of The Indonesia Financial Services Authority Mahendra Siregar stated, “OJK committed to promote sustainable financing to ensure smooth transition toward a low carbon economy”.

“OJK supports the government in the realization of commitment in the Paris Agreement in regards to Net Zero Emission in 2050 by issuing several sustainable financing roadmap since 2015 where the second phase will be completed in 2021-2025 period”, he added.

In the meantime, Vice President of The Republic of Indonesia, Ma’aruf Amin explained, sustainable financing in Indonesia can be done side by side with the Sharia financing. The Sharia principle upholds the earth’s sustainability. Hence, Islamic financing has huge potential to finance New and Renewable Energy, for instance through waqf, sukuk and bonds.

He added,”Sukuk’s innovation and promotion need to be increased in order to attract more public funding”.

Addressing that statement, Minister of Finance of The Republic of Indonesia, Sri Mulyani Indrawati, agrees that sukuk waqf can be chosen as a great option to achieve energy transition target. 

From a framework side, she explained that the energy transition priority will be accommodated through Energy Transition Mechanism (ETM) that was launched last year. ETM will serve as a framework in providing necessary financing for national energy transition acceleration by mobilizing commercial and noncommercial fund sources in a sustainable way. This platform enables the increasing of Indonesia’s energy infrastructure and expedites clean energy transition toward NZE in a just/ fair and affordable manner.

Anna Skarbek, CEO Climateworks Centre, as one of the seminar secretariat’s partners added, “The momentum of energy transition financing in Indonesia is visible. ETM Platform under the Ministry of Finance through PT Sarana Multi Infrastruktur (SMI) and Asian Development Bank (ADB) is a concrete example that shows this country took steps to attract more investment and create various financing opportunities schemes for energy transition”.

This seminar series was hosted by Energy Transition Working Group (ETWG) Indonesia G20 2022 and T20 Indonesia, in collaboration with the Centre For Policy Development (CPD) Australia, Climateworks Centre, International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), and the Institute for Essential Services Reform (IESR), supported by Asia Investor Group on Climate Change (AIGCC).

Strengthening a Just Energy Transition with Sustainable Finance

Vice President Ma’ruf Amin took a picture with keynote speakers and representatives from each partner organization at the G20 seminar series hosted by the Ministry of Energy and Mineral Resources (Doc. Seminar Secretariat)

Jakarta, 28 July 2022– The energy transition is crucial and urgent to be implemented to reduce greenhouse gas (GHG) emissions and limit the earth’s temperature below 1.5 degrees Celsius by 2050, according to the Paris Agreement. Strengthening the just energy transition requires sustainable and innovative funding.

Minister of Energy and Mineral Resources, Arifin Tasrif in his speech at the G20 seminar series entitled “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition In Emerging Economies” said Indonesia already has an energy transition roadmap to achieve carbon neutrality by 2060 or earlier.

“PLN through its national energy supply business plan (RUPTL) by 2021-2023, has also targeted the cleaner business plan by adding power plants generated from renewable energy up to 51.6%. Indonesia has planned to build an archipelago super grid to ramp up renewable energy development and maintain electrical stability and security,” said Arifin.

Arifin added that at least Indonesia needs investment for the energy transition of around USD 1 trillion by 2060. “Therefore, Indonesia continues to create strengthened relations with cooperation with partner countries and international financial institutions to find innovative funding mechanisms,” he said.

Adding up, Yudo D. Priaadi, Chair of the Energy Transition Working Group (ETWG) G20 2022, said that innovative financing and Islamic (Islamic) financing have the potential to open opportunities to increase accessibility and inclusiveness toward sustainable financing.

“We must deploy an effective and proven platform as well as securing the investment,” he said.

Mahendra Siregar, Chairman of the Board of Commissioners of the Indonesia Financial Services Authority, stressed that besides using sustainable financing to fund the energy transition, it should also be aligned with poverty alleviation efforts. He stated that the energy transition plan with sustainable financing also needs to provide profit.

“OJK plans to balance the transition and green economy, social stability, and alleviate poverty. OJK convinces the banks and public credit companies to address climate change,” he explained on the same webinar.

Kuki Soejachmoen, Executive Director of the Indonesia Research Institute for Decarbonization (IRID), said that the energy transition does not only focus on the gradual transformation of the GHG emitting sectors, but also on new jobs, new industries, new skills, new investments and other opportunities to create a resilient society.

“The inclusiveness and fairness in the energy transition process are significant for society, the economy, industry and the environment,” said Kuki.

A just energy transition also needs to ensure access to quality energy for all, especially for the poor.

“The energy transition, one of which is by retiring coal-fired power plants, as is being reviewed by the Ministry of Energy and Mineral Resources of 9.2 GW. According to the IESR study, it requires about USD 4.3 billion. But it will provide long-term benefits for the people of Indonesia,” explained Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR).

He believed that managing energy transition with a people-centered approach will ensure the benefits and costs involved in the transformation of the energy system are distributed fairly and protect the most vulnerable in society.

Energy Transition Working Group (ETWG) Indonesia G20 2022 and T20 Indonesia, in collaboration with Australia’s Center for Policy Development (CPD), Climateworks Centre, International Institute for Sustainable Development (IISD), Indonesia Research Institute for Decarbonization (IRID), and the Institute for Essential Services Reform (IESR), and supported by the Asia Investor Group on Climate Change (AIGCC), organized the G20 seminar series entitled “Unlocking Innovative Financing Schemes and Islamic Finance to Accelerate a Just Energy Transition In Emerging Economies.”

The Sundanese Philosophy Silih Asih, Silih Asah, Silih Asuh, Silih Wawangi Strengthens G20 Mutual Cooperation to Recover Education

Bandung, 27 July 2022 – Following the second G20 Education Working Group (G20 EdWG) meeting last May, the Ministry of Education, Culture, Research and Technology (MoECRT) of the Republic of Indonesia held the third G20 Education Working Group (EdWG) in a hybrid format in the city of Bandung, West Java, on 27 to 28 July 2022.

Chair of G20 EdWG, Iwan Syahril said in a statement that the MoECRT continues to strengthen its commitment to invite the world to recover together and recover stronger from the pandemic. “During the third meeting, the MoECRT, together with delegates of the G20 member countries, special invitees, international organizations, as well as working groups, and engagement groups is planned to have further discussion on the Education Working Group’s four priority agendas ahead of the ministerial summit in September,” said Iwan Syahril.

In his statement, Iwan also explained the reason behind the selection of Bandung as the host city of the third EdWG meeting. It is driven by the relevancy of silih asih, silih asah, silih asuh, silih wawangi philosophy held dear by Sundanese–native to the western region of Java island–to the theme taken for G20 Indonesia presidency, ‘Recover Together, Recover Stronger’.

Silih or “mutual” represents the idea of a transformative change that happens in a reciprocal manner. “At the G20 meetings on education that we lead, the delegates actively exchanged responses. By having an active forum, the delegates maintain the shared value of gotong royong in creating global recovery, especially education,” said Iwan.

Meanwhile, silih asih means taking care of each other; silih asah is to educate each other; silih asuh means nurturing each other; and while, silih wawangi means supporting each other towards the betterment.

“In my opinion, to strengthen the commitment to recover together by collaborating to achieve common good, or in Indonesian language gotong royong, the Sundanese philosophy of silih asih, silih asah, silih asuh, silih wawangi is highly relevant and serves as reinforcement value to the overall effort,” concluded Iwan, the Director General of Teachers and Education Personnel, and the Acting Director General of Early Childhood Education, Primary Education , and Secondary Education of the MoECRT.

During the third EdWG meeting, the MoECRT leads the discussion on two EdWG priority agendas, namely Solidarity and Partnership and The Future of Work Post-COVID-19 besides further discussions on the G20 EdWG Report and compendium, as well as Education Ministers’ Declaration as the forum’s expected deliverables.

Minister of Communications and Informatics Emphasizes Digital Sovereignty in Cross-Border Data Flow

July 20, 2022 A future where the world increasingly relies on the use of data, including data-driven policy, is inevitable. Minister of Communications and Informatics Johnny G. Plate stated that the use of data is increasingly widespread among government and private institutions, thus requiring a consensus understanding of data sovereignty and global data governance.

“Therefore, the discussion on the third priority issue of Data Free Flow with Trust (DFFT) and Cross-Border Data Flow (CBDF) at this Digital Economy Working Group (DEWG) meeting will be more essential,” he told the media at a Press Conference during the G20 3rd DEWG meeting which was held in a  hybrid format in Labuan Bajo of West Manggarai in East Nusa Tenggara province, Wednesday (June 20).

Communications and Informatics Minister Johnny stated that today, the world increasingly needs a data governance that is accepted based on a common view. According to him, one of the approaches and practices that pays attention to global data sovereignty is contained in the DFFT and CBDF principles.

“We have not arrived to this condition. These commonalities take into account various important values, including fairness, lawfulness, transparency and in certain aspects of cross-country reciprocity,” he explained.

The Minister stated that the recognition of these aspects not only is beneficial in global economy recovery but also encourages the creation of a concrete synergy and collaboration to accommodate the development of digital technology innovation comprehensively.

“This issue belongs to not only developing countries, but also developed countries and least developed countries. This discussion will be very useful in the world which is increasingly influenced by cross-border data exchange,” he said.

Indonesia’s G20 presidency voices and promotes data governance issue to the global community and all communities in all corners of the world. According to the Minister, the use of benefit-for-all data is a natural thing and becomes a common goal.

“Without proper and inclusive data governance practices, it is almost certain that there will be unbalanced use of data which potentially make data a limited commodity and result in compartmentalized or grouped data utilization,” he explained.

Furthermore, the Minister stated that DEWG delegates will have a discussion on the framework for cross-country data use on Thursday (June 21).

“Global data governance issues, including digital security, will be discussed tomorrow on the second day of the meeting,” he stressed.

Johnny is optimistic that the whole events of the 3rd DEWG Meeting will run well. According to him, the dynamics of the discussion were interesting, regardless of the differences during the discussion.

“Members have a vision of promoting global recovery together through the use of digital technology. And I am also looking forward to how G20 delegates will enrich the discussion at this meeting with various interesting views that will be expressed at tomorrow’s meeting,” he said.

The Minister also invited all parties to continue to support the convention of DEWG series of events in Indonesia’s G20 Presidency.

“Together, let’s strengthen synergies and promote an inclusive, empowering, and sustainable global recovery!” he appealed.

Communications and Informatics Minister Emphasizes the Importance of Digital Skills and Literacy

July 20, 2022 – Minister of Communications and Informatics Johnny G. Plate opened the Third Digital Economy Working Group (DEWG) Meeting of Indonesia’s G20 Presidency. This meeting discussed the development of a global digital ecosystem framework.

“For this meeting,  we have set a series of discussions on the second priority issue of DEWG, namely Digital Skills and Digital Literacy as well as the third priority issue, Data Free Flow with Trust (DFFT) and Cross-Border Data Flow (CBDF). Both issues are vitally important to be discussed for the development of a global digital ecosystem framework,” he told the press conference which was held in a hybrid format from Labuan Bajo of West Manggarai in East Nusa Tenggara province, Wednesday (June 20).

Communications and Informatics Minister Johnny stated that the DEWG Forum will discuss the responsibilities of stakeholders in terms of Digital Skills and Literacy.

“This serves as a reminder that development of digital literacy and skill is a global responsibility of all relevant stakeholders including the government, industry players, and non-governmental entities,” he said.

According to him, with the more massive use of digital technology, a collaboration is required to ensure that everyone can have access.

“Prepare talents and ecosystem through the development of digital literacy and skills, to bring about a global inclusive digital transformation,” he said.

Citing the International Telecommunication Union’s (ITU) data, Johnny stated that by 2022, one out of three people in the world chooses not to be connected to the internet.

“Because of lacking in strong self-confidence and zero understanding on how to use the internet properly,” he explained.

In this regards, the Minister expected the third DEWG meeting to discuss three deliverables which include:

i) Recommendations and Policies to Increase Involvement of Vulnerable Group in the Digital Economy;

ii) G20 Toolkit on Digital Skills and Digital Literacy and workshops; and iii) Summary of Practices and Policies on Advanced Digital Skills and Digital Literacy.

“We hope this meeting will facilitate exchange of views from G20 DEWG delegates in the discussion on these deliverables,” he said

Furthermore, Minister of Communications and Informatics emphasized that all of these deliverables are very relevant in realizing a global digital economy ecosystem and an increasingly inclusive world economy.

“This is in line with the efforts in meeting the increasing demand of digital skills and literacy in cross-border data exchange,” he said.

The third DEWG Meeting is a continuation of the previous DEWG meeting which discussed the role of Connectivity in Post-COVID-19 Recovery as DEWG’s First Priority issue. Through the discussions, the delegation of G20 member countries expressed their aspiration to optimize digital connectivity as one of the main instruments for the recovery of the post-pandemic world.

Involve Digital Native, Minister Johnny: Government Targets Digital Takeoff

July 20, 2022 – The government seeks to build a digital space by improving the quality and competence of digital human resources. Communications and Informatics Minister Johnny G. Plate explained the objective is to ensure future generations of Indonesia could involve in the global digital transformation.

“Our digital natives and our millennial generation are large in number. We must focus on building our digital space by increasing our digital human resources, especially millennials and Gen Z,” he said after opening the 3rd DEWG Meeting in Labuan Bajo, West Manggarai, East Nusa Tenggara, Wednesday, July 20.

Currently, the government is accelerating digital infrastructure development to make it more equitable. According to Minister Johnny, the aim is to make Indonesia take off digitally.

“We are building everything. Yes, now it is much better than before. It can reach nationally. Hopefully, at the end of the Onward Indonesia cabinet, Indonesia will be ready to take off in terms of digital,” he said.

Minister Johnny emphasized that the government is not only building digital infrastructure but is trying to develop global cooperation. One of them is through international forums such as the G20 Presidency DEWG.

“This morning, we also talked with fellow G20 member countries on building a common agreement on digital policies. Because we are entering a new world, a new world: the digital world. We must manage properly,” he explained.

According to Minister Johnny, discussions in international forums such as DEWG are an effort to prepare governance for future generations.

“Development of digital infrastructure, the G20 meeting, discussion of material and priority issues of the Digital Economy Working Group is for the current generation and future generations of Indonesia,” he said.

Minister Johnny had included the younger generation to build awareness and connect them to the digital world and policy making.

“Symbolically, we are introducing the digital world to millennials and children. Today, three representatives from senior high schools in the Manggarai, Labuan Bajo, and Ruteng areas are here with us, organizing the DEWG. I think this is a good experience for them,” he explained.

According to Minister Johnny, the younger generation’s involvement in international events discussing digitalization is one of the concrete steps to open up opportunities for millennials to partake in accelerating digital transformation.

“For them to know. Of the many Indonesian children; of the millennial generation, these 20 people have an extraordinary opportunity to partake. It is one of the concrete measures,” ​​he said.

Prioritizing Human Empowerment, Minister Johnny Encourages People to Take Advantage of the Digital Economy Actively

July 20, 2022 – Indonesia’s digital economy potential is massive. Communications and Informatics Minister Johnny G. Plate stated that the projection in 2025 will reach USD146 billion. Even in 2030, it could reach USD315 billion, equivalent to 42% of the ASEAN digital economy. Therefore, Minister Johnny encouraged the public to take an active part in the digital economy development to realize human empowerment in digital transformation (human-centered digital development).

“It is huge (potential). It is now a task and a challenge for all of us to take an active part. So, the entire community can enjoy the benefits of a rapidly growing and developing economy. In particular, the lower middle class or SMEs. That is what we have to empower together,” he said after opening the Third Meeting of the Digital Economy Working Group (DEWG) of the G20 Indonesia Presidency in Labuan Bajo, West Manggarai, East Nusa Tenggara, Wednesday, July 20.

Minister Johnny stated that right now, the Government and operators have built information and communication technology (ICT) infrastructure from upstream to downstream. It needs the community’s ability to utilize digital infrastructure in the downstream sector.

“The Government has been working hard. The President himself gave clear directives to ensure the infrastructure deployment at all levels, reaching all areas of our homeland. In the Advanced Indonesia Cabinet, the ability to utilize it in the downstream sector must be balancing upstream infrastructure development,” he said.

Minister Johnny stated that infrastructure development is massive and equitable. The community can utilize it. Therefore, the Government also encourages digital human resources development.

“Once again, yes. The infrastructure is built massively, on a large scale, and reaches all Indonesian territory. But, we also need to encourage our people to utilize and use the digital downstream sector as well as possible,” he explained.

Minister Johnny emphasized that this is also the Government’s priority agenda in the Indonesian G20 Presidency: human empowerment in digital transformation.

“This is included in our three G20 priority agendas. In the context of empowerment, empowerment is for human-centered digital development,” he said.

The Third DEWG G20 meeting discussed cross-border data flows and equitable use of data during global digital transformation or Cross Border Data Free Flow and Data Free Flow With Trust and Digital Skill and Digital Literacy. Previously, at the first and second meetings, DEWG G20 discussed two other issues, namely Connectivity and Post Covid-19 Recovery and Digital Skill and Digital Literacy.