Opening the Third DEWG Meeting, Communications and Informatics Minister: Tabe Mai Ce’e Labuan Bajo

July 20, 2022 – Communications and Informatics Minister Johnny G. Plate welcomed the delegation of G20 member countries at the Third Meeting of the Digital Economy Working Group (DEWG) of the Indonesian G20 Presidency.

Minister Johnny stated that the Government of the Republic of Indonesia would facilitate further discussions from the previous two meetings productively.

“Welcome to Labuan Bajo, or local people say ‘Tabe Mai Ce’e” Labuan Bajo’ Labuan Bajo. This place is in the west of my hometown, and it reminds me of my childhood on this island,” he said in his opening remarks for the 3rd DEWG Meeting at the Meruorah Hotel, West Manggarai, East Nusa Tenggara, Wednesday, July 20.

Minister Johnny expressed the Indonesian Government’s appreciation for delegations from 17 countries who present at Labuan Bajo and delegates from 3 countries virtually.

“It is an honor for me to be able to welcome all of you today to the 3rd Digital Economy Working Group,” he said.

According to him, the G20 Presidency is an honor for the Indonesian people. Through this role, the Government of the Republic of Indonesia facilitates and encourages the progress of discussions between public and private stakeholders on various issues of global digital transformation.

“The Digital Economy Working Group meeting has been very productive so far. I appreciate all the efforts of the delegates who were here today and those who joined virtually,” he explained.

In addition to the delegations of 20 G20 member countries, the Netherlands, Spain, and Singapore also attended the 3rd meeting as invitees. Furthermore, National Knowledge Partners include Padjadjaran University, University of Indonesia, and Gadjah Mada University; and Global Knowledge Partners: the International Telecommunication Union (ITU), United Nations Economic and Social Commissions for Asia and the Pacific (UN ESCAP), United Nations Conference on Trade and Development (UNCTAD), and the Organization for Economic Co-operation and Development (OECD).

In the opening, Minister Johnny was accompanied by the Secretary General of the Ministry of Communication and Information and Chair of the DEWG G20 Presidency of Indonesia Mira Tayyiba, Special Staff of the Minister of Communication and Information for Digital Policy, and HR Development and Alternate Chair of the Digital Economy Working Group Dedy Permadi.

Ranks of officials were also present: Inspector General Doddy Setiadi, Director General of Information and Public Communication Usman Kansong, Head of the Human Resources Research and Development Agency Hary Budiarto, and Expert Staff of the Minister of Communication and Information for Communication and Mass Media Widodo Muktiyo.

Indonesia G20 Presidency publishes the G20 Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks

At the 3rd G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Bali on 15-16 July, the G20 welcomed the report on the Independent Review of Multilateral Development Banks’ (MDBs’) Capital Adequacy Frameworks (CAFs). Minister Sri Mulyani Indrawati, chairing the G20 FMCBG meeting with Governor Perry Warjiyo, said “MDBs have a critical role in providing affordable financing to support economic recovery and to help achieve Sustainable Development Goals (SDGs) in a post-pandemic context”. (Full version here: https://g20.org/wp-content/uploads/2022/07/CAF-Review-Report.pdf).

In July 2021, under the Italian Presidency, G20 Finance Ministers and Central Bank Governors agreed to launch the Independent Review of MDBs’ CAFs. The Review was conducted during the Indonesia G20 Presidency by a Panel, led by Dr Frannie Léautier as Expert Chair and composed of 13 Experts, designated by the G20 International Financial Architecture Working Group.

The Presidency, reflecting G20 members’ comments, conveyed its high appreciation to the Panel in finalizing the Review, the key objectives of which were to:

  • Provide credible and transparent benchmarks on how to evaluate MDB CAFs;
  • Enable shareholders, MDBs, and CRAs to develop a consistent understanding of MDB’s capital adequacy frameworks;
  • Enable shareholders to consider potential adaptations to the current frameworks to maximize the MDBs’ financing capacity.

The Report sets out a package of recommendations aimed at unlocking additional resources to maximize MDB development impact, while persevering their credit ratings and preferred creditor treatment:

  1. Redefine the Approach to Risk Appetite in Capital Adequacy Frameworks
  2. Incorporate Uplift from Callable Capital into MDB Capital Adequacy Frameworks
  3. Implement Innovations to Strengthen MDB Capital Adequacy and Lending Headroom
  4. Assess CRA Methodologies and engagement
  5. Improve the Enabling Environment for Capital Adequacy Governance

In Bali, the G20 reiterated their support to the work of the Independent Panel and committed to further discuss the Panel’s report. Under Indonesian Presidency, the G20 will continue its work by developing a roadmap for the implementation of the recommendations to find consensus among the members. This will be carried out in consultation with MDBs, and other relevant stakeholders, in full respect of MDBs’ own governing arrangements.

Full PDF version here : https://g20.org/wp-content/uploads/2022/07/Indonesia-G20-Presidency-publishes-the-G20-Independent-Review-of-Multilateral-Development-Banks-Capital-Adequacy-Frameworks.pdf

Women20 Summit in Lake Toba Prepares Communique to be Presented to the President of the Republic of Indonesia

W20 is the first G20 Engagement Group that kicked off last December 2021, as well as the first to complete the summit. From a series of international-scale meetings, the W20 is also the first that has produced a communique.

Simalungun, 18 July 2022. The Women 20 (W20) Summit will take place on 19-21 July 2022, at the Niagara and The Kaldera Hotels which are located right on the shores of Lake Toba, Parapat, Simalungun Regency, North Sumatra. A series of agendas are ready to be held, including dialogues and conferences with a focus on several topics such as addressing discrimination for gender equality policy-making, women’s economic empowerment, inclusive economic growth for women living in rural areas and women with disabilities, and business assistance. The W20 Summit is also ready to deliver the W20 Communique to the President of the Republic of Indonesia as G20 Chairman.

A number of high-ranking officials are scheduled to attend the meeting, such as Minister of Women’s Empowerment and Child Protection, Bintang Puspayoga, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan, Minister of Finance, Sri Mulyani, Coordinating Minister for Economic Affairs, Airlangga Hartarto, Deputy Speaker of the People’s Consultative Assembly (MPR) Lestari Moerdijat, Minister of Tourism and Creative Economy Sandiaga Uno, Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki, House Speaker and Chair of P20 Indonesia, Puan Maharani, and the Governor of North Sumatra, Edy Rahmayadi. Several international figures from 18 G20 member countries will also be present at W20 Summit. Some of them are Andrea Grobocopatel from Argentina, Caitlin Byrne from Australia, Martine Marandel from France, Juliana Rosin from Germany, Pam Rajput and H.E. Manoj Kumar Bharti from India, Lester Asamoah from the United States of America, and Narnia Bohler – Muller from South Africa.

Chair of W20 Indonesia, Hadriani Uli Silalahi said, “W20 is the first engagement group from the Group of Twenty (G20)that kicked off in December 2021, as well as the first to complete the summit. From a series of international-scale meetings, W20 is also the first engagement group that has produced a communique. We will submit this document directly to the President of the Republic of Indonesia, Joko Widodo, as the chairman of Indonesia’s G20 Presidency at the closing of the W20 Summit.”

According to Uli, since the kick-off in December 2021, the W20 delegation has held various integrated discussions with input and recommendations from various partners. They are organizations that focus on women and come from a number of G20 member countries. Through the communique submitted to the president, Uli hoped that various discussion efforts that have been carried out by W20 Indonesia can bring issues related to gender, especially rural women and women with disabilities, as one of the G20’s focuses.

In line with this, the Co-Chair of W20 Indonesia, Dian Siswarini added, “The Summit in Lake Toba will also focus on discussing various priority issues of W20, especially regarding discrimination, inclusive economy, to women-owned SMEs. In addition, there are also discussions on issues related to increasing access of women with disabilities and rural women in the fields of education, technology, finance, and health. All of them will be packaged in a series of policy dialogues and conferences.

According to Dian, the W20 Summit agenda is also expected to create commitments, policies, and recommendations to become the main focus of the G20 on four important points. First, to promote equality, security, and welfare by eliminating discrimination that hinders women’s participation in the economy. Second, achieving economic inclusion by supporting MSMEs owned and managed by women. Third, addressing vulnerability to increase resilience, with a focus on women with disabilities and rural women. Fourth, campaign for gender equality related to health.

The meeting which will take place in a hybrid format will raise three main sessions. The first day will be opened with a dialogue with the theme Strengthening sisterhood among Women for Global Diplomacy, Sharing Inspiration and Aspiration, which will be attended by W20 delegates from South Korea, Minah Kang, India delegate, Priti Darooka, and delegate from Germany, Caroline Ausserer.

The meeting is followed by an international conference on women’s empowerment at the G20 which will be divided into two forums at the same time. The first forum discussed two important themes, namely, first, how to eliminate discrimination in policy-making that focuses on gender equality. Second, how to eliminate inequality and seize opportunities in women’s economic empowerment. The forum will present speakers Head of We-Fi Secretariat, Wendy Teleki, who will raise the topic of narrowing the financing gap for women-owned SMEs. In addition, the CEO and Founder of Global Invest Her who is also a W20 Delegate from EU, Anne Ravanona, will raise the topic of gender-responsive procurement.

Another forum will raise two other important issues namely, first, how the landscape of gender-based investment creates a strong influence from women-led businesses. Second, how to manage intersectionality for inclusive economic growth. In this case, women in rural areas and women with disabilities. This forum will present speakers CEO of TORAJAMELO Indonesia, Aparna Saxena, CEO of Investing in Women Australia, Julia Newton-Hewes, and UN Women’s Head of Women’s Empowerment Principles and Economic Policy Advisor, Anna Falth.

Parallel to those forums, there is also business assistance for women-owned MSMEs. This activity aims to provide opportunities for W20 delegates, advocates, and practitioners to interact directly with women entrepreneurs. This assistance will raise several points, including women’s leadership, how to create a long-term business, marketing, branding, to financial management. This activity is fully supported by several institutions that focus on women’s empowerment, namely, XL Axiata, LPEI (Indonesian Export and Import Financing Agency), Mitra Gobi and Ozora Yatrapaktaja, and Wanwir Femina.

The second day will be opened with a discussion with Miss Universe. Followed by a dialogue on women’s empowerment in economy and tourism. This dialogue will be opened by Co-Chair of W20 Indonesia, Dian Siswarini, Managing Director of LPEI, Chesna Fizetty Anwar, and Deputy Speaker of the People’s Consultative Assembly (MPR) Lestari Moerdijat. In addition, also present to open the activity, the Minister of Tourism and Creative Economy Sandiaga Uno, Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki.

After that,the founder of TORAJAMELO, Dinny Jusuf will take the participants to enter the cultural exhibition and get to know more about women and weaving culture in Indonesia. Participants can also enjoy the beauty of Indonesian culture through local textile exhibitions coupled with the SMEs exhibition. Followed by the signing of a Memorandum of Understanding and cooperation between G20 member countries. The agenda for the second day will be closed with the announcement of the winners of W20 Sispreneur.

The agenda on the third day will open with a dialogue “From Brisbane to Toba”, which will discuss high-level policies regarding the G20 commitment to gender equality. This dialogue will present visual data on the position of women in the workforce. Also present as speakers in this dialogue: Indonesian Foreign Affairs Minister, Retno Marsudi,Australian Finance Minister,  Katy Gallagher, Canadian Foreign Affairs Minister, Melanie Joly, Executive Director of UN Women, Sima Sami Bahous and Managing Director for Development Policy and Partnerships of the World Bank. , Mari Elka Pangestu.

The activity followed by a discussion on the commitment to gender equality and the tangible results of supporting W20 in the community, such as EQUALS, We-Fi, We-Act, Gender Data Network, Women’s World Banking, W20 Sispreneur, and Together Digital (Ant. foundations). The President of the Republic of Indonesia, Joko Widodo, will present closing remarks as well as receive a communique from representatives of W20 delegation.

In addition to handing over the W20 Communique to the President of the Republic of Indonesia as the chairman of the G20 Presidency of Indonesia, the winner of the Incubation program for 1,000 Women MSMEs assisted by ‘W20 Sispreneur’ will also be announced with a business capital prize of a total of Rp. 300 million as a concrete action from W20 Indonesia.

Promoting Lake Toba

Lake Toba was chosen as the location for one of W20 Indonesia meetings with considerations, among others, to raise and promote it to the international world. Moreover, Lake Toba has been designated as one of the super priority tourist destinations. In addition to having a very beautiful natural panorama, the cultural custom of its surrounding community is also very exotic.

In addition to attending a series of meetings and discussions, the delegates of the W20 Summit will be invited to cross to Samosir Island, which located in the middle of Lake Toba.

Samosir Island is about 37 km from Parapat. It takes about 30 minutes to reach this island. The visit to Samosir Island is of course to continue the vision of W20 Indonesia in terms of promoting regional exotic tourism in the country, including those that are Indonesia’s priority tourist destinations. Previously, several meetings had been held successively in Likupang, North Sulawesi, Batu, East Java, Banjarmasin, South Kalimantan, and Manokwari, West Papua.

W20 is organized in collaboration with International Knowledge Partners, UN agencies, civil society organizations, academia, government agencies and private sector. After Toba, North Sumatra, the next agenda will be held in Denpasar, Bali from September to October 2022

ABOUT WOMEN20

Women20 (W20), is a G20 Engagement Group that establish a women’s empowerment network to encourage the adoption of G20 commitments on women’s issues. The main objective of the W20 is to promote women’s economic empowerment as an integral part of the G20 process. Diversity and full participation are critical to fostering resilient, sustainable as well as viable economy and society, whereas homogeneous systems bear risks and uncertainties. The economic empowerment of women is fundamental to a prosperous world and essential for economic growth, a stable economy and social development.

G20 Finance Ministers and Central Bank Governors Converge to More Concrete Actions amid Increasing Global Challenges

Nusa Dua – Bali, July 16th, 2022 – Today, Saturday (16/07), the G20 Ministers of Finance and Governors of Central Banks have finished the third meeting under the Indonesian G20 Presidency. The meeting was attended by G20 members, invited countries including Ukraine, and international organizations.

G20 Finance Ministers and Central Bank Governors (FMCBG) discussed seven agendas, namely 1) global economy; 2) global health agenda; 3) international financial architecture; 4) financial sector issues; 5) sustainable finance; 6) infrastructure; and 7) international taxation. In this 3rd meeting, Finance Ministers and Central Bank Governors of G20, Minister Sri Mulyani Indrawati, and Governor Perry Warjiyo co-chaired the sessions.

At the press conference, Indonesia’s Finance Minister, Sri Mulyani Indrawati and Governor Bank Indonesia, Pery Warjiyo conveyed the appreciation for the broad support from G20 members, invitees, and international organizations. Sri Mulyani stated “we have been able to make progress in building bridges towards each other until today and for the next so as to tackle the challenges that we are facing”. On that occasion, Perry Warjiyo also reiterated that despite the challenging circumstances we are facing, the G20 as the premier forum for coordinating global economic issues remain committed to deliver concrete actions to support a strong, sustainable, balanced, and inclusive growth and recovery.”

As G20 Presidency, Indonesia maintains the integrity of G20 in this challenging time by prioritizing open dialogues and by focusing more on concrete actions. The outcome document of this FMCBG meeting is a Chair’s Summary which consists of fourteen paragraphs. Chair’s Summary has been published in our G20 website. This is proof that G20 members are supporting the main agenda of the Indonesian Presidency, “Recover Together, Recover Stronger,” and committing to deliver concrete actions.

On the global economy and risk agenda, the discussion covered two main topics: the current global economic situation and its challenges, including discussion on the impact of the Covid-19 pandemic and war in Ukraine to the global economic prospects, global inflation, as well as food and energy security; and the exit strategies and addressing scarring effect as impact of the pandemic. Many members recognize that the supply and demand imbalance have exacerbated the current challenges due to global supply chain disruptions and rising commodity and energy prices. This condition triggers an increase in inflation, ultimately threatening food security, especially for vulnerable groups. Members reaffirmed commitment to using all available policy tools to address economic challenges to maintain financial stability and long-term fiscal sustainability. To ensure a well calibrated, well planned and well communicated exit strategy and to address scarring effects, the Indonesia Presidency has developed the G20 Presidency Note on Policy Setting for Exit Strategies to Support Recovery and Addressing Scarring Effect to Secure Future Growth.

On the Global Health, all members reaffirm the commitment to prioritizing collective and coordinated action to get the pandemic under control. Members also welcome the establishment of a Financial Intermediary Fund (FIF) for Pandemic Preparedness, Prevention, and Response (PPR). FIF is a concrete action to build a global health architecture in pandemic PPR by ensuring adequate, sustainable, coordinated financing for post-pandemic recovery. Members will continue discussing the FIF’s governance which should include the central coordination role of the WHO, be G20-driven and be inclusive of low- and middle-income countries, additional non-G20 partners; and its operating arrangements, with the goal of launching it in September 2022. Some G20 members have formally announced contribution to the FIF, and other are actively consider contributing. To date, a commitment of approximately USD 1.28 billion has been secured for the FIF for pandemic PPR, which includes contributions from the United States, The European Commission, Germany, Indonesia, Singapore, the United Kingdom, the Wellcome Trust, the Bill and Melinda Gates Foundation. This 3rd FMCBG Meeting received additional contribution pledges from, Italy, China, the United Arab Emirates, Japan, and Korea.

On the G20 commitment to enhance long-term global financial resilience, the G20 will continue to monitor the risks of increased capital flows volatility, negative spillovers, and uneven market conditions by taking into account the completed review of IMF Institutional View (IV) on Liberalization and Capital Flow Management, the continued work on the operationalization of the IMF Integrated Policy Framework, and BIS Macro-Financial Stability Framework. The G20 is also committed to continuing discussions on the macro-financial implications of Central Bank Digital Currencies (CBDCs) as these may be designed to facilitate cross-border payments while preserving the stability of the international monetary and financial system. A joint initiative between the Indonesia G20 Presidency with the BIS Innovation Hub through TechSprint 2022 aims contribute to the debate on practical and feasible solutions to implement CBDCs.

On Sustainable Finance topic, members underlined the critical role of sustainable finance for a green, resilient and inclusive global economic recovery and the achievement of the 2030 Agenda for Sustainable Development and the Paris Agreement goals. Members commend on the G20 Sustainable Finance Roadmap progress; Developing framework for transition finance and improving the credibility of financial institution commitments; scaling-up sustainable finance instruments, with a focus on improving accessibility and affordability; and discussed policy levers that incentivize financing and investment that support the transition.  In line with the agenda, on 14 July also marks a milestone for Indonesia where  launched the Indonesian Energy Transition Mechanism (ETM) Country Platform. The ETM is an ambitious plan that enables the upgrade of Indonesia’s energy infrastructure and accelerates the clean energy transition toward net-zero emissions in a just and affordable manner.

On the topic of Infrastructure, members reaffirm their commitment to revitalizing infrastructure investment in a sustainable, inclusive, accessible, and affordable way. Members also welcome progress in developing a framework to best leverage private sector participation to scale-up sustainable infrastructure investment, which will complement investment from other sources, including public investment and finance provided by MDBs, and in developing a policy toolkit to mobilize financing mechanisms to enhance infrastructure investment in cities and regions. The members also endorse the G20 blueprint for scaling up Infratech financing and welcoming the development of the Global Infrastructure Hub for the long-term future.

The Presidency thank members for their ongoing commitment to implement the historic agreement on the G20/OECD two-pillar international tax package. Members support the ongoing work on Pillar One and welcome the completion of Pillar Two Global Anti-Base Erosion (GloBE) Model Rules, which pave the way for consistent implementation at a global level as a common approach, and  look forward to the completion of the GloBE Implementation Framework. Members call on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to finalize Pillar One, including by signing the Multilateral Convention in the first half of 2023, and call on the Inclusive Framework to complete the negotiations that would allow the development of the Multilateral Instrument for implementation of the Subject to Tax Rules (STTR) under Pillar Two.  Members also reaffirm the objective to strengthen the tax and development agenda in light of the G20 Ministerial Symposium on Tax and Development, and  note the forthcoming new G20/OECD Roadmap for Developing Countries and International Tax. Members support the progress made on implementing internationally agreed tax transparency standards, including regional efforts and welcome the signing of the Asia Initiative Bali Declaration.

Members reiterated the  commitment to strengthening the long-term financial resilience of the international financial architectureincluding strengthening financial resilience and the global financial safety net; mobilizing the Special Drawing Rights (SDR), to date USD 73 billion has been pledges; stepping up the effort to address debt vulnerabilities, On June 16, the Creditor committee for Zambia has been establish and had its first meeting; and continue to work collaboratively with the Multilateral Development Banks (MDBs) to support vulnerable countries to navigate the aforementioned global economic challenges, to pursue sustainable economic and social development, and to support financing global public goods.

On financial sector issues, Members discussed the COVID-19 exit strategies to support equitable recovery for financial stability and scarring effects. It also discussed efforts to address vulnerabilities in the Non-Bank Financial Institutions (NBFI), the climate-related financial risks; crypto assets; financial inclusion and digitalisation; and new data gaps initiatives. Members  support taking forward  to reinforce global financial system resilience and asked the Financial Stability Board (FSB) to intensify its monitoring. G20 Finance Ministers and Central Bank Governors commit to sustaining global financial stability, including through continued coordination of policy measures and implementation of international standards. Members welcome the FSB’s Interim Report on financial sector exit strategies and scarring effects of COVID-19 and looks forward to the final report’s policy considerations prior to the Leaders’ Summit in November.

The G20 continues deliberation on payment system in the digital era to achieve faster, cheaper, more transparent and more inclusive cross-border payments as this would deliver widespread benefits for economies worldwide. G20 Roadmap for enhancing cross-border payments for faster, cheaper, safe, and inclusive cross border payments. As a showcase of a regional implementation of the G20 Roadmap for Enhancing Cross Border Payment Roadmap, ASEAN-5 central banks will sign a General Agreement on Payment Connectivity among ASEAN-5 Central Banks in November 2022

The Indonesian G20 Presidency has also organized a series of  side events – back to back with the G20 meetings – reflecting the Indonesian Presidency theme ‘Recover Together, Recover Stronger’. The G20 High-Level Seminar on Strengthening Global Collaboration for Tackling Food Insecurity collaboration with Saudi Arabia aimed at addressing the current food and its related challenges, as well as potential global collaboration. Under the topic, Presidency expect to understand the perspectives and to gather up-to-date data on the current situation to identify data-driven solutions. It also needs to explore solutions to alleviate market shortages, support agriculture trade and fertilizer market as well as proposals on how global collaboration could be strengthened to address food insecurity and its related issues. In the High-Level Seminar on Macroeconomic Policy Mix for Stability and Economic Recovery engaged members to discuss the importance of macroeconomic policy mix. Besides that, members also discuss coordination between policymakers from monetary, fiscal, and real sector policies that play a crucial role in economic recovery. Indonesian G20 Presidency also held the 2022 G20 Infrastructure Investor Dialogue, Asia Initiative Bali Declaration, and other side events. The discussions in all of the side events provide enrichment and new perspectives to the discussions we have had in the room over the past two days. Presidency thank all Ministers and Governors who shared their thoughts and views in these side events.

Indonesia G20 Presidency  reiterate that  G20 have to send a clear message to the international community that the G20 has a strong commitment to actions. This means that, at the G20, all members need to ensure that G20 have concrete deliverables to respond to current global challenges. Through concrete initiatives, the world will soon recover and rise stronger. Recover Together, Recover Stronger

G20 Finance Ministers and Central Bank Governors Meeting High-Level Breakfast Discussion on Climate Mitigation

Nusa Dua, 16 July 2022 – Indonesia’s Ministry of Finance and the Governor of the Central Bank of Indonesia have recently held a High-Level Breakfast Discussion on Climate Mitigation—as a part of The Third Series of G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting Activities, 11-17 July 2022 in Bali. This meeting was conducted in a hybrid format and attended by all G20 members, as well as international organizations, such as International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD) and Intergovernmental Panel on Climate Change (IPCC).

The High-Level Breakfast Discussion on Climate Mitigation is built on the technical discussion that takes place in the Policy Levers Forum convened by the Indonesian G20 Presidency at the margins of the Sustainable Finance Working Group meeting on 13 June 2022. The discussion allowed Ministers and Governors to share best practices, national experiences, and an overview of international efforts to address climate change.

Minister Sri Mulyani opened the Discussion by sharing the key takeaways from the Sustainable Finance Working Group Policy Levers Forum of 13 June, 2022. She pointed out to policy directions to foster the transition towards sustainable investments and to disincentivize the reliance on high-emitting activities. The OECD presented the main takeaways of its ongoing research on climate mitigation, including the macroeconomic, environmental, and fiscal effects of the coordination mechanism. They were joined by representatives from the International Panel on Climate Change (IPCC) and the International Monetary Fund (IMF).

Additionally, a high-level exchange of national experiences allowed participants to present their ongoing/planned policies to address climate change and preserve financial stability and economic growth in the long-term. In particular, the exchanges focused on climate-related policy levers -including the design of tailored policy mixes and energy transition mechanisms (e.g., Just Transition Partnerships) to promote an inclusive green economy transition. For instance, the G20 Sustainable Finance Roadmap endorsed by G20 Leaders in October 2021 highlights the role of public policy levers to provide better market signals, steer sustainable investment decisions and incentivize the participation of public and private capital in sustainable investments.

Levers of a just transition that enhances climate mitigation can be mechanisms to support the provision of clean energy, schemes to rationalize and phase out inefficient subsidies for fossil fuels that encourage wasteful consumption or the use of carbon pricing to reduce greenhouse gas emissions (GHG). To achieve carbon neutrality by or around mid-century and implement the Paris Agreement, policy-makers can also resort to regulatory approaches that better catalyse market commitments towards carbon emissions reduction. This goes along the achievement of the 2030 Agenda, with targeted support for the poorest and the most vulnerable, in accordance to each country’s circumstances.

The discussions of the High-level Breakfast Discussion on Climate Mitigation shall nurture future G20 discussions on international climate action, in particular strengthen synergies with global initiatives such as the Coalition of Finance Ministers for Climate Action or the Climate Club.

Welcoming Remarks of the Minister of Finance Republic of Indonesia for the 3rd FMCBG in Bali

I’d like to express my gratitude For all your active participation during our meeting as well as during our very difficult but sometimes it’s very fruitful consultation and communication with you all.

I really appreciate for all countries International Organization the G20 members as well as all invitees you are all conveying a very encouraging message to us that is you strongly support Indonesia G20 presidency.

And this is really a very good asset for us to continue maintaining and leading as well as navigating managing this very very challenging year for us as a G20 presidency.

When will the last meet in April, it was very challenging circumstances.  And today we are meeting with the challenging circumstances which even more deepen.

So this is something that I do understand that all of you, all of us here, we are all facing a very difficult situation to manage as a finance ministers as well as Central Bank governor. 

We are witnessing and alarming increase in food security as the impact of the war in Ukraine and sanctions as well as export restriction which are examples of exacerbating the effect of the covid19 pandemic.

This all has driven food prices to new record level we are likely to see this challenges to be close to the global economy that will  persist  and we need to address this issue how to avoid the food price that keep in even increasing.

With the increasing food price this could put a million more people into a state of food insecurity. according to the world food program,  The number of people facing acute food insecurity has more than doubled since 2019 before Pandemic from 135 million to 276 million.

it is an urgency with which the food crisis should be addressed. the deployment of all available financing mechanism is immediately needed to save lives and strengthen financial and social stability.

Moreover, good macroeconomic policy has also become fundamentally important that have how many country whether the crisis.

Another very important commodity which creating also a huge challenge to all of us, is the energy.  The global energy landscape has been radically change or Escape. Energy commodity prices are skyrocketing. 

I’m sure all of you as a finance ministers as well as Central Bank Governor has seen this as a threat to our macroeconomic stability as well as a conducive environment for us to maintain recovery.

The World Bank estimates that crude oil prices increased by 350% from April 2020 to April 2022.  I think we all remember the beginning of the pandemic in April, that are two days in which all prices actually zero or even slightly negative and now we are facing such a very different extreme situation.

The 350% increase is the largest increase for any two year period Since 1970s.  In June, we witness the price of natural gas in Europe increased by 60% in just two weeks. Fuel shortages are unfolding around the world.

And we are seeing this is having a huge political and social implication, in Sri Lanka, Ghana, Peru, Ecuador and elsewhere. This shortages is due to the high gas prices  is really really an issue that is threatening our recovery. The world is in the middle of energy crisis.

The war as well as commodity price increase could worsen the global inflation Spike and increase further social instability. we could see further deterioration in living standard, particularly poor and vulnerable households.

Low-income commodity importing countries are likely to be particularly affected, which could lead to further social and political unrest.  We have already seen the surge in inflation leading to faster than anticipated Global monetary policy tightening.

In which many of advanced country especially those of you sitting around this table, as well as emerging economies are already increasing, elevating, the interest rate significantly. Given tighten Global monetary policy as well as a company’s by liquidity condition emerging countries will need to be increasingly vigilant.

We just going to create Foreigner ability coming from capital outflow and increase in the cost of financing.

So the triple threat of War, surging commodity prices and increased Global inflation,  that can also increase and creating a real spill over to debt not only for the low-income countries but also in the middle-income countries are even advanced economy we are starting before Pandemic and then because of panda me as already using our fiscal space that have the implication of increasing deposition.

And now with this triple threat, this is going to be even more a very dire complex to be manage.

Around 60% of low-income countries are already in or near debt distress,  while there is developing countries may be unable to meet that payment over the next year.

So this is not only just one, two exceptional cases this is becoming a widespread. This is becoming the issue that Finance Minister and Central Bank Governor together with International Organization multilateral institution need to be concerned.

This significant challenges are on top of the existing unsolved Global problem, as what we are all discussing in the past two year.  That is the covid19 pandemic, climate change, and climate mitigation and adaptation, and also the existing debt sustainability many low-income countries.  These are all creating a significant  hurdle to our shared goal, which is Indonesia presidency was chosen at that time when we continuing this presidency from the Italy, that is we want to see 2022 to recover together recover stronger.

So we the G20 forum come together again that stood with this very critical and complex situation.  We are facing another critical time for global economy.  That’s why the expectation and the hope for this group of country is even higher.

Why we coming together is important we also have to work together to determine how our challenges are to be address 

During our presidency I have to express really high appreciation personally to all of you as well as as a country who preside this G20 view on our bilateral consultation and communication, to continue supporting Indonesia presidency and our agenda.

This is really a good hope a strong hope for all of us to be able to continue to take  action and also demonstrate the spirit of cooperation collaboration and  to share as we are capable of this.Like in  2008-2009 when the global economy was in danger of collapse from Global financial crisis the G20 took action to ensure Global Financial stability.

In 2020 and 2021 when covid-19 swap the world, the G20 again Rose to the challenge deliver action for vulnerable countries facing debt issues ensuring vaccinations would wipe and committing extra-ordinary policy support for our most vulnerable people and small businesses.

It was not easy,  this is not an easy time given our diverse membership of the G20 and also the difference and the differences in our position, used as well as experience has on many important issues.

but this differences is also our strength,  we represent the most systemically important countries to the global economy,  and the action will have a very important effect to the news to All Nations around the world.

So I’m sure you are all aware that the world is watching us closely. There a high expectation for this forum, for this meeting, especially because this is the Finance Minister and Central Bank governor that we are  hoping that we can discuss and talk more on the less political but real technical issue which is better for all of us.

We need to act together to demonstrate why G20 deserves its reputation as the premier forum for international cooperation.  As we reached the halfway point of our Indonesia G20 presidency, and despite all our different position we have been able to make that tangible progress on some critical issue. And that’s I really appreciate it one to expres my appreciation and thank you to all of you who support Indonesia presidency.

Within our G20 presidency we actually continue deliver despite this challenging environment. we see our role to be an honest broker, we aim to build Bridges, Indonesia will continue to relentlessly discussing,  reaching out communicating, Consulting, seeking your advice so that we will continue Building Bridges and we’re not building walls.

Because we firmly believe that the world is even more and more desperately need more and more bridges and connection not wall and War.

We need to strengthen the spirit of multilateralism,  need to also build safety net for our for our future cooperation and also continued strengthening our commitment to the shared Global prosperity. We are  acutely aware that the cause of our failure to work together is more than we can afford.

The humanitarian consequences for the world and especially for many low-income countries would be catastrophic. We have taken positive steps toward action.  During our meeting in April we agreed that we must adapt our agenda to ensure macroeconomic and financial stability is maintained.

We have committed to text from Collective action and use all available tools to address the current economic and financial challenges we are facing.  Since then, we have been significant progress in several areas. we have agreed of our FIF fund, which is for pandemiq prevention preparedness and response, which is hosted at the World Bank and within his initial commitment of 1.1 billion US dollar already secured.

 I know many of you in our bilateral meeting stating that you are also expressing this support the FIF and also considering or deciding to contribute. So,  I appreciate that decision and we do hope to see more and more of you is going to join this FIF.

We have developed a G20 presidency note on policy setting for exit strategy to support recovery and addressing scarring effect to secure future growth.

A resilient and sustainability trust has been established under the IMF, and thank you Kristalina for your strong leadership, and also passion to assist low-income and debt distress country to build resilience to external shock such as climate change and pandemic,  and now even with food and energy crisis.

We have seen the first meeting of the creditors committee to discuss debt relief for Zambia, and the prospect of progress in other countries with similar needs.

We have seen progress in addressing the action identify in the G20 sustainable Finance roadmap, including developing a transition framework, and ways to enhance the accessibility and an affordability of sustainable Finance.

We have discussed a number of case studies of transition activity or initiative to achieve just and affordable transition. Such as energy transition mechanism,  involving collaboration among countries, and the private sector and philanthropist.

We have made progress in developing ways to leverage private sector participation in sustainable infrastructure investment and mobilize financing to cities and region. We have made progress on the framework for digital Financial inclusion, especially to increase Financial access for undeserved group especially women, youth, and small medium enterprises.

Despite all those concrete progress and achievements, the G20 has been criticized for failing to deliver action. I think many of you now has been interviewed by CNBC, Bloomberg, and they’re asking whether we are going to be able to deliver action.

So it is clear that we must step up our efforts and do more this is despite all those achievement and progress. We need to collectively find ways to contribute to build Bridges between each other and also to recapture the spirit of the G20 to deliver more action.

I really appreciate a lot of support, especially from the previous presidency Italy and the next presidency India, that you both continue to communicate, even I get a lot of advice from the previous presidency that is Saudi.

So thank you so much for both personal as well as institutional support to all of us, which is facing is very complex task. We still need to show the world that we deserve to keep our reputation as the premier economic forum for international Cooperation.

This is should be done through addressing the current crisis that we are facing and working to prevent any further crisis.  And the best way to show the world is by sharing with them and update from us and also our discussion and also our action.

I’m sure that your deputies and have brief you on where this process is up to and the format of  our update is still being discussed with you all.  But I really wanted to take this opportunity to assure you Our intention to get the result that can be communicated clearly to all outside stakeholder.

Given the circumstances we are facing we are trying to find the best solution for the format of the update that we will share. We can promise you that we are not trying to circumvent any processes.  We continue communicate reach out with you are indiscriminately, all of you, I really appreciate the work from our deputies, and I also appreciate many of you which is responding positively.

We are flexibly trying to find the best solution for the situation in our consultation with all members as a group we are in this situation together.

 There is no “play book”, it means that we must be creative in finding solution and it is really that we are inviting you here in Bali.

Bali is an island in which so many artists everything can be touched to become beautiful weather this is ceramide, whether we are talking about bamboo, you can see all of her places that everything is always in a very artistic because of the artist  here in Bali.

So, I do hope that many of you by being here or even if you are in distant or virtually participating, you are going to get a little bit sprinkle of this Magic Artist so that we are going to make situation better and better.

It is likely that we are all need to update where we end up in sharing the document from this presidency.  While it is true that our ultimate presidency decision on what need to be included in the document,  we are all very much want to have all members support to this document,  in which we can share what we cover in our discussion what we’ve already achieve and what is the future of our Focus.

Our to do list over the next two days is not a small task we will focus not only on the emerging issue facing the global economy but also aim to progress on all our agenda to support global economy and also achieving strong sustainable inclusive and balanced growth.

We have set combination of seven important agenda to achieve that goal we will discuss the current Global situation and its risk and how to address the key Global issues this include how we provide greater energy and ensure food security and sustainability.

We will reiterate  our commitment to deal with the Covid19 and ensure we are better prepared for the next pandemic.  We must continue to assist vulnerable countries manage the debt and to close the financing Gap they are facing.

we need to improve  productivity and strengthen Financial stability and regulation while improving Financial inclusion for financial the vulnerable and undeserved groups. 

On a global tax agenda, we will  discussed how to make progress on more stable and fair International tax architecture.

On climate, we must increase sustainable financing to achieve our climate goals,  we also discuss how to revitalize infrastructure investment as well as as many other important areas of action.

So coming together here today, its really a big step forward in working through our differences  in position and in Building Bridges toward each other. I hope I can count on you all to find ways that we can maintain the G20 strong track record and working collaboratively collaboratively to deal with this Global crisis.

This means that when our meeting ends tomorrow we will have been able to find a way to reach consensus on what we can do together.  With the spirit of cooperation and collaboration how to safeguard the global economy it is not exaggerating to say that millions and millions, if not even billions of people are depending on us.

So we must show the work that the G20 deserves its reputation. Thank you so much, let us continue to our first session.

Finance Minister of Indonesia and Republic of Korea Agree to Boost Investment and Industry Collaboration

Nusa Dua, 15 July 2022 – To close the first day of the 3rd Finance Ministers and Central Bank Governors Meeting (FMCBG), the Minister of Finance of Indonesia held a physical bilateral meeting with Mr. Choo Kyung-ho, Deputy Prime Minister of the Republic of Korea (Korea), on July 15, 2022. This is the first meeting between the two sides after Choo was appointed as Deputy Prime Minister and Minister of Finance of Korea on May 11, 2022.

During the meeting, Choo appreciated Indonesia’s leadership as the G20 Presidency in maintaining the G20’s integrity amid unresolved political tensions. Choo also praised the Indonesian Presidency for several achievements of the Finance Track agenda. One of which is the establishment of a Financial Intermediary Fund (FIF). Deputy Choo also added the importance of collaboration with spirit of multilateralism in tackling various global risks that haunt the world.

The Minister of Finance thanked Korea for its support for the Indonesian Presidency. The Minister of Finance also congratulated the new Korean government and believed this could open many opportunities for stronger bilateral cooperation. “Not only business-to-business, Indonesia and Korea also have close people-to-people relations. One of them is through K-pop culture which is very popular in Indonesia, thus Korea has a positive image in the eyes of the Indonesian,” added the Minister of Finance.

Choo added that many Korean business people are interested in collaborating in the automotive, steel, and chemical industries. The Minister of Finance welcomed South Korea’s interest and added that the planned transformation of the energy sector and cleaner manufacturing (green energy and green industry) would widen opportunities for collaboration in these fields. “The potential for economic cooperation is still wide open, for example, Indonesia is currently carrying out a green energy transformation which also provides great opportunities for South Korean companies,” explained the Minister of Finance.

High Level Seminar on Strengthening Global Collaboration for Tackling Food Insecurity

Nusa Dua, 15 July 2022 – Indonesia G20 Presidency in collaboration with the Government of the Kingdom of Saudi Arabia jointly held a High-Level Seminar on Strengthening Global Collaboration for Tackling Food Insecurity – as a part of the Third Series of G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting Activities 11-17 July 2022 in Bali. This meeting brought together the Finance Ministers of some G20 members and leaders from international organisations. The meeting aimed at addressing the mounting food security crisis and related challenges as well as potential global collaboration to address these challenges.

The issue of food security was featured in G20 discussions in previous years, but according to the World Food Program (WFP), the number of people facing acute food insecurity has more than doubled since 2019 and the COVID-19 pandemic outbreak, from 135 million to 345 million. The war in Ukraine and the worsening export restrictions exacerbate the effects of the COVID-19 pandemic, which resulted in supply-demand mismatches and supply disruptions, which driven food prices to record levels. World food prices jumped nearly 13% in March to a new record high and will likely rise even further, potentially up to 20% towards the end of 2022. The challenges to the global economy are likely to persist, keeping food prices high for the foreseeable future. The high-level discussion meant to consolidate the creation of a system of collaboration and cooperation among international initiatives and organizations programs on food security and related issues, under the Indonesia’s G20 Presidency.

Minister Sri Mulyani opened the seminar by emphasizing the need to take urgent, collaborative action to tackle food insecurity, in light of multiple challenges. “There is an urgency with which the food crisis should be addressed. The deployment of all available financing mechanisms is immediately needed to save lives and strengthen financial and social stability, particularly in low-income and developing countries. We must ensure there is a system of collaboration and cooperation to address immediate and long-term food insecurity and related economic and environmental sustainability issues,” stated Minister Sri Mulyani on her opening.

The seminar included two sessions that were attended by Minsters from Brazil, India, Indonesia, Italy, Senegal, and United States, as well as high level officers from World Trade Organisations, Food and Agricultural Organisation, IFAD, IMF, World Bank, and United Nations.

The first session covered the topic “Ensuring Food Security and Ending Hunger”. It brought up the latest perspectives on the alarming risk to the global food security and try to address the food insecurity in short term and design a more long-term sustainable program. The second session about “Global Collaboration: The Way Forward” explored ways to alleviate market shortages, support agriculture trade and fertilizer markets and improve global collaboration to tackle the food insecurity and its related issues.

Minister Sri Mulyani dan Treasurer Yellen Discussed Environment, Food, and Energy-related Issues to Achieve World Recovery Together

Nusa Dua, 15 July 2022 – On the sidelines of the first day of the Third Meeting of the Ministers of Finance and Bank Governors G20 (3rd Finance Ministers and Central Bank Governors/FMCBG), Indonesian Minister of Finance, Sri Mulyani held a physical bilateral meeting with Ms. Janet Yellen, Secretary of the Treasury of the United States (US). This meeting is the first physical meeting between the two ministers after the Spring Meetings IMF-World Bank 22 April.

The two parties started the meeting by discussing energy and environmental issues, as well as the policies of their respective countries regarding these issues. Minister of Finance Sri Mulyani emphasized the importance of concrete and technical steps, not limited to the conceptual realm, to support the implementation of shifting power plants to environmentally friendly energy sources, which require significant financing. One of them is the Energy Transition Mechanism (ETM) policy which has been initiated and launched by Indonesia and the Asian Development Bank (ADB).

Minister Sri Mulyani and Treasurer Yellen agreed to underline that the consequences of geopolitical issues that have not been de-escalated are the root cause of the ongoing food and energy crisis. Conflicts in Ukraine are one of the triggers for the soaring world energy prices and challenges to the global economy. To overcome this issue, various policy options need to be discussed, thus world’s petroleum supply can return to its original level before the conflict. Minister Sri Mulyani responded, “there is a need to accelerate the food and energy crisis as everyone has the right to access affordable food and energy.” Minister Sri Mulyani will discuss United States’ proposal with relevant ministers related to the energy sector. Minister Sri Mulyani also highlighted that the 3rd FMCBG result will be well-communicated to global citizens. This is aligned with Indonesia’s G20 Presidency to continue working harder and contribute to tackling main global issues. This will also provide clear evidence of how significant and relevant Indonesia’s G20 Presidency role to achieve global economic recovery together, in line with the Indonesian G20 Presidency “Recover Together, Recover Stronger”.

G20 Infrastructure Investors Dialogue Encourages Private Participation in Fulfilling the Sustainable Development Financing Gap

From left to right : Secretary General of D20 Long-Term Investors Club Enrico Petroceli, Dirjen PPR Kemenkeu LLuky Alfirman, Menkeu Sri Mulyani Indrawati, Sekjen OECD Mathias Cormann, ceo global infrastructure

Nusa Dua, 15 July 2022 – Sustainable Infrastructure Investment is one of the main agendas of the Indonesian Presidency at G20 in 2022, especially in the infrastructure sector (Infrastructure Working Group/IWG). The agenda is aligned with Indonesia’s priority in G20 2022 towards sustainable, inclusive, and resilient recovery to embody “Recover Together, Recover Stronger”. Sustainable Infrastructure Investment is the primary key to sustainable development and growth after the COVID-19 pandemic. Limited fiscal capacity, especially in developing countries, is a major challenge in meeting the gap in sustainable infrastructure needs.


The Investors Dialogue aims to hear the private sector’s perspectives on the expected role of G20 countries through various global initiatives in supporting sustainable infrastructure development. The dialogue, which was divided into three discussion sessions, focused on: (i) investors’ perspectives on how to drive G20’s effort in providing investment opportunities in sustainable infrastructure, as well as elaborate on the risks and challenges of infrastructure investment; ii) developing countries and regional (sub-national) perspectives on what G20 countries can do to create sustainable infrastructure projects that are more bankable for developing countries and local (sub-national) governments, particularly in regards to Environmental, Social, and Governance (ESG); and iii) requesting inputs from speakers and investors on the draft G20 Framework on Sustainable Infrastructure which is currently being prepared by GI Hub as one of the IWG deliverables.


The role of the private sector and global investors is highly important in filling the gap in sustainable infrastructure financing, but this is faced with various risks and challenges in investing. To bridge this issue, the Indonesian Presidency collaborated with the Organization for Economic Cooperation and Development (OECD), the D20 Long-Term Investors Club (D20-LTIC), and the Global Infrastructure Hub (GIH) to hold the G20 Infrastructure Investor Dialogue. With the theme “Leveraging Private Sector Participation in Sustainable Infrastructure Investment”, was held hybrid on 15 July 2022 in Nusa Dua, Bali. This event is part of a series of side events from the agenda of the Third Meeting of the Minister of Finance and Governor of Bank Indonesia (3rd FMCBG).


Indonesia, Italy, and India’s Finance Ministers, the Governor of Bank Indonesia, the Minister of Finance of Saudi Arabia, and the Secretary General of the OECD attended the event to deliver remarks. In addition to being attended by G20 member countries, various international organizations, financial institutions, and the private sector were also invited to take part in a dialogue session with speakers from representatives of financial institutions and the private sector, including D20 LTIC, European Investment Bank (EIB), Clifford Capital Singapore, Saudi Industrial Development Fund (SIDF), CDG Development Morroco, KfW, Long-term Infrastructure Investors Association, and Global Infrastructure Basel Foundation. The CEO of the Indonesia Investment Authority (INA) and the President Director of PT Sarana Multi Infrastruktur (SMI) also spoke to share perspectives on sustainable infrastructure investment in Indonesia.


During her closing remarks, Indonesia’s Finance Minister shared Indonesia’ G20 Presidency’s commitment, which is to form a continuation of sustainable infrastructure investment, as a part of G20’s effort to continue the 2021 Sustainable Finance Roadmap, as well as developing infrastructure as an asset class. “In 2022, FMCBG has agreed to develop a framework to drive the private sector’s participation to increase sustainable infrastructure investment. This framework aims to increase the effect, scale, affordability, and speed of infrastructure investment, at the same time ensuring an orderly and fair transition. For us to go in the right direction, ongoing dialogue with the private sector on this issue must be maintained.” added the Minister of Finance.

The result of this dialogue is expected to become an input in finishing deliverables on sustainable infrastructure investment agendas and send positive signals to investors to foster trust and mobilize private sector investment to sustainable infrastructure.