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):

DWG 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

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