G20 Bali Summit Without Putin-Zelensky, What Are the Big Issues and Benefits for Indonesia?

Contradanyc.com – G20 Bali Summit Without the main stars, Vladimir Putin and Volodymyr Zelensky, the G20 Bali Summit will be held on November 15-16, 2022. The absence of the President of Russia and the President of Ukraine who are at war, is believed to not affect the success of the G20 Bali Summit.

The Indonesian government, to date, has received confirmation of the direct presence of 17 G20 leaders at the summit. The total attendance of leaders, including Indonesian President Joko Widodo, was 36 people out of a total of 41 participants, according to the Indonesian Ministry of Foreign Affairs (Kemlu).

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On the part of the G20 countries, Brazil and Mexico have informed their Presidents that they cannot attend. Mexico will be represented by its Foreign Minister, while Brazil is still communicating about the planned form of virtual participation of President Jair Bolsonaro.

On November 8, 2022, the Indonesian Ministry of Foreign Affairs received a diplomatic note from the Russian Embassy in Jakarta stating that Vladimir Putin could not be present in Bali (in person). Meanwhile, from the invitation side, the Government of Fiji, which is currently undergoing general elections, will send a special envoy, and Volodymyr Zelensky will also participate only virtually.

According to the Indonesian Ministry of Foreign Affairs, the presence of 18 G20 leaders — including Indonesia — plus 8 of the 10 invited countries and leaders of 10 International Organizations, is a very high level of attendance and reflects a shared commitment to ensure the G20 remains effective in the midst of the current very difficult situation.

“I think in a normal position it’s usually 17-18 (people). This is an abnormal position, the world is very difficult, all countries are very difficult. If there are up to that number, I think it’s very good,” said Jokowi, quoted Friday (11/01). 10/2022).

In line with Jokowi, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia would become the world’s attention in organizing the G20 Summit in Bali. This is inseparable from the performance of Indonesia’s economic growth which has consistently increased.

“In terms of recognition, Indonesia will become the world’s attention. We will also hold the chairmanship of ASEAN. So this will certainly make Indonesia even more reckoned with,” said Coordinating Minister Airlangga in a written statement.

Optimism was also expressed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who said that the mandate of the G20 Presidency would strengthen Indonesia’s influence at the global level.

“In my view, the handover of the G20 host to Indonesia implies that we are increasing global recognition, influence and power. They (other G20 member countries) are also waiting to increase our role at the regional and global levels,” he said.

Luhut testified that world leaders have increasingly recognized Indonesia’s position, especially after successfully controlling the spread of the Covid-19 pandemic which is rife in various countries.

“It will boost our nation’s confidence that we can handle such complex problems through discipline and collaboration. There is nothing that we can’t solve together,” he said.

International relations expert and founder of Synergy Policies, Dinna Prapto Raharja, said that Putin and Zelensky’s absence from the G20 summit showed that they were not ready to be present at the peace negotiating table.

In fact, if Putin and Zelensky were present, they could help find a solution for the turbulent global economy due to the military approach and sanctions. US President Joe Biden, European Commission President Ursula von der Leyen and Chinese President Xi Jinping will also attend.

“If Putin and Zelensky come, we should be able to raise the issue, moreover Biden and the European Union countries will attend. But because they are not present, it is most likely because neither Putin nor Zelensky are ready to enter the negotiating table,” said Dinna Prapto. Raharja to Liputan6.com, Friday (11/11/2022).

The fact that the presidents of Russia and Ukraine were not present means that a military approach is still an option between the two countries. As a result, the war in Europe will be a homework for the next G20 host.

“Still feel that there is a military solution to the problems between them, so what can be discussed at the G20 summit is more about what agendas still need to be brought back to the G20 2023 forum when India holds the Presidency,” explained Dinna.

Gadjah Mada University (UGM) international relations expert Nur Rachmat Yuliantoro admitted that the presence of Vladimir Putin made the G20 Bali Summit less than optimal. However, he considers that Putin’s decision can be seen from a positive side as well.

“Putin’s absence makes the G20 Summit seem less than optimal. However, maybe this is the best thing so that the event runs smoothly, considering that many leaders of other countries threaten that they will not attend if Putin comes,” Nur Rachmat told Liputan6.com.

According to Economic Observer from the Indonesia Strategic and Economics Action Institution Ronny P Sasmita, Putin’s absence from Russia actually does not have much effect, as long as the agreements discussed do not involve crucial matters.

“If there is an agreement in crucial areas, of course there will be benefits for Indonesia. For example, if there is an agreement on securing the food supply chain, even though there is a war, it will certainly be very good for Indonesia,” said Ronny to Liputan6.com.

Then, he continued, if there is an agreement on the acceleration of renewable energy, it will certainly be good for Indonesia’s nickel commodity. Because nickel is an important part of making electric car batteries, and much more.

Even before there was an agreement, Indonesia had enjoyed the benefits of this G20 summit. Global trust is getting better, the government’s reputation is getting better, and there are direct benefits felt in Bali and in the national tourism sector of course.

Read more: Before Leading G20, Jokowi Will Attend ASEAN Summit in Cambodia

Big Deal Leaks at G20 Summit

Big Deal Leaks at G20 Summit

Ahead of the G20 summit, a number of developed countries, including the United States and Japan, will reportedly offer financial assistance of at least US$ 15 billion or around Rp 232.1 trillion to help Indonesia transform its coal-dominated power grid.

Reported by Bloomberg, Coordinating Minister for Maritime Affairs and Investment Marves Luhut Binsar Panjaitan confirmed the details of the agreement on the Just Energy Transition Partnership (JETP) funding program, which will be announced soon on Tuesday, November 15 during the G20 Bali Summit.

The Just Energy Transition Partnership agreement, which runs for a year of negotiations, will be announced after talks between US President Joe Biden and President Jokowi.

The agreement will allow Indonesia to accelerate efforts to reduce coal-fired power generation, as well as limit the pipeline of coal-fired power projects, factors currently hampering renewable energy development.

Not only Coordinating Minister Luhut, Indonesian Finance Minister Sri Mulyani Indrawati also hinted that the JETP financing agreement would be announced next week. “I hope the numbers will be large enough to create confidence in terms of delivering an energy transition,” he said, on the sidelines of the Bloomberg CEO Forum in Bali.

Meanwhile, a spokesman for the US Treasury Department declined to comment on the news of the completion of the JETP deal, as well as the Japanese Ministry of Foreign Affairs and representatives from the Ministry of Finance who did not respond to requests for comment.

In an interview in September 2022, SOE Minister Erick Thohir revealed that Indonesia, which is Southeast Asia’s largest economy, would cost around US$600 billion to stop coal generation.

So far, it is unclear how many existing coal plants PLN will shut down early following the JETP deal, although company executives had previously identified 6.7 gigawatts for a possible cut.

Read more: PBB Nuclear Agency Concerns Security in Ukraine’s Zaporizhzhia

Top Priorities for the G20 Bali Summit

In the G20 Presidency, Indonesia carried the spirit of recovery along with the theme “Recover Together, Recover Stronger”.

This theme was raised by Indonesia considering that the world is still under pressure due to the COVID-19 pandemic, requiring a joint and inclusive effort to find a way out or a solution for world recovery.

For this reason, there are three main priorities for the G20 Summit to be held in Bali on November 15-16, 2022, as quoted from the official website of the Indonesian Ministry of Foreign Affairs (Kemlu):

1. Strengthening the Global Health Architecture

Reflecting on the ongoing pandemic, the global health architecture will be strengthened. Not only to cope with the current pandemic, but also to prepare the world to have better responsiveness and capacity in dealing with other health crises in the future.

2. Digital Transformation

Digital transformation is one of the main solutions in moving the economy during a pandemic, and has become a new source of economic growth. To that end, the Indonesian Presidency will focus on improving digital skills (digital skills) and digital literacy (digital literacy) to ensure digital transformation that is inclusive and enjoyed by all countries.​

3. Energy Transition

In order to ensure a sustainable and green future and address climate change in a real way, the Indonesian Presidency is promoting the energy transition towards new and renewable energy by prioritizing energy security, accessibility and affordability.

 

Two Pillars of Discussion

There are also two discussion pillars in the G20, namely the financial pillar called the Finance Track; the second is the Sherpa Track pillar which addresses non-financial economic and development issues. Each of these pillars has a working group called Working Groups.

In addition to the two tracks above, there are also Engagement Groups, which are 10 community groups from various professional circles, which raise various topics of discussion.

Each Engagement Group group has an important role to play for global recovery, especially through concrete ideas and targeted policy recommendations for G20 leaders.

The G20 Indonesia presidency has scheduled more than 180 series of main activities, including Engagement Groups Meetings, Working Groups Meetings, Deputies/Sherpa Level Meetings, Ministerial Level Meetings, to Heads of State Meetings (KTT) in Bali.

The series of activities of the Indonesian Presidency will be spread in more than 20 cities in Indonesia. The 1st Sherpa Meeting in Jakarta on 7-8 December 2021 will be the inaugural meeting of the Indonesian G20 Presidency.

 

Benefits and Benefits of the G20 Summit for Indonesia

With the various G20 activities throughout the year, there are many strategic benefits of the G20 Presidency. This potential can be measured from the economic aspect, foreign policy, and social development, as reported by the Indonesian Ministry of Foreign Affairs website.

First, it is hoped that the G20 Presidency will have a direct impact on the economy, through increasing the country’s foreign exchange earnings. More than 20 thousand international delegates are expected to attend the meeting which will be held in various regions in Indonesia.

Previous experience in the Presidency of Turkey, Argentina, China, and Japan shows a positive impact on the country. It was recorded that the number of visits by international delegates reached more than 13 thousand. It is also estimated that each G20 Summit generates revenues of more than $100 million or IDR 1.4 trillion to the host country.

Second, in the political field, as Chair of the G20, Indonesia can encourage cooperation and initiate concrete results in the three priority sectors, which are strategic for recovery.

This is a momentum for Indonesia to gain credibility or the world’s trust, in leading the global recovery. In diplomacy and foreign policy, credibility is a very valuable asset.

Third, in the field of sustainable economic and social development. The G20 presidency is a momentum to show that ‘Indonesia is open for business’. There will be various showcases or events showing the progress of Indonesia’s development, and the potential for investment in Indonesia.

It is hoped that this will have the opportunity to create a multiplier effect for the regional economy because it contributes to the tourism sector, accommodation (hospitality), transportation, and the creative economy, as well as local MSMEs.

Researcher Center of Food, Energy, and Sustainable Development Institute for Development of Economics and Finance (Indef) Dhenny Yuartha said the momentum of Indonesia’s G20 Presidency could be a bridge for peace and reduce conflict between Russia and Ukraine so as to facilitate global supply chains. As a result, the increase in global commodity prices such as crude oil can be suppressed.

“If the G20 meeting is aimed at providing a bridge for peace, then it seems that the increase in world oil prices can also be suppressed,” said Dhenny in his statement.

Denny added that the G20 Presidency could also be directed to persuade global oil producing countries that are members of the Organization of the Petroleum Exporting Countries (OPEC) to increase their production.

Another benefit of becoming the G-20 Presidency for Indonesia, according to the Minister of Finance, Sri Mulyani, is that it can generate post-pandemic sustainable infrastructure development.

He conveyed this when he was the main speaker in the Keynote Dialogue session of the Toward G20 Summit Special Event with the theme “Infrastructure Development Through Innovation and Collaborative Financing: Toward Greater Inclusivity and Productivity” which was held at The Convene, Washington DC, United States, on the day Monday and Tuesday, October 10-11, 2022.

 

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