BULETIN TEKSTIL.COM/Jakarta -The G20 Summit will be held in Bali, Indonesia. The series of meetings have started from December 1, 2021 to November 15-16, 2022.
Two priority agendas in the discussion of the G20 Indonesia 2022 Presidency are the Finance Track and the Sherpa Track.
The Finance Track is a discussion of global economic and financial issues. While the Sherpa Track is a discussion related to broader issues such as climate change, trade, food and energy, geopolitics, and other important issues.
The Minister of Foreign Affairs, Retno Lestari Priansari Marsudi, stated that Indonesia was the leader of global resolution actions that prioritized collaboration between countries with a win-win solution paradigm.
She added that the G20 Indonesia 2022 Presidency must support each other in finding solutions to the global crisis and grow stronger and more sustainable.
In BUMN Startup Day, President Joko Widodo admitted that this year until next year (2023) will be tough years and difficult times. All will be difficult to calculate.
Therefore, the President invites all parties to focus on how to encourage economic recovery after the Covid19 pandemic and as a means to lead collaboration between countries through the G20 Indonesia Presidency in 2022.
The Covid-19 pandemic has caused a domino effect for the global economic downturn. This begins with the slowing of the velocity of money around the world which causes the economy of a country to not work properly.
It is proven that more than 90% of countries in the world experience food inflation above 5%.
Commodity prices, especially food and energy, also jumped sharply. The increase in food prices will affect the prices of raw materials at the industrial and market (consumer) levels.
To avoid inflation, affected countries generally raise interest rates in the next few years.
Russian-Ukrainian invasion worsens this condition which resulted in a food security crisis; rising energy prices, restricted trade policies, and supply chain disruptions.
This is because these two countries are the world’s main producers of commodities and energy. Almost all countries in the world depend on Russia’s Fossil Fuels to meet the energy and electricity needs of their respective countries.
Indonesia must be prepared to face the threat of a recession in 2023. The recession will have various direct impacts on several financial sectors such as taxes and investment, including a decline in the quality of life and the economy of the community.
This recession also has an impact on reducing the burden of employee salaries which causes mass layoffs. In such conditions, the number of unemployed will increase due to difficulty in finding work.
During a recession, the global economy is estimated to grow by around 2.8% in 2022 and decline to less than 1% to 0.5% in 2023. Global economic growth in 2023 will certainly have a major impact on the recession that will occur in Indonesia next year.
Meanwhile, the Minister of Finance, Sri Mulyani Indrawati, chaired the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting on October 12-13, 2022 in Washington DC.
This is the last meeting before the G20 Summit on November 15-16 in Bali, Indonesia.
The World Bank predicts that countries in the world will experience a recession in 2023.
At the meeting, Sri Mulyani reminded that the global food crisis will also continue to threaten the world until 2023. Each country must face high inflation, slow economic growth, energy and food insecurity, climate change, and geopolitical fragmentation.
Despite experiencing the impact of the recession, Indonesia has become one of the formidable countries in stabilizing the economy in the midst of the global crisis.
Core Inflation and Indonesia’s economic growth is one of the strongest compared to other countries in Southeast Asia, especially in the Second Quarter of 2022 GDB.
The increase in interest rates in Indonesia as of August 2022 is also only 4.69% (lower). Indonesia will continue to maintain a healthy and sustainable state budget to face the challenges of the global recession.
The Minister hopes that there will be concrete actions to overcome complex global economic problems. This can only be done by a firm commitment from each country to solve global economic problems.
She also hopes that Indonesia can be used as an example for other countries in their economic recovery policy strategies.
Sri Mulyani believes that the Indonesia’s G20 Presidency in 2022 is a new hope that can help the world navigate the wave of crises that have destroyed the economies of almost all countries in the world.