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G20 Presidency Brings Positive Impact on Indonesian Economy

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By: Teuku Rasya )*

The Indonesian economy has been greatly helped along with the implementation of the G20 Summit. In fact, many sectors of the economy have directly received the positive impact, either directly or indirectly.

The implementation of the G20 in 2022 will be held in Indonesia as the host. This, according to the Dean of the Faculty of Economics and Management, Bogor Agricultural University (IPB), Nunung Nuryanto, in fact has had many positive impacts on Indonesia itself.

At least it can be seen from how many side events have spread throughout the country, where the implementation is still carried out during the G20 event, so it does not refer to the peak event in November 2022 only.

Indeed, before the G20 summit was held, many other events followed, the series of which was to bring together Indonesia with delegates from other countries and aim to further strengthen relations between countries. This momentum is very valuable and should not be missed to optimize the provision of benefits to this country.

With so many eyes of the world on Indonesia, it is indeed the best momentum for all stakeholders to be able to take advantage of the prestigious G20 Summit as a forum to be able to further promote Indonesia from various sectors, including products that refer to MSMEs, tourism places in the country. to the culture of this nation which is indeed very diverse.

Moreover, Nunung said, the benefits of the G20 presidency can be felt for the economic sector. The reason is that although the impact of the COVID-19 pandemic has begun to subside, the economic review conflicts that are increasingly coming threaten the economy throughout the country. So that the world is still in the context of a critical situation and even felt by all levels of society.

According to him, in order to defuse various world threats, Indonesia as the G20 Presidency actually has the opportunity to participate in providing the most accurate solution on how to reduce world conflict tensions, or continue to build and generate cooperation and mutual strengthening efforts between countries in the midst of all-consuming conditions. uncertainty as of now.

Furthermore, Nunung Nuryartono hopes that the G20 Summit will allow Indonesia to take a bigger role to commit to jointly defuse tensions that occur in the world, especially with Indonesia’s strategic and geographical position. This should provide a beneficial role for Indonesia. The moment of the G20 Summit should not only be interpreted as a routine meeting or a mere formality, but it is really intended to discuss and complete all discussion materials to bring about a common understanding and achieve a common awakening.

On the other hand, the economic benefits of the G20 were also disclosed by Coordinating Minister for the Economy Airlangga Hartarto who said that at least three benefits from the economic aspect would be obtained by Indonesia when appointed to the G20 Presidency.

First, there is an opportunity to increase domestic consumption which can reach Rp. 1.7 trillion, secondly, to increase GDP which is estimated to reach around Rp. 7.47 trillion. And third, there is the involvement of a workforce of around 33,000 workers in various industrial sectors in the future.

Then, the Minister of Finance, Sri Mulyani also explained that with the election of Indonesia as the leader of the prestigious G20 Summit forum, it is hoped that it will be able to contribute more in supporting the acceleration of domestic economic recovery. It is not impossible, according to him, this can really happen from the cumulative series of meetings that have been held and have brought thousands of delegates from all G20 member countries to various international institutions.

Moreover, the series of G20 2022 Presidency meetings involved 150 events consisting of working groups, engagement groups, sherpas/deputies, ministerial, G20 summits, and side events. Another effect of the G20 Presidency is considered to be twice as large as what was previously achieved at the 2018 IMF-World Bank meeting.

With the presence of the delegates from the G20 member countries, Sri Mulyani stated that it would have the potential to provide benefits for the economy in Indonesia even in various sectors directly, namely the service sector, hotels, transportation, and MSMEs. Then the indirect impact is that it will certainly improve the image of Indonesia so that it will affect the perceptions of investors and also economic actors.

In fact, an Economic Observer at the Nitro Makassar College of Management Sciences (STIM), Dr Rosnaini Daga admitted that the implementation of the G20 Presidency must be able to have a positive impact not only in the economic realm, but for all elements of society.

The G20 has a very strategic role in discussing various global issues that can threaten growth and the economy as well as economic and financial stability. The appointment of Indonesia as the host or the Presidency in the G20 since October 2021 will indeed have a lot of good impacts, even to many sectors, especially the economic sector.

)* The author is a contributor to Persada Institute

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