Indonesia in G20: Strengthen Global Health Architecture, MSMEs, and Women

Indonesian President Joko Widodo (Jokowi) delivered his speech at the G20 Summit session which discussed the global economy and health, in La Nuvola, Rome, Italy, Saturday (10/30/2021).

In his speech, President Joko Widodo invited all countries to strengthen the global health architecture. "In order to build a world that is more resilient to pandemics and various future disturbances, Indonesia invites to strengthen the global health architecture," said President Jokowi as quoted from the Indonesia's Cabinet Secretariat statement.

To make this happen, the President explained, firstly, a mechanism for raising global health resources must be drawn up. This includes funds, vaccines, drugs, medical devices, to health workers who are ready to be deployed at any time to help countries experiencing health crises.

President Joko Widodo talks with the Prime Minister of the Netherlands and the President of the Republic of Korea on the sidelines of the G20 Rome Summit, in Italy, Saturday (30/10/2021). (Photo: BPMI Setpres/Laily Rachev)

Second, President Jokowi assessed that all state leaders who were present at the summit were to formulate standards for global health protocols related to cross-border activities, including travel protocols between countries. 

Third, the G20 must be an important part of the solution to address shortages and vaccines, medicines, and essential health equipment. The President said that the G20 must support the production and transfer of technology to developing countries, remove barriers to trade in vaccine raw materials, support the TRIPS Waiver, and continue to increase dose sharing and support the COVAX Facility. 

"The process of restructuring global health resilience is inclusive, and adheres to the principles of solidarity, justice and fairness," he stressed.

In addition to world health resilience, President Jokowi also encourages G20 leaders for a stronger, more inclusive and sustainable global economic recovery. According to him, the G20 needs to be a catalyst for coordination towards the normalization of economic policies after in the past two years the world has implemented extraordinary policies in the fiscal, monetary and financial sectors. 

The G20 should also be a catalyst for liquidity support and debt restructuring for poor countries. In addition, it is also for reactivation of global connectivity, especially sectors that rely on the movement of people and goods, such as tourism and manufacturing. 

"Cooperation on innovation, digital technology and green technology, as well as increasing investment for inclusive and sustainable growth, and supporting global partnerships for the development of developing countries," he said.

Role of Women and MSMEs

The role of women and micro, small and medium enterprises (MSMEs) for the progress of the nation is a necessity. For Indonesia, MSMEs are the main pillar of the economy. Indonesia has more than 65 million MSME units that contribute to 61 percent of the national economy.

At the same time, 64 percent of Indonesian MSMEs actors are women, so for Indonesia, empowering MSMEs also means empowering women.

MSMEs have also shown quite high resilience in the midst of a pandemic.

For this reason, during a speech at the side event of the G20 Summit which discussed MSMEs and women-owned businesses, the President said that the G20 must continue to encourage the strengthening of the role of MSMEs and women through a number of concrete actions. 

“First, increasing the financial inclusion of MSMEs and women. Financial inclusion is Indonesia's priority. Our financial inclusion index has reached 81 percent and we are targeting to reach 90 percent by 2024," said President Joko Widodo at the event held in La Nuvola, Rome, Italy, Saturday (10/30/2021).

The second real action is to support the economic transformation of MSMEs. According to Jokowi, digitalization is the key. 

E-commerce is one of the drivers of the Indonesian economy during the pandemic with a value that will reach 24.8 billion US dollars this year.

"During the pandemic, 8.4 million Indonesian MSMEs have entered the digital ecosystem, including 54 percent of female MSMEs," he added.

President Jokowi have asked the G20's support for the digitization of MSMEs and women in the form of digital infrastructure development and technological cooperation, inclusive expansion of digital connectivity, and increased digital literacy of MSME actors.

"Recover together, recover stronger," President Jokowi concluded. 

In a related news, According to Indonesian Foreign Minister, Retno LP Marsudi, in her statement at the Splendide Royal Hotel, Rome, Italy, Saturday (30/10/2021), the world leaders have expressed their view of the need to vaccinate 40 percent by the end of 2021, 70 percent by mid-2022. The global strategy given by WHO is supported by leaders from the G20.

Quoted from BBC, the leaders of the world's 20 major economies have also agreed to approve a historic global pact that will see the profits of large businesses taxed at least 15%. It follows concern that multinational companies are re-routing their profits through low tax jurisdictions as highlighted by leaks such as the Panama and Pandora papers.