The G20 presidency provides many conveniences for Indonesia, especially in attracting foreign investment in strategic sectors.
Continuing the tradition of all G20 meetings, the agreement will set a good precedent for the presidency of the next G20 summit in India which will take place next year.
The President of the Republic of Indonesia, Joko Widodo hopes that at the upcoming G20 event in India, he can continue the mandate agreed upon at the G20 Indonesia. Thus, efforts to encourage global economic recovery can be realized through the implementation of the G20 Bali Leaders Declaration.
So if you look at the troika there are three countries. This year's presidency was assisted by the state before and after. Now the troika is Indonesia, then Italy, and next year India. For next year's troika are Indonesia, India and Brazil. All three are developing countries
Developed countries that are members of the Partnership for Global Infrastructure and Investment (PGII) allocate funds for infrastructure development. The funds in the form of grants and loans amounting to US$600 billion can be used by developing countries and poor countries for the next five years. Infrastructure development needs to empower local communities and economies to have a high sense of ownership.
The allocation of funds is to support the financing of new PGII projects including the Just Energy Transition Partnership (JETP) of US$ 20 billion for Indonesia, the Indonesia Millennium Challenge Corporation (MCC) Compact of US$ 698 million, the Trilateral Support for Digital Infrastructure through a partnership between Australia and Japan to digital projects, securing critical mineral supply chains in Brazil, developing solar energy in Honduras and investing in healthcare infrastructure for India.
President Joko Widodo as the Indonesian G20 Presidency emphasized that PGII in supporting infrastructure development in developing countries must be based on a collaborative paradigm. Involve more stakeholders including the private sector and generate sustainable development and support the energy transition.
The ability of developing countries and poor countries to build infrastructure in the midst of a global multidimensional crisis is a challenge for fiscal policy. At the head of state meeting in Bali, Indonesia was quite intense in bringing up a number of issues to support economic recovery for developing countries and poor countries. Debt restructuring and infrastructure development for developing countries and poor countries are Indonesia's focus in the 2022 G20 Presidency.
According to European Commission President Ursula Gertrud von der Leyen, "PGII not only invests in infrastructure development, we also invest in the local capacity of our partners."
PGII is a collaborative effort of the G7 countries namely the United States, Britain, Italy, Japan, Germany, Canada and France, which was formed in June 2021 during the 47th G7 Summit in the United Kingdom.
