The G20 is a club of countries with the largest economies in the world, from China, India, the US, Indonesia, Japan, South Korea, Italy, Saudi Arabia, and others. The G20 has added value because (a) it reflects the mutual agreement of heads of government from various major countries, which will soon be implemented by various world multilateral institutions, including the IMF, World Bank, OECD, ADB, UN system and others. (b) reflecting the world's sense or urgency to the major development problems currently engulfing the world, such as pandemics, climate change and the challenges of realizing the SDGs.
The C20 opening meeting has been held for 3 days online. This meeting coincided with the meeting of the G20 leaders held by the Italian government as the host of the G20. The January 20 C2021 meeting can be judged a success with indications of broad participation from CSOs around the world, including representatives of Latin America, Asia and Indonesia. Previously, the Italian C20 committee had contacted us and asked us to sit in SC C20 according to tradition and procedures so far.
C20 is the official channel for CSO participation in the G20 forum. In other languages, CSOs are recognized and have an equal position with the other four sectors, namely L20 (labor), T20 (think tanks and research institutes and also B20, (business).The important role of CSOs can be carried out in several ways, including (a) dialogue with The Ministry of Finance usually leads government delegations; (b) provides substantial input, including new policy proposals, (c) collectively holds activities to gather the voices of CSOs worldwide.
In contrast to last year's G20 2020 in Saudi Arabia which was quieter, because the world was hit by a pandemic and because Saudi has received many protests (because of its human rights record), this year's G20 and C20 will be more open and dynamic, with predictions of CSO participation in Europe and the world will be strong and articulate
What is the relevance to Indonesia and Why. In 2022 or two years from now, Indonesia will host the G20 meeting. In 2020, the Presidency will be held by Saudi Arabia, then Italy in 2021 and Indonesia in 2022. The order of the hosts will determine the order of who sits in the SC/Troika C20 this year, namely Italian CSOs, Saudi Arabian CSOs and Indonesian CSOs.
The relevance and urgency of the G20 and C20 for Indonesia are several things, among others. Indonesia needs access to affordable vaccines and medical equipment. This could be helped by the G20 agreement (if any). So far, the approach in vaccines is more of an Ad Hoc approach or a market approach (purchasing power). Of course, this method will not benefit Indonesia, in the midst of its purchasing power. Another policy issue, for example, is that Indonesia really needs additional state revenue from digital taxes to overcome the shortage of tax revenue due to the pandemic and economic crisis. Another relevant issue is tax policy for international companies. If a new tax system is implemented (unitary formula system), then cases of tax evasion and tax avoidance by various multinational companies will be greatly reduced and the benefits for Indonesia will be quite high in obtaining tax funds.
Several important issues that stand out in the policy dialogue between CSOs and representatives of the G20 Finance Ministers and the Italian government during the 3 days of the C20 meeting are as follows: First, is about recovering from the pandemic and specifically how the G20 can ensure access to Vaccines, among other things the input is for G20 leaders to agree on universal access to vaccines and so that all countries can get vaccines either in a free/subsidized and/or affordable way.
Secondly,, Development funding, from various reliable estimates by various official sources, there is an unanswered and fulfilled development funding need of 2.5 trillion dollars, the fund is very much needed to overcome the pandemic and socio-economic recovery in various developing countries. Third, the extent to which the G20 can promote the implementation and financing of the SDGs. Especially for poor and developing countries. The Italian government is likely to encourage the implementation of the SDGs to become a global agreement to ensure changes in direction and approaches to greener and more sustainable development (low carbon development, non-fossil fuels, etc.)
Fourtht about Taxes. Various proposals have also been raised about the importance of the G20 to start implementing a global tax system with a new method (unitary formula system) to avoid tax evasion and tax avoidance for multinational companies. Tax/Digital taxation. WG G20 is likely to agree to a digital tax on internet companies including Google and Zoom and so on.
For Indonesia's preparation to host 2022, the following points need to be taken into account and jointly prepared in at least 2 stages, namely the first stage covering the preparation and activities of Indonesian CSOs in 2021 and the second stage covering the implementation and role of CSOs in 2022.
For 2021, what is urgently needed to be done are as follows: (i) the formation of a working team or working group for Indonesian CSOs for the preparation of C20; (2) regular and periodic dialogue with the Ministry of Foreign Affairs and the Ministry of Finance/Sherpa Indonesia as representatives of the Indonesian delegation at the G20, for work synergies and preparations; (3) Identification of the focal point of Indonesian CSOs to be the advocate for several strategic issues including open government and anti-corruption; Pandemic and social assistance, Education and citizenship, gender equality, development funding. Furthermore, other activities are (4) regular dialogue with Indonesian CSOs, including the possibility of conducting a poll survey to form policy priority proposals by C20 Indonesia for this year's C20/G20/2021; (4) establishment of policy priority documents for 20 C20/G2022.
-(Sugeng Bahagijo & Ah Maftuchan)-
