Jakarta, The PRAKARSA - Research and Knowledge Manager The PRAKARSA, Roby Rushandie, was a resource person in a public discussion entitled "Strengthening Indonesia's Role in the G20 for a Just and Balanced Global Order: Push for Financial Reform, Energy Transition, and Global Policy Direction Amidst Geopolitical Uncertainty" organized by the Indonesian civil society coalition under Civil 20 (C20) on Monday, (11/17/2025) at the Aryaduta Hotel Jakarta.
Roby was a speaker at panel session 1, themed "Global Financial Architecture and the Direction of Indonesian Diplomacy in the G20." Also present as panelists were Masni Eriza (Head of the Center for Multilateral Policy Strategy, Ministry of Foreign Affairs of the Republic of Indonesia), Siti Khoirun Ni'mah (Executive Director of INFID), and Irvan Tengku Harja (Program Manager of The Habibie Center) as moderator.
The G20 has not yet solved the challenge of global inequality
On this occasion, Roby stated that the 2025 G20 Summit could be a momentum to push the agenda for reforming the global tax system to be fair and inclusive. He believes the G20 has so far failed to address the issue of inequality. Citing data from the UBS Global Wealth Report 2025, which shows that although the world is getting richer, with global wealth growth of 3,4 percent per year, wealth distribution is increasingly concentrated in certain regions. North America is recorded as having wealth per adult The highest income group was USD 593.347, while Latin America was the lowest at USD 34.694. Similarly, the global wealth pyramid shows the fastest growth among the top groups.
Roby said a similar situation also occurred in Indonesia. Citing Jeffrey Winters' findings regarding Material Power Index (MPI), extreme wealth inequality has increased sharply as the 40 richest individuals increasingly control national assets. In the past decade, Indonesia even rose from second place in terms of extreme inequality in 2011 to first place in 2023. Roby also highlighted that the unequal distribution of wealth is also a result of a global tax system that is considered to favor developed countries and the ultra-rich, citing a study. EU Tax Observatory 2025 which found that in several countries sampled in the study, those earning more than USD 1 million were only subject to effective tax rates of between 20 and 26 percent, while other groups faced rates of 45 and 60 percent. This clearly shows that the G20 has not yet optimally fulfilled its role in reducing inequality.
The influence of the global financial architecture within the G20 framework on Indonesia's policy space
Roby emphasized that developing countries face multiple pressures in the form of debt burdens, SDG funding needs, and the ever-increasing need for climate finance. From a tax perspective, since 2009, the G20 has used the OECD as a policy channel, but the OECD's global tax plans, such as Base Erosion and Profit Shifting (BEPS) and Two-Pillar Solution still biased towards developed countries. Roby highlighted that Two-Pillar Solution only provides additional income equivalent to 0,026 percent of GDP for developing countries, and actually triggers race to the bottom in tax rates. As a result of the practice tax abuse Globally, countries are estimated to lose USD 492 billion per year, while Indonesia itself has the potential to lose around USD 2,47 billion.
Regarding climate finance, Roby assessed that the G20 agenda remains inconsistent and has not yet yielded adequate results for Indonesia. He touched on the development of JETP, which, despite funding commitments from the United States and Japan, still places Indonesia in a dilemma as a member of the G20. financial blind spot or “too advanced to receive concessional climate finance, yet too risky for large-scale financing”. This situation shows that the design of the global climate tax and finance architecture still creates inequality and limits the ability of developing countries to promote inclusive development and green industrialization.
Indonesia's Strategic Opportunity to Promote a Fairer Global Financial Architecture at the G20
Roby emphasized that Indonesia's position as a developing country and a member of BRICS provides strategic advantages to become a member of BRICS. “bridge builder antara global north and global south”Through cooperation with BRICS, Indonesia can promote synergy within the BRICS agenda at the G20, such as reducing dependence on the US dollar. local currency settlement (LCS), as already implemented between Bank Indonesia and other central banks, is considered a concrete step that can be expanded. Roby also sees significant synergy opportunities because since 2022, the G20 has been chaired consecutively by BRICS countries such as Indonesia, India, Brazil, and South Africa, thus opening up space for the G20 agenda. global south to stand out more.
Furthermore, Roby believes global tax reform should be a priority for Indonesia, particularly to address wealth inequality and international tax designs that still favor the super-rich and developed countries. He emphasized that the instruments wealth tax become a significant opportunity, both as a measure of tax justice and as a source of development funding.