Does
the G-20 matter for Indonesia?
Muhtar Lutfi ; A postgraduate student of international
relations
at Gadjah Mada University, Yogyakarta
|
JAKARTA
POST, 18 November 2014
The
Group of Twenty (G20) major economies is believed by many to be an
organization capable of finding solutions to the global financial crisis for
developed and developing countries alike.
The
G20’s latest summit just ended in Brisbane, Australia, and unlike previous
groupings (i.e. the G7 and the G8) the G20 is considered a breakthrough in
multilateral cooperation.
Together,
the G20 commands well over 85 percent of the global economy. Therefore, the
success of the forum will have a significant impact on all nations, including
those who are not members of
the G20.
The G20
leaders agreed on a “comprehensive and coherent” economic plan called the
Brisbane Action Plan. The plan will boost major economies by 2.1 percent and
deliver “spill-overs” to smaller, non-G20 countries at 0.5 percent by 2018.
Other
issues discussed at the summit included overcoming intensifying tax
competition over the next decade so as to ensure strong and fair competition
for business and investment, the issue of climate change and the Ebola
outbreak.
But the
G20 summit left many political issues unresolved, particularly those
concerning Russia and the dispute in the South China Sea. For western
countries, these two “major” political issues are seen as the main
impediments to developing the global economy.
Russia
and China are indeed two big players in the world economy. On the other hand,
they tend to “antagonize” Western dominion.
Both
also have strong militaries and are members of the United Nations (UN)
Security Council. Hence, both countries have to be included in discussions
about world affairs.
Indonesia
was honored to be inaugurated as a member of the G20 in 2008. Indonesia is
the only country in ASEAN to be included.
Former
president Susilo Bambang Yudhoyono was convinced that the forum was not only
an economic powerhouse, but also a civilizational powerhouse.
The G20
is “civilizational” because it
consists of several Muslim-majority countries like Turkey, Saudi Arabia and
Indonesia. Yudhoyono believed that the G20 was a representative of diverse
global community.
Indonesia’s
free-and-active foreign policy would be tested to build bridges in this
forum.
Some
believe G20 membership is crucial for Indonesia, as it allows the country to
advance its national interests. Perhaps one of the most significant roles
played by Indonesia at the G20 was helping create the General Expenditure
Support Fund (GESF) in 2008.
The GESF
was founded to help developing countries by giving them liquidity of funding
from the IMF and the World Bank.
The main
purpose of the GESF is to help develop infrastructure, create jobs and
achieve the targets set by the Millennium Development Goals (MDGs) by 2015.
Regarding
the GESF program itself, Indonesia still faces difficulties. The revised 2014
state budget allocates only about 8 percent of total spending — or Rp 150
trillion (US$12.5 billion) — for infrastructure development, compared to 18
percent for fuel subsidies and Rp 107.1 trillion for electricity subsidies.
According
to an IMF working paper in 2013, Indonesia’s ease-of-doing-business rating
was still the second-lowest in the region, and the quality of infrastructure
was the worst.
Fuel
subsidies have become one of the most politically sensitive issues for the
new government. President Joko “Jokowi” Widodo and his administration face
many dilemmas regarding the subsidies.
If the
government reduces the energy subsidy, the price of goods and services will
rise. However, the subsidy has been huge and wasteful spending, enjoyed
mostly by the middle- and high-income people.
As a
bridge toward building harmony among civilizations represented at the G20,
Indonesia has to be more courageous promoting compatibility between democracy
and Islamic values.
The
recent legislative and presidential elections must be seen as an example to
other G20 countries and to the world at large that Indonesia can be a role
model and that Islam and democracy can walk hand-in-hand.
To
conclude, in this era of globalization, the G20
forum is important for Indonesia. Indonesia should not only be proud of its
membership, but also become more assertive in using it to secure national
interests.
The challenge is how to maximize domestic capacity for improving the
quality and the pace of Indonesia’s economy. Indonesia’s free-and-active
foreign policy must also be implemented more vigorously into the greater
agenda. ●
|
Tidak ada komentar:
Posting Komentar