Remarks of President of the Republic of Indonesia During the Opening of B20 Inception Meeting (Virtually), Bogor Presidential Palace, West Java Province, January 27, 2022

Assalamu’alaikum warahmatullahi wabarakatuh,
May prosperity be upon us all,
Om Swastiastu,
Namo Buddhaya,
Greetings of Virtue.

His Excellency Tony Blair, founder and chairperson of the Institute For Global Change,
Distinguished Speaker of the House of Representatives Puan Maharani, Ambassadors of G20 countries in Jakarta,
Distinguished Governor of Bank of Indonesia,
Distinguished Ministers of the Indonesia Onward Cabinet,
Distinguished Chairperson of the Indonesian Chamber of Commerce and Industry,
Distinguished Chairperson of the Business20 Indonesia,
Distinguished speakers and session chair of the entire business community from the G20 countries and guests.

COVID-19 has taught us that the pandemic is not only a problem, but also an opportunity.

An opportunity to flourish.

We must capitalize on this opportunity to realize a fairer global governance, which brings prosperity and ensures a more inclusive and sustainable economic growth.

Indonesia’s G20 Presidency invites the G20 and B20 to collaborate to create breakthroughs and concrete actions to make great contributions to the global economic recovery.

In line with the main focus of Indonesia’s G20 Presidency, there are three main opportunities that we must make the most of:

First, transition to green economy.

Second, the increasingly rapid digital economy trend, and

Third, improvement of global health architecture that is more responsive in the face of a global pandemic.

Ladies and Gentlemen,

The transition to a green, sustainable economy is a huge responsibility, as well as a huge opportunity. The potential in the renewable energy sector must be followed by a clear scenario and roadmap, including funding and investment.

Indonesia has a new and renewable energy potential of 418 gigawatts, including from water, geothermal, wind and solar sources.

Indonesia has a wealth of metallic mineral resources needed to drive the transition to a sustainable green economy.

We are rich in nickel, bauxite, tin and copper.

We will make sure to supply enough of these materials for the world’s needs but not in the forms of raw materials, but in the forms of finished or semi-finished goods with high added value.

The nickel downstreaming that began since 2015 has brought positive impacts, not only on job creation but also in terms of export value and Indonesia’s trade balance.

The value of Indonesia’s exports has increased by US$230 billion that was greatly influenced by the increase in steel exports. Steel exports in 2021 reached US$20.9 billion, increasing from that in the previous period at US$1.1 billion in 2014.

As for 2022, I estimate that the value can reach the range of US$28-30 billion.

After nickel, we will encourage investment in bauxite, copper and tin. Our policy regarding the energy transition mechanism from fossil fuels to new and renewable energy will also guarantee certainty in investment.

In Java and Sumatra islands, we encourage the “early retirement” of steam power plants and switching to new and renewable energy, such as geothermal and solar panels.

And we will enable participation of the private sector to invest in this energy transition. Currently, there are 5.5 gigawatt steam power plants ready for this early retirement program.

Decarbonization in the transportation sector is also a serious concern for us. Massive electrification in the transportation sector began with the construction of mass urban transport such as the LRT and MRT in capital Jakarta, as well as encouraging investment in electric car factories.

We look forward to B20’s contribution to accelerating a smooth energy transformation without bringing negative impacts on small communities. Global solutions in terms of funding and partnerships are an agenda that must be our main concern, including technology transfer to encourage green economy-based production. We are inviting investments that can encourage mutually beneficial added value.

Ladies and Gentlemen,

Indonesia also pays serious attention to the development of digital technology, especially those that have a direct contribution to the empowerment of MSMEs and the development of human capital.

With a very large population and rapidly increasing purchasing power, Indonesia is very attractive for investment in digital economy infrastructure. We are inviting investments that provide opportunities for all levels of the society to participate in and benefit from this digital economic transformation. Digital economy in Indonesia is growing rapidly and currently Indonesia has one decacorn and eight unicorns.

Since the onset of the pandemic, the Government has encouraged MSME sector to make the most of digital platforms to market their products. This strategy has been successful in attracting more than 8.4 million MSMEs that currently have a digital platform to sell their products.

To encourage the increasing global interconnectivity, there are currently three investments in the construction of undersea telecommunication cables that are in progress, connecting Indonesia directly to the west coast of the United States without any intermediary countries. This will increase Indonesia’s bandwidth capacity by more than 100 percent once the project is completed.

Indonesia will also play an important role in the semiconductor ecosystem. This year, we will build a chip design facility and a polysilicon factory in Central Java province with a capacity of 40,000 tons. In the early stages, we will focus to supply solar cell needs. However, in the next few years the focus will be on semiconductors.

Finally, the Indonesia’s G20 Presidency will also focus on revamping the global health architecture to be more inclusive, following the principles of equality and responding to crises.

The Indonesian Government and the G20 invite the B20 community to collaborate, mobilize resources to finance innovation and equitable production of vaccines, medicines, and medical devices. Indonesia encourages investment in the health sector to meet domestic needs.

In 2021, the Central Government and the regional governments’ spending on the health sector will reach US$34.77 billion. We will prioritize the purchase of domestically produced pharmaceuticals and medical devices because if we can produce it domestically, the Government will not purchase the imported ones. Therefore, we are also inviting investment in the health sector which at the same time strengthens the global health resilience system.

Ladies and Gentlemen,

It is my hope that the B20 community will provide concrete offers that can be part of the concrete achievements of the G20 Summit. We must display global public and private partnerships to provide global solutions. Indonesia as a country and as the G20 Presidency is committed and working hard to contributing to an inclusive and sustainable world.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(EST/EP)