President Joko Widodo in the G20 Presidency. (PHOTO: AJP TIMES Indonesia)

The success of the Indonesian Presidency of the G20 has had a positive effect on the national economy. One of the main beneficiaries has been Bali which was the center of the G20 Summit

ACCORDING to a report by TIMES Indonesia: “It is predicted that it will be positive for the performance of the national economy. The transmission is from the tourism sector, such as trade, transportation, food and beverages, MICE, hospitality, and services,” said INDEF Economist, M. Rizal Taufikurahman, on Thursday (11/17/2022).  

Furthermore, Rizal estimates that the multiplier effect for the Indonesian economy will reach around Rp6.6 trillion, smaller than the government’s calculation of  Rp7.4 trillion. 

“There is a Direct and Indirect Effect. Direct effects such as spending on foreign tourists such as hotel / MICE shopping, food and beverages, clothing, MSMEs, and others. Meanwhile, the Indirect effect has an impact on economic performance. Particularly  the tourism sector, such as the food and beverage processing industry  sector, trade,  air, sea, and land transportation, hospitality, and other services ( laundry services, entertainment, and others)” added Rizal.

In addition to the tourism sector, the G20 commitment will encourage trade, especially exports.

At the G20 Summit Indonesia also received several investment commitments and grants, all the more in the field of energy transition.

U.S President Joe Biden who sat down with Coordinating Minister for Economic Affairs Airlangga Hartarto announced, the U.S Government officially announced new project on PGII’s, including Indonesia Just Energy Transition Partnership (JETP) which mobilizes USD 20 billion in public and private sectors financing for Indonesia, the Indonesia Millennium Challenge Corporation (MCC) Compact which has successfully launched USD 698 million. 

Coordinating Minister for the Economy Airlangga himself plays an essential role in the G20.  He expressed gratitude when the G20 Presidency ended successfully. “I am grateful and touched, with all the dynamics, tough negotiations, and hard work for one year has paid off,” said the Coordinating Minister Airlangga.  

The man who also serves as chairman of the Golkar Party hopes that all the agreements that occur at the G20 will benefit not only Indonesia as well as other countries in the world. 

For the full report visit here.