Badung, 23 September
2022 – Minister of Trade Zulkifli Hasan declared, The G20 Trade, Investment, and Industry Ministerial Meeting (TIIMM), which was held on 22-23 September 2022 in Bali, was successfully conducted and supported the achievement of six priority issues to accelerate global economic recovery and sustainable development goals.
This was emphasized by the Minister of Trade Zulkifli Hasan during a press statement with the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia today, Friday, (23/9) in Badung, Bali.
“We should be proud that this G20 TIIMM meeting has produced a number of concrete achievements,”
said Trade Minister Zulkifli Hasan.
First, the Reform of the World Trade Organization (WTO). The G20 countries emphasized the importance of strengthening the basic principles of the World Trade Organization (WTO) and agreed that WTO reform is the key to strengthening trust in the multilateral trading system.
“Member countries are also committed to taking advantage of the positive momentum from the results of the 12th WTO Ministerial Conference (KTM) to engage in active and constructive discussions leading to the 13th WTO Ministerial Conference,” said Trade Minister Zulkifli Hasan.
Second, the role of the multilateral trading system in strengthening the achievement of sustainable development goals (SDGs). The G20 members agreed on the importance of the multilateral trading system in promoting the achievement of the SDGs. The role of the multilateral trading system to strengthen the achievement of the Sustainable Development Goals (SDGs)
Third, the response of trade and investment to the pandemic and the global health architecture. “G20 countries also agreed on the importance of the role of the multilateral trading system to increase resilience from current and future pandemics. Including affirming support for the related results achieved in the 12th WTO Ministerial Conference,” said Trade Minister Zulkifli Hasan.
Fourth, digital trade and global value chains. The G20 member countries emphasized that global value chains play an important role in encouraging the participation of developing countries, particularly businesses, micro, small and medium enterprises (MSMEs), women, and young entrepreneurs into global trade. The G20 also agreed to promote inclusive digital trade.
Fifth, increase investment for global economic recovery. The G20 countries underscored the importance of sustainable and inclusive investments for a strong economic recovery.
Sixth, coherence between trade, investment and industry. The G20 members emphasized the role of the multilateral trading system to restore industrial productivity and agreed on the coherence of trade and investment policies with industrial policies to address future challenges.
Meanwhile, Minister Bahlil stated that trade, industry and investment are an inseparable link. In the investment cluster, there are five issues that have been agreed upon by the G20 Ministers.
First, the importance of continuous investment flows for economic recovery in the context of job creation through industrialization and other development goals. Second, simplifying investment procedures, which is what Indonesia has done through the Job Creation Law (UU CK). Third, downstreaming is one of the instruments for creating added value, as well as strengthening foreign investor partnerships with MSMEs. Fourth, the importance of a fair and equitable climate finance scheme to encourage sustainable investment. Fifth, the compendium consensus, which is called the “Bali Compendium on G20 Policy Practices in Promoting Investment for Sustainable Development” or referred to as the Bali Compendium.
“With the Bali Compendium, Indonesia can formulate its own promotion strategy, so can other countries. Therefore, they must be respected in making strategies according to the comparative advantages of their respective countries,” explained Minister Bahlil.
Bilateral Meetings and Trade Contracts
On the sidelines of the meeting, Trade Minister Zulkifli Hasan also held bilateral meetings with 13 trading partner countries. These include Australia, South Africa, the United States, Saudi Arabia, India, Britain, Canada, South Korea, New Zealand, Singapore, Spain, the United Arab Emirates and the European Union. In addition, the Minister of Trade also held bilateral meetings with international organizations, namely the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
Trade Minister Zulkifli Hasan added that the TIIMM is also a concrete step to optimize Indonesia’s trade relations with partner countries, especially countries that already have bilateral trade agreements with Indonesia. On the sidelines of the TIIMM series, contracts were also signed between Indonesian businesses and its G20 partner countries, generating USD 710.6 million from 23 trade contracts. One of which is a cooperation contract for the development of human resources (HR) in the field of information and technology (IT), which will be used for trade in services between Australian and Indonesian businesses within the framework of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
“This event is a concrete form of the utilization of concessions that Indonesia has with its partner countries, as well as a showcase for all stakeholders to be able to optimize the economic benefits of Indonesia’s bilateral trade agreements,” said Trade Minister Zulkifli Hasan.