Indonesia Calls for Fairer Global Finances as G20 Summit Fractures Amid US Boycott
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Indonesia pressed for a more equitable global financial system at the G20 summit in Johannesburg, South Africa, this weekend, as the gathering was overshadowed by a US boycott and growing divisions among member states. Vice President Gibran Rakabuming Raka, standing in for President Prabowo Subianto, delivered the call for reform during the two-day summit, which concluded on Saturday.
A Shift in Global Governance
Arriving on Friday, Gibran attended the summit alongside a delegation including Coordinating Economy Minister Airlangga Hartarto, Deputy Foreign Minister Arrmanatha Nasir, and Deputy Finance Minister Thomas Djiwandono. In his address, Gibran conveyed President Prabowo’s greetings to South African President Cyril Ramaphosa and lauded South Africa for hosting the first G20 summit on African soil. “This marks a major shift, where countries of the Global South are increasingly becoming an essential part of global governance,” Gibran stated, according to a release from his office.
The Indonesian delegation emphasized the need for inclusive and sustainable economic growth, highlighting Indonesia’s commitment to allocating more than half of its national climate budget – approximately US$2.5 billion annually – to support green micro, small, and medium enterprises (MSMEs). Gibran also showcased the success of Indonesia’s Quick Response Indonesia Standard (QRIS) digital payment system in broadening financial inclusion and reducing socioeconomic disparities. “Financing must become more accessible, more predictable and more equitable,” he asserted.
Resilience and Humanitarian Concerns
On the second day of the summit, Gibran focused on Indonesia’s strategies for strengthening national resilience. He cited the Prabowo administration’s free nutritious meal program as a cornerstone of food security and underscored Indonesia’s extensive experience in disaster mitigation. The country, situated on the Pacific Ring of Fire, faces over 3,000 natural disasters each year due to its unique geological location.
Beyond domestic concerns, Gibran drew attention to the ongoing humanitarian crises in Gaza, Ukraine, Sudan, and the Sahel region. He warned that many of these tragedies are driven by human actions, not simply natural disasters. “These tragedies remind us to place humanity at the heart of global governance. The world must not normalize suffering that is, in fact, preventable,” he said.
US Boycott and Climate Action Rebuke
The summit was significantly impacted by a boycott from the United States, with President Donald Trump declining to attend. Despite this absence, G20 leaders adopted a declaration reaffirming global commitments to climate action. However, the process was not without friction. Argentina, under the leadership of President Javier Milei – a Trump ally – withdrew from negotiations shortly before the declaration was finalized, according to reports from Reuters.
The declaration’s strong stance on climate action was widely interpreted as a direct challenge to Trump, who has repeatedly cast doubt on the scientific consensus regarding human-caused global warming. A spokesperson for President Ramaphosa reportedly stated that the text “cannot be renegotiated,” as quoted by Reuters. The White House subsequently accused Ramaphosa of “weaponizing” South Africa’s G20 presidency and hindering a smooth transition ahead of the US assuming the rotating chair next year. The American presidency will follow a sequence of leadership from the Global South, including Indonesia (2022), India, Brazil, and South Africa.
Strengthening Bilateral Ties with the UK
Gibran’s participation in the G20 marked his debut on the international stage, necessitated by President Prabowo’s scheduling conflicts in Jakarta. These included a virtual meeting with United Kingdom Prime Minister Keir Starmer on Saturday, held in anticipation of the launch of the UK–Indonesia Strategic Partnership early next year. Cabinet Secretary Teddy Indra Wijaya stated that Prabowo and Starmer discussed strengthening cooperation in maritime affairs, economic growth, and higher education. “The virtual meeting marked an important first step toward next year’s joint agenda and reaffirmed both countries’ commitment to building an inclusive, forward-looking and mutually beneficial partnership,” Teddy said.
