Think 20 (T20) acts as a “knowledge/idea bank” for the G20. In line with this role, the T20 is a platform for experts to present comprehensive analysis and ideas to support the G20 in producing concrete and sustainable policies related to world issues and problems. The T20 recommendations to the G20 are based on a research-based policy brief that considers and integrates the agendas of think-tanks from G20 member countries. To that end, T20 has nine task forces (TFs) that are managed in a decentralized manner according to the expertise of each research institute.
On Wednesday (27/7), the T20 Task Force 5 (TF5) on Inequality, Human Capital, and Well-Being, together with the Faculty of Economics and Business, Universitas Indonesia (FEB UI), Oxford Poverty and Human Development Initiative (OPHI), and Oxford University, held a meeting to discuss solutions to poverty problems in Indonesia and the world. The event was supported by The Smeru Research Institute; the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia (Kemendikbudristek RI); Bank Rakyat Indonesia; and Astra International.
The webinar titled “Multidimensional Poverty in the Midst of the Covid-19 Pandemic: A Commitment to Reducing Poverty in All Its Forms” was held at The Mandarin Oriental Hotel Jakarta and broadcast live through The Smeru Research Institute’s Youtube account. Attending the event were UI Rector, Prof. Ari Kuncoro, S.E., M.A., Ph.D.; Deputy Minister of Finance, Prof. Suahasil Nazara, S.E., M.Sc., Ph.D.; Dean of FEB UI, Dr. Teguh Dartanto, M.Sc.; and speakers from various countries.
Prof. Ari, in his welcoming speech, said that this event aims to bring together experts and researchers from Indonesia and Oxford to work together to create innovative solutions to answer the challenges after the Covid-19 pandemic. “I hope this discussion can generate a spirit of collaboration – as the spirit of Gotong Royong is known in Indonesia – between Indonesian researchers, United Kingdom researchers, and world researchers to support sustainable development to recover Indonesia and other G20 countries from the crisis caused by the pandemic,” said Prof. Ari.
The Covid-19 pandemic has greatly impacted people’s lives. Since the beginning of its spread, there has been disruption in the economy that has caused economic growth to be stunted. Many residents have experienced a decrease in income and even lost their jobs. The poverty rate has risen even more sharply. As the pandemic continues, more people are affected and economic problems are widespread in Indonesia and the world. Therefore, it is necessary to monitor and address poverty as stated in the first point of the Sustainable Development Goals.
“Innovative solutions are needed to overcome the problems that arise due to this poverty. The dialogue and panel discussion in this event will explore the multidimensional poverty index and concrete solutions to formulate the best policy in overcoming poverty problems due to the Covid-19 pandemic. We hope that through this event, relevant solutions will be found to answer the various challenges that exist in society and restore conditions due to Covid19,” said Prof. Ari closing his speech.
Focusing on the issue of poverty, the discussion was divided into six panels held in parallel. Panel 1 discussed TF5 policies that specifically address multidimensional poverty and inequality. The discussion covered the role of TF5 and the challenges faced in terms of social and economic aspects during the implementation of the policy. Panel 2 discussed business sector solutions to end multidimensional poverty. The panel highlighted the role of the private sector and entrepreneurship, especially Micro, Small and Medium Enterprises (MSMEs), in economic development and poverty alleviation after the pandemic. The meeting also discussed the main policies that the government needs to consider to support MSMEs.
Meanwhile, Panel 3 in this discussion discussed the Multidimensional Poverty Index (MPI) if included in budget allocation policies. MPI looks at the structure of poverty more broadly, not only in terms of income or consumption, but also in multidimensional terms such as limited access to education, health, and quality of life. There are ten indicators that are more comprehensive or fairer in measuring poverty. For Indonesia, MPI is a new breakthrough in capturing poverty conditions because it provides a more real picture of poverty than the consumption approach.
Panel 4 discussed social protection policies amid the pandemic, especially related to the development of MPI in India and Nigeria and the challenges faced in supporting social protection policies in Indonesia. Meanwhile, the relationship between human well-being and the environment was discussed in Panel 5. The government or public sector must report on the environmental impact of its policies. Awareness of the importance of taking environmental impacts into account can guide sustainable government policies. Through multidimensional poverty measurement, macro and microeconomic policies related to human welfare and the environment are well-targeted.
In Panel 6 of this discussion, the application of multidimensional poverty measurement to look at technology-enabled community vote counting was discussed. Technology and non-traditional data sources can support urban well-being monitoring during the pandemic. In this case, technology helps gather democratic voices on how best to monitor well-being during the pandemic in urban areas.
Prof. Suahasil on that occasion conveyed important points in the finance track in the G20. First, the G20 committed to using all policy instruments to manage economic performance. Not only development policy, fiscal policy, monetary policy, and labor policy, the G20 is committed to making policies that cover all instruments. “Although the Covid-19 virus is still haunting us, we believe that we can get out of this pandemic situation,” said Prof. Suahasil.
Furthermore, the G20 agreed to increase awareness, surveillance, preparedness for the global health situation. Today, the economy and health are inseparable. Moreover, due to the pandemic, there is a connection between the economy and health in the world’s countries. The G20 also pays attention to sustainable finance by always using a medium and long-term perspective in every decision-making. For example, in Indonesia, an energy transition mechanism is being developed from coal energy to environmentally friendly renewable energy. However, according to Prof. Suahasil, all of these G20 targets can only be achieved if Indonesia and other countries in the world have quality human resources. Therefore, the problem of poverty must be taken seriously.
