G20 to play key role in development of global health infra: Joko Widodo

With his country holding the G20 presidency this year, Indonesian President Joko Widodo on Thursday said the world needs more resilient health infrastructure to face future threats and the block of 20 leading economies has an important role to play in the development of resources to meet this goal.

In a special address at the World Economic Forum's online Davos Agenda 2022 summit, he called on the IMF to mobilise global health resources with support from advanced economies and the G20.

He also said G20 is prioritising the transition to sustainable energy, but developing countries need finance and technology from developed nations to make it happen.

"The G20 and advanced economies must work together to create a more resilient and responsive global health architecture to face future threats and pandemics," Widodo said.

He said the International Monetary Fund (IMF) should be tasked to mobilise resources to revitalise global health architecture.

This should include a global contingency fund for medical supplies, building capacity in developing countries to manufacture vaccines and the creation of global health protocols and standards.

"The costs will be much lower than the losses we sustained due to the vulnerability of the system during the pandemic," the president noted.

In a discussion with Klaus Schwab, founder and Executive Chairman of the World Economic Forum (WEF), Widodo highlighted that G20 will play an important role in mobilising the development of this global health architecture.

"I trust that advanced economies will not object to supporting such initiatives," Widodo observed.

He invited all global business leaders to contribute their ideas to the G20's three key goals for 2022 -- creating a more resilient global health system; optimising digital technology to support societal transformation; and driving a fair and affordable transition to clean energy and a circular economy.

"The benefits must be felt by wider society," he said.

The Indonesian president also said six of his country's sectors are wide open for foreign investment -- export-oriented labour-intensive industries like health, renewable energy, infrastructure, automotive (especially electric vehicles), tourism and value-added mining.

In response to a question on how Indonesia -- a nation heavily dependent on coal-fired power -- could accelerate its own energy transition, Widodo said developing countries need technology transfer and financial support from advanced economies to ensure the transition does not burden their citizens.

Indonesia needs USD 50 billion for its renewable power sector and a further USD 37 billion for forestry, land use and marine sectors.

"Concrete outcomes can only be achieved through strong cooperation. Technology and financing will be key," he said.

The president pointed out that as part of its roadmap to reach net-zero by 2060, Indonesia had slashed the coverage area of forest fires sevenfold, from 1.7 million hectares in 2014 to 229,000 hectares in 2021.

He also said Indonesia has the potential to be a global market leader in carbon trading and is predicted to surpass the carbon trade potential of Peru, Kenya and Brazil -- countries with the same tropical forest cover.

His government also plans to raise capital by issuing environmental and social bonds, and through projects that reduce deforestation and promote sustainable forest management.