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EXECUTIVE SUMMARY

Boosting Indonesia’s Role in Strategis Issues for G20 Presidency

Directorate of Research and Development 2022

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Literature Review, Webinars/FGDs, and Research-Based Policy Papers:

Harmonization and Strengthening of Global Health Standards and COVID-19 Recognition Protocols

Fatma Lestariâc*, Brian Sri Prahastuti^b, Hendy R. Wijayaâ, Abdul S. Kadirâ, Andrio Adiwibowo^c, Yudi Ariesta Chandra^d, Proud Agung Satryaâ, Wulan Kusuma Wardani^c, Fira Azzahrê

a Faculty of Public Health, Universitas Indonesia

b Office of the Presidential Staff of the Republic of Indonesia

c Disaster Research & Response Center, Universitas Indonesia

d Faculty of Nursing, Universitas Indonesia

e Faculty of Nursing, Universitas Indonesia

*correspondence: [email protected]

One of the important strategies to deal with the COVID-19 pandemic is through testing.

However, currently, there are still challenges in implementing the protocol and recognition of COVID-19 testing which has become a global health standard. WHO emphasized that in its implementation, the main challenge is that the testing standards and vaccine certificates have not been accepted, verified and agreed upon among the G20 countries. Here, this study aims to formulate the recommendations needed to achieve harmonization of protocols and recognition of COVID-19 testing. The method used in this study uses a combination of quantitative and qualitative data collection through desk review and FGD. The research focuses on six priority areas, including COVID-19 testing, COVID-19 vaccine, COVID-19 test operability, infrastructure and ecosystem of COVID-19 test data, investment, and harmonization of health protocols for future pandemics. To harmonize COVID-19 testing/tests, this study recommends that codes for laboratory data should be interoperable using the principle of describing the same tests/tests in the same way every time.

Harmonization of COVID-19 protocols should extend beyond G20 members, with a focus on adoption of digital health applications in low- and middle-income countries. In the future, and to deal with potential future pandemics similar to COVID-19, G20 member countries should enhance current protocols to formulate implementation of universal verifiers worldwide in preparation for future outbreaks, pandemics or other disease mitigations.

Keywords: COVID-19, G20, protocol, recognition, testing

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Improving School-Age Children’s Health Literacy on Infectious Disease: a policy brief Diantha Soemantri^a*, Dian Ayubi^b, Allenidekania^c, Santi Purna Sari^d, Melissa Adiatman^e

a Department of Medical Education, Faculty of Medicine, Universitas Indonesia

b Department of Health Education and Behavioral Sciences, Faculty of Public Health, Universitas Indonesia

c Department of Pediatric Nursing, Faculty of Nursing, Universitas Indonesia

d Laboratory of Clinical Pharmacy and Social Pharmacy, Faculty of Pharmacy, Universitas Indonesia

eDepartment of Community Dentistry - Prevention, Faculty of Dentistry, Universitas Indonesia

*correspondence:[email protected]

The COVID-19 pandemic has had a significant impact on people's lives around the world.

At the same time, there is a growing awareness of various other infectious diseases, one of which is due to climate change which has the potential to cause the next outbreak.

Overwhelming disruptions can bring a strong public health system into collapse. Thus, as part of efforts to realize global health system resilience and improve pandemic prevention, preparedness & responses (PPR), it is necessary to increase health literacy. Increasing health literacy is indeed a part of public health efforts.

Health literacy must be developed from an early age because it is related to the adoption of healthy lifestyle behaviors in adolescence and adulthood. However, health literacy in school- age children, particularly related to infectious or communicable diseases, is still under- researched. Efforts to increase health literacy in school-age children are also still limited. One of the recommended approaches is the School Promoting Health (SPH) or a Whole School Approach (WSA). Indonesia has already a program called “Usaha Kesehatan Sekolah (UKS)”

or “School Health Efforts” in English. The concepts of UKS can be considered to be comprehensive, in line with the WSA or HPS approach, since it includes topics of health education, health services and the development of a healthy school environment. However, in practice there are still many limitations in terms of human resources, facilities and infrastructure. Various educational materials have also been prepared by UKS, but their use and effectiveness have not been reported.

The results of a scoping review of 11 articles reporting empirical research on interventions to increase health literacy of school-age children against infectious diseases demonstrated that various temporary educational efforts in the form of workshops, developing booklets and children's songs had been carried out. Although these efforts have shown an increase in children's knowledge, before and after the intervention, long-term retention has not been demonstrated and the sustainability of such a temporary program is difficult to establish.

Thus, it is necessary to integrate health literacy education into the formal curriculum of school- age children and increase teacher capacity through training or certification modules. In addition, the UKS revitalization is also recommended in order to realize the Health Promoting School approach in schools.

Keywords: School-age children, Infection, Curriculum, Health Literacy, Education

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Analysis of Indonesian Pharmaceutical Companies’ Contribution in Supplying Global and Domestic Market During the Pandemic

Muhammad Syaroni Rofiiâ*, Eva Achjani Zulfaâ, dan Imam Khomeiniâ,Eka Ulya Zubaidah^b, Shofiah Nur Rohmah^b

aNational Resilience Studies Program, School of Strategic and Global Studies, Universitas Indonesia

bFaculty of Pharmacy, Universitas Indonesia

The Covid-19 pandemic that has taken place in the last two years has opened our eyes to the weakness of our health system. Indonesia had experienced a shortage of medicine, the price of personal protective equipment for health workers suddenly rose drastically, until the emergence of claims in the community about drugs that were considered to be able to cure diseases caused by Covid19. The government and society can be said to have succeeded through the pandemic, although there is still a lot of homework (PR) that can be seen as a result of the pandemic; The national pharmaceutical industry has not been able to compete at the global level.

Indonesia is hosting the G-20 forum or the G-20 presidency. This is an opportunity for Indonesia to show stability and increase economic growth. In fact, the national pharmaceutical industry is still an industrial sector that is not yet prominent in the economic field, state- owned company as well as other private companies are not competitive enough to face international competitor. This is certainly contrary to the spirit of the government which wants the independence of the pharmaceutical industry. Therefore, it is necessary to have a policy that accommodates the needs of the pharmaceutical industry but still pays attention to the results of quality pharmaceutical products.

This Policy Paper is directed to provide alternative paths in the pharmaceutical industry from a multidisciplinary perspective by involving researchers from School of Strategic and Global Studies, Faculty of Public Health and Faculty of Pharmacy of Universitas Indonesia.

Through this Policy Paper, the research team hopes that it can become input for policy makers in responding to the problems they are currently facing. In carrying out this study, the research team would like to thank the Directorate of Research and Development (DRPM) of the University of Indonesia for funding this research. We also thank the academics and community organizations involved in the process of preparing this Policy Paper.

Keywords: Pharmacy, G20, Indonesia, National Defence

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Pre-Impalantation and Pre-natal Genetic Tests in Indonesia: Technical, Biological and Social Approach Update for Developing Country

Ariel Pradipta*, Antonia C.C. Paramitha, Budi Wiweko Indonesian Medical Education and Research Institute (IMERI),

Fakultas Kedokteran Universitas Indonesia

World fertility rate is reported to decline despite increase in world population. Infertility issues are reported to impact up to 186 million people around the world. Asissted reproductive technology have become a solution to manage infertility which consist of several techniques, including pre-implantation (PI) genetic test or pre-natal genetic (PNG) test. These tests can detect genetic abnormalities in the fetus. Chromosomal and other genetic abnormalities occur in about 3% in the general population and can lead to specific challenges in a child’s physical and/or mental development. These conditions have also been reported to increase child mortality rate to 25 cases for every 1000 live-births globally, or 15 cases for every 1000 live-births in Indonesia [1].

Indonesia have utilized various methods and technologies to advance reproductive health.

However, the number of PI/PNG tests have remained relatively low. We indicate several main issues that contibute to this, which are high cost, lack of in-depth knowledge regarding the test and vague post-test management. We suggest 4 main approaches to enable effective PI/PNG tests in Indonesia: (1) collaborative effort to build a strong knowledge base, (2) engagement with stakeholders to close the technological gap, (3) comprehensive ethics and legal review, and (4) integration with public health actions. We also listed potential parties such as academic institutions, government entities, non-government organizations, or private institutions that could be interested as stakeholders. We elaborate important output that needs to be produced, ranging from educational activities to policy reviews. In addition, we identify pivotal beneficiaries of said output to advance PI/PNG test in Indonesia and the importance of providing feedback to stakeholders to ensure sustainability. We envision this policy brief will allow for coordinated approach to improve utilization of PI/PNG tests in Indonesia.

Keywords: genetics, pre-implantation, pre-natal, infertility, in vitro fertilization

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A Study on Digital Transformation of International Travel Health Protocol: A Basis for Global Health Architecture

Nico Gamalliel*, Fona Qorina, Ayers Gilberth Ivano Kalaij, Budi Wiweko Indonesian Medical Education and Research Institute,

Fakultas Kedokteran Universitas Indonesia, Jakarta, Indonesia

Currently, the health sector is dealing with challenges and disruptions in the form of rapid acceleration and improvement in digital health. Indonesia, on its G20 2022 Presidency, proposes the global harmonization health protocols plan as one of the breakthroughs, with the hope that the G20 presidency and current global pandemic will be a momentum to create a legacy towards future global health resilience. This plan will encourage using QR Code technology and a global repository to validate vaccine certificates at the entry-point (i.e., airports) of each G20 country. The principle of this system is to standardize and verify health documents coming from various countries that may vary to meet health requirements in the destination country when a person travels internationally. Thus, it will promote safer and more convenient international travel. The risk of a health data breach on the international scale is posed as a challenge and reluctance in this plan. The adoption of this new system is also highly influenced by the variability of each country's national priorities and its compliance with international policy. Nevertheless, many developing countries have not yet had or developed adequate digital health and health repository systems because it requires significant funding. The inclusion of global harmonization health protocols plan in the priority issues of the G20 forum should be a key in developing digital architecture and transformation in the health sector further. On the other hand, the issue of vaccine equity still should be ensured and highlighted as main focus of current global health intervention.

Keywords: digital, transformation, health, protocol, international

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Agile Health Ecosystem 5.0: Efforts to Democratize the Health System in Preparation of Post Pandemic Era

Kemal N. Siregar^a*, Tegar Septyan Hidayat^b, Maya Arlini Puspasari^c, Dewi Nirmala Sari^d

aDepartment of Biostatistics and Population, Faculty of Public Health, Universitas Indonesia

bB3C Global, Indonesia

cHuman Factors Research Center, Universitas Indonesia

dPolytechnic of Health Ministry of Health Jakarta III, Indonesia

The G20 plays a big role in Covid-19, where this pandemic is still emerging in waves and there is no certainty of an end. The Covid-19 pandemic has had a negative effect on many aspects of life, especially the economic sector, as well as social and health. Here, infectious diseases, non-communicable diseases, and new diseases become more prominent. The various epidemics before the increase coupled with the Covid-19 pandemic together caused a condition called syndemic. While the challenges are large, the capacity of the health system is limited. Multi-dimensional problems of such a disruptive nature need to be faced systematically, and such problems need to be recognized as Complex, Asymmetric, Vague, Erratic (CAVE).

Problem identification: These multi-dimensional health problems need to be recognized with CAVE. Complex: Health problems in the world were complex before the COVID-19 pandemic, with various epidemics of the triple burden of diseases, all of which then became syndemic. Asymmetric: Asymmetry conditions in health services exacerbate health problems, where there is a disparity in access to health in the community. Vague: Health systems are not always able to recognize the immediate emergence of diseases, such as against the emergence of COVID-19. Erratic: Indonesia's experience in early 2020 shows that it is quite difficult to estimate when COVID-19 will emerge, which has led to many response efforts from health systems that are considered inadequate.

Policy recommendations: Based on the results of the analysis of the problem, where health solutions actually exist, until today there are still gaps in the architectural arrangement of the health system, so a solution is proposed that adopts the values of Society 5.0, which focuses on the active involvement of each individual in maintaining health through more massive service personalization in an open health ecosystem. In the architecture of the health sector, the study recommends a proposal called Agile Health Ecosystem 5.0 (AHE5). These recommendations adapt an agile governance approach. The proposal has the character of CAVE, which consists of Collaborative, Adaptive, Visionary, and Experiential. These principles make the Agile Health Ecosystem a policy implementable, both at the global, national, and local levels, where then its implementation optimizes the use of digital technology.

Keywords: Innovation, Agile Governance, CAVE, Society 5.0

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Earmarking Health Tax for Sustainable UHC Financing in G20 Developing Countries Abdillah Ahsanâ*, Dwini Handayaniâ, Krisna Puji Rahmayanti^b, Nadira Amaliaâ

aFaculty of Economics and Business, Universitas Indonesia

bFaculty of Administrative Sciences, Universitas Indonesia

Sustaining global health partnership remains challenging as some countries are still threatened by multiple public health issues. Hence, there should be strong incentives for political leaders to participate in sustaining global and domestic health securities including which is finding alternative funding to sustain country’s Universal Health Coverage (UHC).

We propose earmarking the health tax to finance the UHC in G20 developing countries as public health challenges in developing countries are mainly attributed to non-communicable diseases (NCD) risk factors. Health tax is expected to decrease the NCD risk factors while also increasing the government revenue to finance the development agenda.

Keywords: earmarking, global health architecture, health tax, universal health coverage

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G20 Academy of Science: A Collective Effort of G20 Members and the World in Handling Global Issues

Munawar Khalil^a* dan Mohammed Ali Berawi^b

aFaculty of Mathematics and Natural SciencesUniversitas Indonesia

bFaculty of Engineering, Universitas Indonesia

Science 20 (S20) is one of the engagement groups in the G20 presidency that acts as a forum for academics and scientists from all G20 member countries to gather and discuss solutions to various global issues. Since its establishment, S20 has consistently produced various science- based policy recommendations to leaders of G20 member countries in their efforts to solve world problems as outlined in the S20 communique. However, the implementation of the results of the discussion of the S20 forum to the public and the wider community is still relatively low. In addition, the translation of the S20 recommendations that are agreed upon annually into a concrete manifestation in the form of deliverables is also still considered less than optimal. Then, the collaboration scheme between G20 member countries in terms of the development and utilization of science is also still a big challenge. Therefore, the establishment of the "G20 Academy of Science" institution is considered an ideal solution that can be taken by the Indonesian government to put forward the S20 function in advocating for science as a basis for policy making by world leaders, especially G20 member countries in solving global issues. The establishment of the G20 Academy of Science is also expected to facilitate n-helix collaboration between scientists and academics, the government as policy makers, and industry or business actors. This is important to ensure that policy duplication and technology transfer can be implemented in other developing countries. The G20 Academy of Science is also expected to become a legacy of the G20 Indonesia Presidency in 2022 that can play a role in bridging S20 with other Engagement and Working Groups, both in SHERPA and Finance Tracks, to produce policy recommendations that are more optimal and can be implemented.

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Digital Resilience Aspect of Global Data Flow Governance in Strengthening Digital Economy

Edmon Makarim

Fakultas Hukum Universitas Indonesia

Data has become an important production factor for the digital economy in the big data era.

Data could be collected, processed, managed, and redistributed towards the parties outside of the state in which the data subject is situated, including transfer to big tech corporations and other countries through state surveillance. However, there is no single, unified, global policy that regulates about on how data should be moved across the border with different degrees of legal protection. This policy brief addresses the practical question of how cross- border data transfer should be concretely regulated to protect the national interest and Indonesian digital resilience, and to address how the aspect of ‘trust’ is implemented concerning cross-border data flow to support the national economy. This policy brief supports that each individual state has its own sovereignty to determine its own approach to governing the data with respecting mutual trust among the states, in managing the data of its own citizen as well as the foreign citizens. Indonesia must formulate and advocate, within the platform of G20, the personal data protection policy that is focused on national interest and independence in protecting national resilience. Three aspects will be addressed in this policy brief, that is, the urgency of the cross-border data transfer norm, the determination of ‘adequacy requirement’ in the context of Indonesia and G20, and the cooperative efforts in supporting the extraterritorial legal enforcement through administrative, civil, and criminal law framework.

Keywords: data free flow with trust; data transfer; national resilience; digital sovereignty, personal data protection

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Digitalization of Staple Foods Supply Chain to Minimize the Impacts of Disruption Ratih Dyah Kusumastuti*, Nurmala, Juliana Rouli

Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia

The agricultural sector plays an essential role in maintaining food security in a country. This is related to the second sustainable development goals (SDGs), namely zero hunger, which aims to eliminate all forms of hunger and malnutrition by the year 2030. However, disruptions to the supply chain of staple foods significantly impact food security and the goal of zero hunger. Disruptions of the staple foods supply chain may be due to the characteristics of the agricultural food supply chain, namely perishability (the product quality changes as the foods move along the supply chain), seasonality (the crops are produced seasonally), long supply lead time (long waiting time for production), and uncertainty of the crop yield caused by the weather condition. In addition, disaster conditions, such as the COVID-19 pandemic, can also disrupt the supply chains because of the various forms of social restrictions implemented in the community. The length of the staple foods supply chain and the many parties involved (and sometimes across countries) also causes many problems along the chain, such as price fluctuations and the scarcity of certain commodities in certain periods. Therefore, the staple food supply chain must be resilient to prepare, respond and recover from disruption, and restore all the activities before the disruption, hence minimizing the impacts on society. The resilience of the staple food supply chain can be improved by implementing digital technology, especially blockchain technology, that can increase visibility/transparency and traceability to prevent fraud and hoarding of staple foods along the supply chain. The National Food Agency (BPN) can be the party that builds the blockchain infrastructure of the staple food supply chain and determines various standards and consensus within the blockchain. The participants are various actors involved in the staple foods supply chain. All participants are required to record their transactions on the blockchain to ensure the transparency of staple food flow information, from harvest to consumption. Hence, if a disruption occurs in the supply chain (such as crop failure), it can be immediately anticipated, and its impacts on the community can be minimized. However, the implementation requires enforcement from the Government so that all participants are willing to share information on staple food flow along the supply chain. It also needs negotiations between G20 countries on the information transparency of staple foods flows across countries.

Keywords: Staple foods, Blockchain, Disruption, Supply Chain, Digital Technology

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Positioning the Supply Chain Digitalization in G20 Policy Sutanto Soehodhoâ*, Nahryâ, Erwin Razaâ, Zaroniâ

aFaculty of Engineering, Universitas Indonesia

bIndonesian Chamber of Commerce and Industry (KADIN)

cPT Harum Jaya Mineral (Mining Logistics)

*correspondence author: [email protected]

Economic globalization has made major breakthroughs in the global supply-chain system.

Various commodities move from surplus areas to cross-border undersupplied areas to meet human needs while revitalizing the economic system. On the other hand, not only does the condition of the supply chain still show inefficiency and high-cost economy, but the Covid-19 pandemic or the Russia-Ukraine war crisis has also signaled the vulnerability of this system.

A breakthrough is needed to create a more reliable system, and digitalization is a great hope that can overcome various existing obstacles.

Indonesia has taken a position in the G20-2022 Presidency, and has a great role and opportunity to raise the issue of supply-chain digitalization in the realm of all member countries and even non-members. Domestic and international supply chain issues are related to the industrial and trade sectors, where the logistics sector plays a role in commodity movement. The upstream to downstream process is currently experiencing many obstacles, starting from the administrative process to the delivery of goods at the user point, including human resources issues. This leads to a high-cost economy.

The Single Window (SW) concept emerged as a solution to simplify supply-chains between countries, especially for import-export goods. In its development, the focus of G2G (Government to Government) relations in the SW concept is developed into B2B (Business to Business). Digitalization is the backbone of the SW concept.

This study is intended to propose policies to improve digital-based supply chain processes in SW systems at national and global levels. Through FGDs and in-depth interviews with various stakeholders, a gap-analysis was carried out which resulted in 3 (three) digitalization policy formulations for relevant supply chains being raised in the G20-2022 forum, namely a joint policy among G20 member countries to formulate a Single Window Supply-Chain system (SWSCP); Policies that support the implications of the SWSCP process by building a common platform in the form of Big Data Center and Analytics (BDCA) both at global-hub and local-hub levels; and the Reform of Digital Resources (RDR) Policy to materialize the two policies with various forms of mutual strategic financing for infrastructure and facilities as well as human resource development. The report closes with rationalization so that policy recommendations can be accepted by the G20-2022 forum.

Keywords: digitalization, logistics, supply-chain, single-window, SWSCP, BDCA, RDR

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The Empowerment of Women SMEs Entrepreneurs in Post Covid-19 Pandemic LG. Saraswati Putri* dan Iswahyudi

Faculty of Humanities, Universitas Indonesia, Depok, Jawa Barat

The Covid-19 pandemic has significantly impacted various activities, especially economic activities in the informal sector such as Micro, Small, and Medium Enterprises (MSMEs).

During the pandemic, we found MSMEs owners as a group of economic actors vulnerable to the impact of the Covid-19 pandemic. That is due to the many problems faced by MSME owners. Problems met range from declining sales and production, difficulty in distributing products due to government social restrictions policy, and difficulty accessing funding from financial institutions to low financial and digital literacy. These various impacts are experienced more severely by women entrepreneurs of MSMEs. In this case, because women are the majority of MSME actors, this policy brief will focus on the challenges, problems, and opportunities for empowering women MSME owners, especially ultra-micro business owners, to recover and develop after the Covid-19 pandemic. This policy brief will propose a strategy for women's empowerment using a capability approach (Sen & Nussbaum) and then push the government on the following policy agenda: (1) provide grant-based financial stimulus; (2) ensure inclusive financial and digital access for women MSME owners; (3) establishing a community-based ecosystem to increase the capacity and capability of women entrepreneurs of MSMEs that enable sustainable growth. In addition to encouraging the recovery and growth of MSMEs, this policy recommendation aims to promote gender equality. The ultimate goal is to encourage the government to produce well-being.

Keywords: Capability; Ultra-micro enterprises, Gender equality, Financial and digital inclusion, Well-being

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Policy Recommendations in Renewable Energy Sector: Regulation, Transparency, and Public Participation

Vishnu juwonoâ*, Althof Endawansa^b, Violita Sinda Arindaâ, Juditha Danuvanyaâ, Muhammad Rifqi Alaydrusâ, Janiscus Pieter Tanesabâ, dan Adiwarman^c

aFaculty of Administrative Sciences, Universitas Indonesia

bFaculty of Economics and Business, Universitas Indonesia

cBureau of Transformation, Risk management, Evaluation Monitoring, Universitas Indonesia

Based on the BP Statistical Review of World Energy (2022), the share of primary energy consumption comes from renewable technologies in the form of a combination of hydropower, solar, wind, geothermal, wave, tidal, and modern biofuels (traditional biomass – which can be an essential energy source in the world. low-income countries). In 2019, around 11% of global primary energy came from renewable technologies. This fact illustrates that the economic potential of renewable energy is tremendous. However, this high economic potential raises the possibility of corruption in the renewable energy sector. This is evidenced by the fact that countries in the world, both developed and developing countries such as Mexico, Kenya, Malaysia, Italy, and Australia are experiencing corruption in the renewable energy sector. One form of effort to anticipate corruption in the renewable energy sector is to make financing standards. One of the examples used in this policy brief is The Global Energy Efficiency and Renewable Energy Fund (GEEREF). GEEREF is a public-private partnership (PPP) designed to maximize private finance leveraged through public funds funded by the European Commission and managed by the European Investment Bank (EIB). However, GEEREF still has various shortcomings in terms of regulation, transparency, and participation. This Policy Brief provides recommendations for anti-corruption policies in the renewable energy sector. The data used in this policy brief comes from a study of various kinds of literature and in-depth interviews with Indonesia Corruption Watch (ICW), Transparency International Indonesia (TII), and Publish What You Pay (PWYP) Indonesia.

Based on the results of an analysis of various kinds of literature, the results of in-depth interviews, and the shortcomings of GEEREF as a best practice financing standard in the renewable energy sector, there are several points of recommendation for anti-corruption policies in the renewable energy sector for G20 countries which are divided into three aspects, including regulation, transparency, and public participation.

Keywords: Anti-Corruption, G20, Public Participation, Regulation, Renewable Energy, Transparency

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Women MSME Sustainable Strategy against Marketplace Competition: Cooperation and Inclusive Internet

Palupi Lindiasari Samputra*

National Resilience Studies Program, School of Strategic and Global Studies, Universitas Indonesia

The acceleration of digital transformation for MSMEs is a priority issue for Indonesia and is also the result of the G20 Italy 2021 agenda, which intends to overcome the impact of the COVID-19 pandemic. There are still a few MSMEs that go digital (25.92%), especially those using the marketplace, only 21.64%. Therefore, the government is encouraging massively go- digital MSMEs in the marketplace. However, current policies generally orient towards MSMEs without considering gender. Women's MSMEs play an essential role in state and family income, reducing poverty and absorbing labor. That is a benchmark for MSMEs and women as Game Changers for the country's economic resilience. Digital transformation after the COVID-19 pandemic brings new problems for women MSMEs to adapt and maintain business continuity in the market. In addition, the issue of the digital divide makes its robust digital infrastructure and technology get more significant economic benefits from e- commerce. This policy brief aims to recommend digital economic policies for the sustainability of women's MSME businesses by understanding the obstacles and challenges in utilizing the marketplace—a survey method using purposive sampling technique on 103 women MSMEs using the marketplace and interviews with Kominfo. Women MSMEs face an imbalance in business competition in the market, an imbalance of burden (speed and expensive internet costs) with benefits, and the additional burden of household work. The first recommendation is to transform the competitiveness paradigm into cooperation as a joint effort based on the kinship between MSMEs with complementary digital and LE (Large Enterprises) platforms. Gotong royong in the family is very much needed to support women's MSME businesses. Second, there is a need for an inclusive national internet roadmap from club good to the public good and to encourage the social contribution of developed countries in the G20 with an approach to realizing easy access, speed, and affordable internet costs for all member countries. Third, expanding global market access in the marketplace to increase the contribution of women's MSMEs to GDP through an inclusive global marketplace program.

Keywords: Gotong-royong,inclusive internet, Women's MSMEs, Marketplace

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Global Value Chain Inclusivity and Digital Entrepreneurial ship

Erkko Autio^a, Yothin Jinjarak^b, Yoshua Caesar Justinus^c, Donghyun Park^b, Cynthia Petalcorin^b, Dandy Rafitrandi^d, Mohamad Dian Revindo^c*, Willem Smit^e, Shu Tian^b

aImperial College Lodan

bAsian Development Bank

cUniversitas Indonesia

dCentre for Strategic and International Studies

eAsia School of Business/Fulbright University Vietnam

In an ever-globalizing world, global value chains (GVCs) and digitalization have become the main feature of today’s global trade. These two phenomena have stood underneath the trade fluctuations we are currently witnessing, from supply chain shocks following the global health crisis to geopolitical conflicts in Ukraine and many parts of the world.

While GVCs have been global trade’s main feature ever since the rapid falling of transportation costs back in the mid of 1800s, the prime mover has always changed. Currently, digitalization is dubbed the new prime mover of today’s GVCs. The digital technologies has been widely adopted in virtually every part of the world, resulting in a phenomenon wherein workers in one nation provide services for other nations. The speed of digitalisation of it is also accelerating, but not at the same pace everywhere. This, in turn, leads to widening digital divides between and within countries. As a result, this may disproportionally harm local small and medium sized enterprises (SMEs) in digitally lagging host markets. Without proper policies, these actors, important for their local economies, could be denied access, dismissed from or downgraded in their participation in digitalized global value chains (GVCs).

This policy brief reviews the literature and analyses entrepreneur-level, national-level and international trade-dyadic data to provide 11 evidence-based policy recommendations aimed at enhancing GVC inclusivity through (1) supra-national level alignment, (2) country-level policy adjustments and (3) firm-level interventions to stimulate digital entrepreneurship among SMEs.

Keywords: global value chains, digital entrepreneurship, inclusive

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Sustainable Policy Framework and Regulation Development of Crowdfunding Services in Agriculture Sector to Support National Economy and Protecting the Interest of

Investors’ and Farmers’

Shalahuddin Haikal*; Zuliani Dalimunthe; Rachmadi Agus Triono Faculty of Economics and Business, Universitas Indonesia

OJK as the regulator in the financial sector has issued POJK No. 37/POJK.04/2018 which was later replaced by POJK No. 57/POJK.04/2020 regarding Securities Offering Through Information Technology-Based Crowdfunding Services. Since the issuance of these two regulations, there have been 196 issuers and 93,777 investors with a nominal investment of Rp 413 billion. The three largest sectors financed through crowd funding mechanisms (Equity Crowdfunding, ECF or Securities Crowdfunding, SCF) are restaurants and culinary arts;

security and service; and shopping and retail. The agricultural sector has not made much use of this financing scheme, even though agriculture is an important sector in the Indonesian economy. ECF/SCF has the opportunity to become a mechanism to support agriculture sector financing. However, the current regulations do not provide much protection for investors from investment risk. Regulatory modifications are needed so that this crowdfunding financing scheme can support the agricultural sector while minimizing investor risk to a tolerable level. The research recommendation is to modify the ECF rules by providing Alternative Crowdfunding Services in the context of financing agricultural activities. The investment features in the ECF/SCF can be designed to match the crop-harvest period of the agricultural product being financed. The alternative crowdfunding service proposed here is to use a cooperative as the issuing legal entity and add a warehouse receipt system (SRK) to function as collateral. Activities that deserve to be funded are of course various agricultural commodities that meet the criteria can be stored in warehouses in the implementation of the warehouse receipt system. The nature of the funds needed to finance agricultural production activities are generally short-term and small in nominal. Cooperatives can act as publishers which represent a number of farmers who are members of the cooperative. In this way, it is hoped that the crowdfunding service will get its identity as a crowd, both on the side of investors and on the issuer’s side. Through this model, it is expected to strengthen the Social and Solidarity Economic Model and jointly recover from the crisis and be stronger.

Keywords: crowd funding mechanisms; agricultural cooperative, warehouse receipt system (SRK)

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Construction of Infrastructures with Added Value and Development of Industrial Area for National Economic Growth Acceleration

Mohammed Ali Berawi^a*, Mustika Sari^b, Christianto Sariputra^b

aDepartment of Civil Engineering, Faculty of Engineering, Universitas Indonesia

bCenter for Sustainable Infrastructure Development (CSID), Universitas Indonesia

Infrastructure development is one of the crucial keys to promoting economic growth and equitable national development. Therefore, the Indonesian government continues to make efforts to develop infrastructure throughout its territory. Indonesia has a significant raw material commodity, is strategically traversed by international shipping lanes, and has the fourth largest population in the world. These potentials can be utilized to increase the growth of Indonesia’s industrial and manufacturing sectors by developing industrial estates that increase competitiveness. The availability of infrastructure that supports the development of industrial estates can be a strategy to spur the growth of industrial sector in Indonesia. This study examines the potential for industrial and manufacturing development in Indonesia and infrastructure development to support the development of industrial estates. The industrial potential of each economic corridor is identified through an analysis of the contribution of GDP and the characteristics of the province in each economic corridor. Furthermore, an investigation is carried out that considers the potential of the region, the human development index, the availability of infrastructure, and the product complexity index in each province to identify value-added industries. Priority plans for the development of connectivity infrastructure and supporting industrial infrastructure are developed based on three leading indicators, namely investment costs, development time, and the importance of the development impacts. The recommended direction of infrastructure development to support the development of industrial estates in various regions in Indonesia is expected to be used in formulating public policies and regulations related to the focus of infrastructure development and industrial development and in economic corridors in Indonesia.

Keywords: Infrastructure, industrial area, economic corridor, priority design

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Improvement of Micro, Small, and Medium Enterprises (MSMEs) through Green Open Spaces (RTH) Utilization with Crowdfunding-based Financing Scheme

Mohammed Ali Berawi^a*, Vanana Yovanca Sri Rejeki Lumbantobing^a, Agatha Vania Salim^b, Mustika Sari^b

bCenter for Sustainable Infrastructure Development (CSID), Universitas Indonesia

Micro, Small, and Medium Enterprises (MSMEs) are the sector that contributes the largest GDP in Indonesia now, with a contribution of more than 60%. Therefore, the government is trying to accelerate the post-pandemic economic recovery through the MSME sector. On the other hand, the government is promoting the development of public infrastructure, including green open spaces (RTH) as social facilities that also support the preservation of the natural environment. The green area in the green open space has the potential to be utilized and developed as a center for MSME activities from the agricultural and processing sectors.

Therefore, this study aims to analyze the potential of MSMEs by using the land in green open space to drive the economic activities of the surrounding community. Furthermore, MSME access to financing to build a business is still one of the challenges in developing small-scale businesses. To overcome this financing problem, this study also proposes a financing scheme that involves public funds through an internet-based platform called crowdfunding. This study presents recommendations related to land use in green open space as a production center for small businesses and emphasizes the use of alternative crowdfunding-based financing schemes, with Kalijodo DKI Jakarta RTH as a case study. This recommendation is conveyed with the hope that the Indonesian people can carry out small business activities by utilizing the potential in public infrastructure.

Keywords: crowdfunding, MSME, Green Open Space

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Improvement of Micro, Small, and Medium Enterprises (MSMEs) through Green Open Spaces (RTH) Utilization with Crowdfunding-based Financing Scheme

Rajeev Kherâ*, Arun S. Nairâ, Mohamad D. Revindo^b, Dandy Rafitrandi^c, Yoshua Caesar Justinus^d, Yudhi Dharma Naulyê, Andreas Freytag^f

a Research and Information System for Developing Countries

b National Resilience Studies Program, School of Strategic and Global Studies, Universitas Indonesia Bank

c Centre for Strategic and International Studies

d Institute for Economic and Social Research, Faculty of Economics and Business Universitas Indonesia

eMinistry of Finance, Republik Indonesia

f Schumpeter Center, Friedrich Schiller University Jena; University of Stellenbosch, STIAS, CESifo Research Network

The rules-based Multilateral Trading System (MTS) is in need of reforms. While the rules as such are widely accepted as the welfare enhancing nature of trade is principally recognized and endorsed by all member countries, they are not obeyed thoroughly and progress in liberalization is even more unlikely. Reasons include the consensus principle held by WTO leading to stuck negotiations as well as the rise of bilaterals and plurilaterals. The WTO Dispute Settle Mechanism stalemate has proved to be a hindrance in creating a speedy resolution of trade frictions.

We believe that only an agile and flexible rules-based MTS with resilient procedures can respond dynamically and effectively to the multitude of challenges faced by the global economy that is in a constant state of flux due to reasons—both economic and non-economic.

While these issues may be addressed through plurilateral and regional trade agreements, them being regional in nature may likely lead to the global trade fragmentation, with each region playing by different rules. This is where MTS may gain its ground as the world’s trade administrator. The moot point becomes how to ensure the assimilation of multilateral trade negotiations as well as the Joint Statement Initiatives (JSIs) and regionals to undertake within the WTO itself.

To improve the WTO’s effectiveness, we suggest a hierarchical framework for plurilateralism within the MTS to support the introduction of more developing nations. Within this framework, potential members are presented with an opportunity to join the JSIs based on their preparedness to do so and then gradually enter the different stages. We also propose a comparative analysis of the major plurilateral bodies to learn the complexity faced by other bodies and improve the WTO’s consensus-based decision-making process. To strengthen the rules-based MTS, we propose a G20 pledge against discriminatory trade policies along with a mechanism facilitated by G20 and the regional blocs to effect WTO reforms.

Keywords: dispute settlement mechanism, joint statement initiatives, WTO reform, rule-based, multilateral trading system

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Accelerating Human-Based Global Energy Transition: The Implementation of Carbon Capture and Utilization (CCU) Technology

Munawar Khalil^a*, Inaya Rakhmani^b, dan Cindy Rianti Priadi^c

aFaculty of Mathematics and Natural Sciences, Universitas Indonesia

bFaculty of Social Science & Political Science, Universitas Indonesia

c Faculty of Engineering, Universitas Indonesia

G20 member countries account for about 77% of the world's total energy consumption and 81% of total global emissions. The transition to sustainable new renewable energy (EBT) is crucial for these countries to reduce global warming. In recent years, G20 member countries have drawn up agreements contained in the ETWG issue notes and joint communiques, including the importance of energy transition towards affordable, inexpensive, and sustainable low-emission energy systems (Osaka Declaration of the 2019 G20 Summit), through research and development and cross-sectoral and inter-disciplinary collaboration (G20 Summit 2021). However, the translation of the results of the agreement into a concrete form is still not optimal. Indonesia as president of the G20 2022 has a strategic role not only to promote the energy transition towards a sustainable and systemic recovery, but also in accordance with the existing social system and protect the most vulnerable people. The people-oriented energy transition through Carbon Capture and Utilization (CCU) technology is proposed as the main strategy not only to accelerate the global energy transition towards the use of sustainable energy sources, but also to reduce the impact of global warming and to ensure the social system that sustains it. CCU technology captures CO2 emissions generated from fossil-based power plants or from other manufacturing industries for conversion into alternative fuels and high value derived chemical products such as formic acid, ethanol, methanol, methane gas and hydrogen. This conversion process can be economically carried out using electrochemical techniques with the help of NRE. CCU can facilitate a just energy transition (just transition) to mitigate its destructive impact on vulnerable groups (poor people, women, children, people with disabilities and other minorities) and the environment because it can be directly integrated into existing fossil fuel-based technologies while undergoing a natural transition. gradually towards EBT

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Energy Transition to Net Zero Emission Change the World's Energy Governance Rinaldy Dalimi

Faculty of Engineering, Universitas Indonesia correspondence: [email protected]

Net Zero Emission (NZE) is a common global target that will be achieved only by substituting Fossil Energy to Renewable Energy with a Demand Side Management approach. Later each individual will be able to produce their energy needs, called individual power producers (IPP), from Renewable Energy (ET). The Energy Transition period to the NZE will not be the same in every country, because it will be influenced by the energy potential it has, energy policy, technology controlled, level of economy, currently produced emissions, geographical conditions of the country, and ability to predict technological developments in the era of net zero emission. With the IPP in the future, there will be no need for electric power transmission networks, large power plants, and substation equipment, and the electric power system will completely change from the Alternating Current (AC) system to Direct Current (DC). Also, the change from combustion engine cars to electric cars will result in a drastic drop in fuel demand. As a result, there will be major changes in the energy sector, which will have a major impact on the Manufacturing Industry, which can be called the second Industrial Revolution.

Therefore, to get through the Energy Transition period, countries in the world must work together so that no country becomes a victim of change. To go through the transition process, the International Energy Transition Agency under the United Nations is needed whose task is to formulate the Energy Transition Mechanism, because the second industrial revolution will have an impact on the world economy as a whole. Indonesia also needs to establish a National Energy Transition Agency so that the steps taken during the Energy Transition period do not disrupt energy security and the national economy. In order to get through the energy transition period, Indonesia does not need to follow the ways of other countries, especially regarding the plan to turn off steam power plants, because coal is Indonesia's main energy source, and there is no need to build nuclear power plants because it will increase our dependence on other countries. Therefore, Indonesia must have an Energy Transition Mechanism that is suitable for Indonesia.

Keywords: Net Zero Emission, Individual Power Produces, Energy Transition Mechanism

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Optimalization of Power Generating Capacity Plan to Increase the Utilization of Renewable Energy Sources

Mohammed Ali Berawi^a*, Teuku Yuri M. Zagloel^b, Joanna Fransisca^c, Agatha Vania Salim^c, Mustika Sari^c

bDepartment of Industrial Engineering, Faculty of Engineering,, Universitas Indonesia

cCenter for Sustainable Infrastructure Development (CSID), Universitas Indonesia

The electric power system has a vital role in promoting economic growth. On the other hand, the increasing environmental impact in recent years has prompted most countries to reduce their greenhouse gas emissions. One way that can be done to reduce greenhouse gas emissions is to increase the share of renewable energy sources. In Indonesia, the Java-Bali electricity system is the most extensive; in 2019, the electricity demand for the Java-Bali system was 177,692.43 GWh with a peak load of 40,059.74 MW. Currently, the energy mix in Java-Bali is still dominated by coal at 70% and natural gas at 21.22%, while renewable energy is only 7.71%, and the rest is still using fuel at 0.14%. Therefore, to increase the use of renewable energy sources and reduce the use of fossil fuels in meeting the need for electrical energy, the government has set a target for the energy mix in Indonesia for renewable energy of 23% in 2025 and 31% in 2050. This study aims to obtain the scenario of planning for the development of generating capacity with the optimal use of renewable energy sources at the most efficient cost, taking into account the potential of energy sources and the target of the energy mix. The results of this study show that the development planning scenario with a total additional generating capacity of 15,035 MW is the scenario with the most optimal utilization of renewable energy sources and the lowest cost, with an estimated total investment cost of 901 trillion Rupiah. With this scenario, the composition of renewable energy in the Java-Bali system can be increased to 16.95% in the next ten years.

Keywords: new renewable energy, energy transition

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The Smiling Curve Mapping and Strategy for Solar Panel Industry Development in Indonesia Which Has Value Added in Energy Transition Era

Eko Adhi Setiawan^ab*, M Iqbal Ramli^b

aEnergy System Engineering, Faculty of Engineering Universitas Indonesia

bTropical Renewable Energy Center and Energy S, Faculty of Engineering Universitas Indonesia

Indonesia has made major planning to build renewable energy power plants as stated in the Electricity Supply Business Plan (RUPTL) 2021-2030, which is 51% where solar power plants will provide a portion of 4.68 GW. Nevertheless, the growth in the number of installed capacities is proceeding very slowly and lagging some neighboring countries in ASEAN. This happened due to several things: First, the electricity system of Java, Madura and Bali – PLN stated that it is currently in a condition of over-supplying electricity from the supply of coal- fired power plants which is the effect of the 35,000 MW government program several years ago. Therefore, PLN severely limits the installation of electricity from rooftop solar power plants. Second, the development of the solar power plant industry from upstream to downstream is still focus on assembling stage, thus a small amount of value added obtained by the state. This aspect will be discussed in the following policy brief. The smiling curve will show how the relationship between value added and the solar panel technology supply chain.

This curve can help the development strategy of the solar panel industry can be carried out more systematically also. Third, the lack of information that flows to the public/citizens, they do not know what the benefits of installing a rooftop solar power plant are. Finally, there is no political pressure from parliament, so the ESDM regulation related to the PV rooftop does not get a positive response from state electricity companies.

Keywords: Smiling curve, Solar panel, Renewable Energy, Value Added, Electricty

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The Role of G20 Countries in Utilizing Biodiversity to Achieve The 2015 Paris Agreement Vision and SDGs

Andreas Pramudiantoâ*, Dony Abdul Chalidâb, Halvina Grasela Saiyaâ, Yosmina Tapilatu^c, Priyaji Agung Pambudiâ, Fajra Farhanâ

aSchool of Environmental Science, Universitas Indonesia

bFaculty of Economy & Business Universitas Indonesia

cNational Research and Innovation Agency

The G20 Summit in Rome, Italy once agreed on the importance of biodiversity. However, there was an important change when Indonesia became the G20 Presidency. The Russia-Ukrainian war has changed the pattern of the role of biodiversity, especially food and energy, into one of the important issues affecting the world economy. The dependence on fuel prices for energy and food sources in the world, especially those related to imports and exports, has become unstable on the world market. Meanwhile, the demand for energy from fossil fuels has also skyrocketed. This situation will certainly affect the world's long-term programs such as the Sustainable Development Goals (SDGs) and the vision of the 2015 Paris Agreement. As the G20 Presidency, Indonesia has a high wealth of biodiversity and can take advantage of this condition to help stabilize the world's food and energy markets. Biodiversity must be utilized in a unified ecosystem in which it is composed of species and genes. Thus, biodiversity is a regional and global unit that cannot be limited by territorial boundaries. For this reason, biodiversity-based food and energy policies must be a concern for world economic development policies. Meanwhile, energy from fossil fuels must also be changed by increasing the energy mix such as the B-20. It is in line with the vision of the 2015 Paris Agreement. In this way, Indonesia will set an example for G20 countries to deal with food and energy issues based on biodiversity.

Keywords: biodiversity; food; energy; SDGs; Paris Agreement 2015

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Electric Energy Sector Transition and Mid-Term Economic Consequences Djoni Hartono^a*, Widodo Wahyu Purwanto^b, Nadhilah Reyseliani^c, Ahmad Komarulzaman^d

aDepartment of Economics, Faculty of Economics and Business, Universitas Indonesia, Indonesia

bResearch Cluster on Energy Modeling and Regional Economic Analysis, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Indonesia

cSustainable Energy Systems and Policy Research Cluster, Chemical Engineering Department, Faculty of Engineering, Universitas Indonesia, Depok, 16424, Indonesia

dDepartment of Economics, Faculty of Economics and Business, Universitas Padjadjaran

The energy transition is urgently required to halt climate change, as stated by the Paris Agreement, recorded in the Updated Nationally Determined Contributions, as well as the Indonesia Long-Term Strategy for Low Carbon and Climate Resilience 2050. This policy brief aims to analyze the energy transition in the electricity sector required to attain targeted emission level as well as to measure the economic impact of implementing economic policies in various sectors. To answer the first objective, this study applied the UI-ETM energy transition model based on The Integrated MARKAL EFOM System – TIMES model, while to answer the second objective, the Dynamic Computable General Equilibrium model was applied to analyze the economic impact of the energy transition model results.

The results show that in order to maintain the earth’s temperature below 1.5 degrees in the electricity sub-sector, the role of gas energy is required as a bridge to actualize the clean energy era as well as to achieve up to 86% renewable energy share by 2060 with key technologies of BECCS, utility scale solar PV., and energy storage. As one would expect, this causes an increase in cumulative investment costs of up to 2.5 times compared to business as usual (BAU). Meanwhile, the results also show that the implementation of a carbon tax $2 per tonne of CO2-as set by the government-and also $44 per tonne of CO2 to reduce emissions by 25%- 30% in the electricity sector has different economic impacts, depending on the choosen recycling policy option. Implementation of carbon tax coupled with recycling policies changes several macroeconomic indicators, such as GDP. In addition, carbon tax also has an impact on energy intensity and carbon emissions.

Based on the results of the energy transitions modelling and their impacts, this study presents several policy recommendations which include: (i) the importance to rise renewable energy targets in KEN and synergize them with climate change mitigation commitments and their derivative regulations, (ii) prioritize midstream gas infrastructure planning, (iii) develop strategic plan, funding, and international cooperation for utility-scale solar PV and BECCS, (iii) improve PLN’s financial capability in anticipation of rising power generation investment, (iv) consider to redistribute the revenue received from carbon tax into the economy followed by appropriate revenue recycling strategy; (v) implementation of carbon tax with revenue recycling policy that mainly allocated on renewable energy investment can be considered as

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one policy options; and (vi) the importance of the policy mix (especially in revenue recycling) to achieve optimal results and prioritize multi-objective optimization compared to policy options in a trade-off situation.

Keywords: energy transition, emissions, TIMES model, general equilibrium model, policy synergies

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Responsive and Adaptive Policy of Marine Pollution Mitigation Towards A Global Sustainable Ocean

Lin Yola^a*, Komara Djaja^a, Eric Chan Wei Chiang^b

aNational Resilience Studies Program, School of Strategic and Global Studies, Universitas Indonesia

bFaculty of Applied Sciences, UCSI University, Malaysia

The rapid economy and development intensively cause environmental degradation, including marine litter due to the poor land and city waste management, improper planning and development of coastal, sea and islands. It is environmental problem that relates to economic force, social well-being, and public policy. The management and innovation of marine litter, especially marine plastic debris and microplastics, often does not reflect the economic benefits of the circular economy but brings continues issues to the environment and worsens climate change. Marine pollution is a global and transboundary issue, thus the policy based on the empirical transboundary studies among the actors and stakeholders in the respective field is a recommended step for mapping a responsive and adaptive policy of marine pollution mitigation towards a global sustainable ocean. Some Indonesian coastals were discussed as case, with discussion on other Asian countries as reference. The preliminary finding pinpoints that the development and coordination of policy, capacity building, research and innovations are the prioritied scope for mapping the policy brief and action plan for marine pollution mitigation for the G20 decision maker. Currently, G20 has made commitments to tackle the marine litter, as in ‘the G20 Action Plan on Marine Litter’ discussed in G20 Hamburg Summit 2017 and Japan 2019 Summit. Therefore, this policy brief contributes a significant recommendations on marine pollution mitigation in Indonesian context towards a global sustainable ocean

Keywords: Responsive and Adaptive Policy; Coastal and Islands; Sustainable Ocean; Marine Pollution;

Transboundary