Indonesia Calls for Just Global Economy and Stronger Cooperation

Developing countries need to enhance cooperation as geopolitical competition and economic fragmentation continue to rise in the past few years.

IDXChannel - Developing countries need to enhance cooperation as geopolitical competition and economic fragmentation continue to rise in the past few years.

This was conveyed by the Indonesian Vice Foreign Minister, Pahala Nugraha Mansury, at the High-Level Conference Commemorating the 60th Anniversary of the United Nations Conference on Trade and Development (UNCTAD) held in Bandung on 14 May.

The event, which was also attended by Ambassadors of friendly countries, international organizations, Ministries/Institutions, universities and the general public, aimed to discuss the role of UNCTAD and identify cooperation opportunities that can be utilized by Indonesia.

In his keynote speech, Vice Minister Pahala conveyed five main points that need to be considered in formulating a long-term global development agenda.

First, the need to strengthen economic integration and cooperation. He said that the number of trade barriers has increased almost 3 times since 2019. The increase could result in a 7% reduction in global GDP in the long run.

Second, a just energy transition and economic transformation. Pahala said that the energy transition from fossil fuels requires critical mineral resources owned by many developing countries.
The Vice Minister emphasized that developing countries must obtain maximum benefits from the processing of these mineral resources, through processing that can increase added value and make them an important part of the global supply chain.

Third, ensure access to finance and technology that supports the achievement of sustainable development and just transition. He said that developing countries need investment by four times until 2030 to achieve a net zero economy. For this reason, it is necessary to mobilize funding, both from the government and the private sector, including innovative financing.

Fourth, build a stronger supply chain. He said the situation in the Middle East has caused supply chain disruptions that can trigger inflation, food insecurity, and decreased growth for developing countries. Therefore, it is necessary to strengthen and diversify supply chains, including finding alternative sources of energy, food, and other commodities; technology development to support domestic production; and infrastructure development to strengthen connectivity.

Lastly, development cooperation. The Vice Minister conveyed the importance of development cooperation in achieving sustainable development through financing cooperation, capacity building, and technology development and transfer. (WHY)