right, future new center of the country's new multi $1000000000.00 capital city, built from scratch in the jungle. critics say the unfinished megalopolis is a waste of money. it's champions say it reflects the country's new found confidence and growing strength. the world is changing. economic and geo political plants are shifting and indonesia set to have an increasingly prominent role in the new global order into these are, is probably one of the most important, but least on this. the countries in the world. indonesia is a fast archipelago of more than $17000.00 items with hundreds of ethnic groups in languages. with more than 280000000 people, it's the world's 4th most populous country. is the largest muslim population, and is the world the 3rd largest democracy behind the us and india. diverse democratic and developing fast. indonesia is rise as be notice from beijing to

washington. it's a natural interlocutor. strategically speaking between the west and china. in this episode, we'll consider why indonesia matters so much without indonesia, that wouldn't be enough nickel saw for that too because for energy storage for a lot of these teeth. that ology is probably gonna use the transitions. and we talked to indonesia as long as serving finance minister and ask what the country must do to stay on the path to long term success. i think the history of many sense the comically, as well as policy lead, the see a lot of countries in the middle. that's why that is up through a made an income attract all coming up on the latest business beyond behind rain is indonesia is new embassy to germany. still under construction here in berlin. these new diplomatic headquarters reflect indonesia is changing on visions on the global stage. and it's the kind of project which has to come typical

over the last decade, a decade defined by this month. president joe co, we don't know who has left the countries of the 2014, but whose timing charge is coming to an end for the cure code that is not in the waste universe and into these buys mach named jacoby, is quite a remarkable figure that's been blonde, a long time indonesia correspondence who has written a biography of windows. he says with all those background as a furniture maker and small business owner is key to understanding him and his huge popularity. people feel because he's coming from relatively humble origins and works his way to the top. they feel that he understands the needs and his policies focusing on infrastructure development. trying to make improvements of basic health and education services in the off of not being very good policy and quite hard to access. i think they feel that that has limits to them. economic development has been the central same of windows presidency. and if one word defines as its

infrastructure, we don't know is government prioritized infrastructure from the start spending on things like roads, ports and railways has increased almost 3 folds since he took office and 2014. whether it's the countries high speed porch trends or the new capital city, his signature project, he has on down to the left his mark with all the ones new center to be a carbon neutral environmentally sustainable city. which replaces jakarta as capital. that is because the car to is thinking literally and is beset by various problems such as pollution, traffic cas, overpopulation and poor public transport. but accusations of being and on feasible vanity project come from the way the plans were hastily announced. plans and never any less doubt in detail and there's a risk, but there's a lot of ambition that never gets failed is really hard to build. you cities. i

think the minor, which jacoby announced and pushed it through, which was a big idea, fast details like that embodies waiting the product lots of other problems. yet there is an arguments that with those combination of vision, followed by decisive action, as embodied by new centera is precisely what indonesia needs. many other presidents in the past and talked about that. but i guess what, jacoby did different. he was this focus on getting things done on his own deniable, but that'd be many new toll roads, apples, bridges, and power stations built. and then finally, jacoby himself is very proud of. i've sat with him in his office when he gets out his ipad and starts to so shows that so how many kilometers the road is being built, shows pictures of new dams and power station built across the country. as things stand, the new capital city is due to be an old rated on august 17th, 2020 for indonesia has independence to a potential crowning glory for windows before he leaves office in october.

why? with those domestic economic policy has been defined by infrastructure as trade policy is centered around one vital commodity nickel. a nickel has been important globally for a long time, particularly for making stainless steel. but nowadays it's a critical component in the green transition. the reason it's kind of rising to the importance of the gland of the economy is the kind of the emerging market for nick go, is, is from batteries primarily left. the mind, batteries used in, in my biofire is about tops the increasingly and electric vehicles, which is ready to the big market in the years and decades to come. that's how you, fisher, a nickel experts based in australia. nickel phones are really important. part of the chemistry is within those like fremont batteries, particularly for vehicles for longer ranges that you can drive 5 or in, in high performing this vehicle at applications. indonesia has nichol reserves

where they are before with dodo took office. but during his time in charge, the country has rocketed to top spot in global nickel production. it's been the world's biggest producer since 2018 has increased that dominance every year since. today, indonesia accounts for more than half of the entire global output of nickel. more than rivals such as the philippines, russia, and everyone else combined. indonesia is determined to get as much value as possible from its nickel reserves and to keep the wealth gain from them in the country. that's why they've bundis from being exported back in 2014, they announced the ban on the floor of ex boss, which kind of was faced in between 20142024 various reasons. but that's, that's effectively forced domestic producers to focus on value added to those nickel products rather than just exporting also other countries,

particularly china, the policy of restricting the export of nickel. actually pre dates. we don't know, marie, i woke up i guess, to was minister for trade in 2009 on the government for a signal. this intent. we asked or read the origins of the law in 2009 when we were still in government. we passed the law uh it was the coolant mining law, which talked about the importance of increasing the value added of our, our raw material mineral exports. and there was a timeline that they would, we would start restricting the exports of or by 2014. so you know, 22009 to 2014 yet, so it was an advanced warning if you'd like to all the mining companies that they had to think about how they were going to invest in smelters and so on. indonesia is, policy is clearly influenced by its history as a resource rich nation,

which was roots was the plundered by deutsch colonialists. what the docs claimed was of liberal economics. and in many entities is right viewed as exploitation and best and abuse of that people and results is as a result, indonesia is somewhat wary of foreign investment in indonesia and constitution. it talks about the natural results as being for the benefit of the people. so is this a sense of socialism needing a better distribution in prison? was, is in line at the foundation of indonesia. and that went hand in hand with the suspicion of borrowing capital for an investment is being something that's essentially quite explicit. inventories, indonesia is key. and it's results is indonesia is nickel industry is now on recognizable in scale from how it was when export restrictions were 1st move it. yeah, no, definitely the, the, the policy is being be really key to where indonesia is today. and it's being very

effective that allowance huge amount investment in, in use supply and the concept pretty, that's still happening today was those say new projects being announced all the time. and the best, the kind of supply expansion to continue the price. and we are starting to see the kind of the early stages of, of the downstream development, downstream mid stream and upstream. the goal for indonesia is to try at the most profitable stage. downstream, the stream is typically minding and a little bit of processing. the main stream starts to get into kind of more technical materials that can go into a bathroom. it's arrows in the downstream is, is the batteries and the, the electric vehicles themselves. that means attracting investment for battery and electric vehicle production to actually take place in the country as a business. yeah. algy energy solutions and hi and i have a planning to stop by tree production in indonesia and pine. the arrows are left in the production starting in the country this year as well. we're starting to see

more more momentum in the downstream. but the expert found itself does not guarantee the development of downstream sectors. it's not just about imposing an export restriction. you have to have the eco system that allows the downstream industries to, to develop whether it's scale. and the most important is that you have to have the regional global market because you need scale. and you also need the human resources that supports, you know, a deeper development of your own downstream industries. and there are other question marks over indonesia is nickel one is the risk of over alliance. the commodity we that benefitted indonesia in 2022 in 2023 is actually starting to feed . so we're seeing these commodities there when speeding and indonesia. and usually when we have higher commodity prices, it just a list quite a few boards. so a dense and this government revenue was attempts to lift investments,

spending and as the standards paid, we basically see that it could have some impact on growth as well. that's livonia. event gets warrant. an economist, his current focus is on the south east asian economies. she says that indonesia is lack of diversification, and exports means that when commodity prices falls, hits the country hard. non commodity export growth has been quite weak. and i think that's likely to do me in quite weak because indonesia is exports actually focused on commodity. so what 60 percent of the will export to commodity based or that up he'll come want to do them since then their safety and environmental standards nichol industry, insiders expect demand for the commodity to continue to boom because of the green transition producing it sustainably is vital for indonesia is future success, and indonesia has been criticized for not doing the or indonesia has also bound the export of bulk size needed for all a medium. and it has restricted the export of copper as well. it's all part of

a plan to bring foreign direct investment or f d i to the country f t i is crucial for an economy such as indonesia is to progress nifty into indonesia has been stable if on spectacular for much of windows time and charge. but since the pandemic and the full nickel export band, it has time sharply last year. it has a record high of almost $50000000000.00 us dollars. but is it a note for indonesia? consider this golden indonesia at 2045 vision. that's the development program which would dodo launched in 2019. it sets the goal for indonesia to be a prosperous, developed economy by its centennial in 2045 here the current, the top 10 economies in the world, based on one measure of gdp. indonesia is a 7th class, but according to our report, like p w. c, it will be 4th by 2050. at stripped in size only by china, india and the usa. strong g d p growth is clearly important for indonesia to

achieve that status. and g d p growth is actually a big topic of discussion in indonesia during the recent presidential election campaign to find with those successor candidates argued over who could achieve annual growth of 7 percent or more the winner for boys to be until projects over from with dodo in october, said he would achieve growth of 8 percent. within 5 years. indonesia hasn't had growth as high as that in there the 20 years. over the last decade, the growth rate has consistently been around 5 percent, except during the pandemic. it is projected to remain at that level for the next few years. i do believe it's 7 to 8 percent. uh, you know, grocery trajectory is not an impossibility but, but it all depends on some of the key building blocks that we need to be building upon. that's data. where'd you have on a former indonesian minister for trade. he says there are various economic metric.