and with that, you're up to date, but to stick around to the next, our business program looks at indonesia, and it's potentially become a global economic powerhouse. as after a short break, remember, you can always find much more news on our website. that's w dot com on air until overland. thank you very much for doing the can you see is what old car tires have to do with you production? here's a hands on the real media. watch now on youtube. this is a vision of indonesia is apparently bright 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 is set to have an increasingly prominent role in the new global order. in today's are, is probably one of the most important, but least on this, the countries in the world, indonesia is a vast archipelago of more than 17000 islands, 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 why vienna connect go for for electric vehicles, for energy storage, for a lot of these teeth. that ology is probably ended the transitions. and we talk 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 can see 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 me as 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 is the comp typical over the last decade. a decade defined by this month.

president joe co, we don't know who has lived the countries of the 2014, but whose timing charge is coming to an end for the circuit. with that, nobody seen investing in these buys nickname. jacoby is quite the remarkable figure that's been blunt a long time indonesia correspondence who has written the biography of we don't. he says with those background as a furniture maker and small business owner is key to understanding him and his huge popularity. people steal because he's come 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, the 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 delivered 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 prioritize 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 country's high speed horse trends or the new capital city, his signature project, he has on down to the left, his mark with all the ones new santana to be a carbon neutral environmentally sustainable city. which are places 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 really mean lashed out 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 manner which jacoby announced and pushed it through, which was a big idea as fast details like that embodies waiting is 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 of the presidents and the positive talks 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, efforts, bridges and power stations belts. 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 stations 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 global economy is the kind of the emerging markets in echo is, is from batteries, primarily fremont, batteries used in, in my phones about tops, but 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 performance. this vehicle that applications, indonesia is nickel 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 gained 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 expos. um, which kind of was phased in between? 201420. 20 for 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 origination, which was roots was the plundered by deutsch colonialists. what the doctor claimed

was of liberal economics and in many entities is right. need you to exploitation and best and abuse of that people and results is as a result, indonesia is somewhat wary of foreign investment and 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 capital for an investment is being something. and 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 still happening today was those say new projects being announced all the time. and the best, the kind of supply expansion 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 as a try at the most profitable stage. downstream, the stream is typically minding and a little bit of processing the mainstream starts to get into kind of more technical materials that can go into the bathroom. it's arrows and 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, l g energy solutions and high and i'm planning to stop battery production in indonesia and pine. the arrows are left in the production starting of 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 the scale. and the most important is that you have to have the regional a global market because you need scale. and you also need the human resources that support, 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 benefit of 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 kits. warren and economist, his current focus is on 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 and quite weak because indonesia of exports are largely focused on commodity. so about 60 percent of the will export to commodity based on the appeal commodities themselves and 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 as future success in indonesia, it has been criticized for not doing the indonesia as also buying the export of bulk sites need to trial 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

b i is crucial for an economy such as indonesia is to progress f d a 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 enough for indonesia? consider this golden indonesia 2045 vision. that's the development program which would go to launched in 2019 it's, that's 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 place, according to a report like p, w. c, it will be forth 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 both 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 the us and nearly 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 a 7 to 8 percent. uh, you know, grocery trajectory is not an impossibility but, but it all depends on some of the team building blocks that we need to be building upon. the data words you have on a former indonesian minister for trade, he says there are various economic metrics which indonesia must improve upon a few or is important than his you. as f d i given indonesia is history of political non alignment to countries stand out is

particularly important, then disregard doors to biggest economies, china and the us. the new technology helps shrink the mountains of tech style waste around the world. the sounding the wild fires on the rise in the world's knowledge is tropical wetlands and brightening up baghdad. small to use the skills to shift to mind sense the

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