i haven't seen, i'll have more headlines for you at the top of the hour of next. our business program has a profile on indonesia from me, and the entire news team is for list things for the company. the, the in charlotte the currently more people than ever on the world wide in such a hassle. jessica middle castle josh, find out about robina story info migrants. this is a vision of indonesia is apparently bright. future new center of the country is new . multi $1000000000.00 capital city from scratch in the jungle. critics say the

unfinished megalopolis is a waste of money. champions said reflects the country is new, found confidence and growing strength. the world is changing. economic and geo political plants are shifting an indonesia set to have an increasingly prominent role in the new global order. these are, is probably one of the most important but least understood countries in the world. indonesia is a fast archipelago of more than $17000.00 islands, with hundreds of ethnic groups and 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 intro,

lock you down. strategically speaking between the west and china. in this episode, we'll consider why indonesia mattered so much without indonesia, that wouldn't be enough nickel saw for that too, because full energy storage for a lot of these keys. that ology is, is probably energy transactions. and we talked to indonesia as long 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 country economically as well as policy lead, the see a lot of countries in the middle of that slide that is up through a made an income attract all coming up on the latest business beyond behind me as indonesia, as 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 time in charge is coming to an end for the cure code that nobody seen investment in these buys, nickname. jacoby is quite a remarkable, fig. get that spend blunt a long time indonesia correspondence who has written the biography of we don't. he says windows background as a furniture maker and small business owner is key to understanding him. and his huge popularity and people steal 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 quality and quite hard to access. i think they feel that that has lives for them. economic development has been the central same of with those 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 fold since he took office and 2014. whether it's the country's high speed horse trends or the new capital city signature project, he has on down to the left his mark with the older ones new center to be a carbon neutral environmentally sustainable city which are places jakarta as capital. that is because the jakarta is sinking 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 blessed out in detail and there's a risk, but there's a lot of admission 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. fast details late that embodies the way he's approach lots of other

problems. yes, 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 in the past that 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, 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. this of 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, 2024 and an age as independence to a potential cronin 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 imagined moccasin. echo is, is from batteries, primarily fremont, batteries used in, in mobile phones, about tops 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 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 exports, 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 on 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 ruthlessly plundered by deutsch colonialists,

what the thoughts claimed was of liberal economics and the many entities and 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 in indonesia constitution. it talks about the natural results as being for the benefit of the people. so is this a sense of socialism needing a bed? a distribution in prison was, is in line at the foundation of indonesia, and that went hand in hand with the suspicion of foreign capital. and for an investment is being something that essentially quite exports different vendors, entities as well. 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 policy is being be really key to why or indonesia is today. and it's being very effective that allowing huge amount investment in, in use supply in the consulate pay that's still happening today. we're still saying

you projects being announced all the time. so that's the kind of supply expansion continue the price. and we are starting to see the kind of early stages of, of the downstream to buy them and then stream mid stream an upstream. the goal for indonesia is to try out 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 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. algae, energy solutions and hi. and i'm planning to stop battery 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 experts on

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 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 benefit to the indonesia in 2022 in 2023 is actually starting to feed. so we're seeing these commodities there when speeding in indonesia, and usually when we have higher commodity prices, it's instant list quite a few boards. so it ends to lift government revenue assistance 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 whose 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 of exports are largely focused on commodity. so what 60 percent of the will export to commodity based or the appeal commodities them since then their safety and environmental standards nichol industry, insiders expect demand for the commodity to continue to do. and because of the green transition producing it sustainably is vital for indonesia as future success . and indonesia has been criticized for not doing the or indonesia has also bound the export of bulk sites needed for all a medium. and this is a strict to 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

d 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 climbed sharply last year. it has a record high of almost $50000000000.00 us dollars. but is it enough for indonesia? consider this golden indonesia at 2045 vision. that's the development program which would go to 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, according to a report like p, w. c. it would be 4th by 2050, stripped and sized 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 early 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 that 7 to 8 percent. uh, you know, grocery trajectory is not an impossibility but, but it all depends on some of the, the building blocks that we need to be building upon. and that's data words you've, on a former indonesian minister for trade, he says there are various economic metrics which indonesia most 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 studying abroad. we have tips for the lead british universities, cambridge fancies at st. food. we serve you assembled classic potato dish, columbia, and visit polish. we show you whether milan is really as great as it looks on instagram. this in more coming up on 0 mac the .