it's ours business show puts the spotlight on indonesia the projected to soon be the world's 5th largest economy. that's after a short break. you'll find updates on the website. and of course now social media channels. mike, look and thanks for joining us and bye for now. the not just another day. so much is happening all at once. we take time to understand this is the day an in depth look, it's current use events, analyzed by experts and critical thinking is this is the weekdays on d, w 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 say it reflects the country's new found confidence and growing strength. the world has changed 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 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 decades. 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 known unless

you invested into these buys nickname. jacoby is quite the remarkable fig get. that's been blonde, a long time indonesia correspondence who has written a biography of adult. oh, 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 for 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 countries high speed porch trends or the new capital city, the signature project he has on down to the left is mark with all the 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 mean lashed out in detail and there's a risk that there's a lot of ambition that never gets failed is really hard to bill 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. 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 that talks about that, but i guess what jacoby did different knew 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, 2024, and then ages independence day, 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 left. the mind, batteries used in, in my biofire is 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 are 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 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 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 doctor claimed was of liberal economics and in many entities is right be viewed

as exploitation and best and abuse of that. people and results is as a result, indonesia is somewhat wary of foreign investment and indonesia is constitution. it talks about the natural results as being for the benefit of the people. so is this a sense of socialism needing a bad a distribution in prison with 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 and that's essentially quite exports to inventories, entities as well. and it's results that 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 contacts are pretty. that's still happening today. we're still saying you 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 early stages of, of the downstream development, downstream midstream 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 midstream 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, 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'll 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 nichols, 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 is 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 what 60 percent of the 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 boom because of the green transition producing it sustainably is vital for indonesia as future success. and indonesia, it has been criticized for not doing the or indonesia has also bound the export of bulk size 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 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 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 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. but according to our report, like p w. c, it will be forced by 2050 ad 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 already 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 70 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 want a farmer, indonesian minister for trade. he says, there are various economic metrics which indonesia most improve upon, but fewer is important than his u, 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 who has the hardest job in the world. miners, strenuous and dangerous work deep underground, fall short oil rig workers for that you need to be really strong and extreme weather conditions. mel who rescue workers firefighters, perhaps or mind sweepers, none of the above your heart has the most strenuous job in the world. it's working for you around the clock and a lot can happen. as we learn from how tour week and your honda welcome to in good shape.