VOA Interview: Indonesia's Sri Mulyani Indrawati
Summary
TLDRThe Indonesian Finance Minister discusses the challenges Indonesia faced while hosting the G20 amid geopolitical tensions, particularly regarding Russia's involvement. She emphasizes the importance of global cooperation to address economic recovery post-pandemic. The conversation touches on Indonesia's diplomatic role, its stance on the G7's oil price cap, and Indonesia’s relations with both China and the U.S. The minister also highlights the country's infrastructure projects, including the Belt and Road initiative and the new capital city, while addressing energy transition goals and the Just Energy Transition Partnership (JETP) funding.
Takeaways
- 🌍 Indonesia emphasized the importance of cooperation for global economic recovery post-pandemic and amidst new challenges.
- ⚖️ Despite pressures, Indonesia maintained neutrality and opposed isolating Russia during the G20 summit, stressing that G20 was created to address global economic issues.
- 💬 Indonesia facilitated communication between conflicting parties, including Ukraine and Russia, to prevent prolonged conflicts and encourage dialogue.
- 🛢️ Indonesia acknowledged that energy and food disruptions caused by the war in Ukraine have affected countries globally, especially import-dependent ones.
- 💡 Indonesia's decision to buy Russian oil depends on government-controlled procurement and availability, with price caps providing potential benefits.
- 🤝 Indonesia played a key role in creating a platform for communication during the G20, allowing Ukraine's President Zelensky and Russia to voice their perspectives.
- ⚠️ Indonesia remains non-aligned in the US-China rivalry, though it has strategic relationships with both powers, emphasizing trade, investment, and peace in the ASEAN region.
- 🚉 Indonesia clarified that many infrastructure projects, including the Jakarta-Bandung high-speed rail, are funded by its own budget and state-owned enterprises, not dominated by foreign investments.
- 🌱 Indonesia's capital city relocation to Kalimantan will be gradually funded by government money, with plans to attract private and foreign investments later.
- 💰 Indonesia is committed to energy transition and has secured $20 billion in pledges under the Just Energy Transition Project (JETP), though its success depends on project implementation and financing delivery.
Q & A
What were some of the main challenges Indonesia faced while hosting the G20 summit?
-Indonesia faced significant geopolitical tensions, particularly due to the war in Ukraine. There were pressures to focus on isolating Russia and helping Ukraine, along with threats of boycotts from Western leaders unless Vladimir Putin was excluded.
How did Indonesia address the issue of whether Russia should participate in the G20 summit?
-Indonesia maintained that cooperation was necessary to tackle global economic challenges like the pandemic and climate change. They emphasized the importance of keeping the G20 focused on economic recovery rather than breaking the forum over political disagreements.
What was Indonesia's strategy to manage the tensions surrounding Russia's participation in the G20 summit?
-Indonesia acted as an 'honest broker,' inviting both Ukrainian President Zelensky to speak virtually and allowing Russia to make statements. This was aimed at diffusing tensions and fostering communication despite the ongoing war.
How does Indonesia view the G7's price cap on Russian oil?
-Indonesia sees potential benefits from the price cap but questions its effectiveness. The country emphasizes the importance of securing oil at the best price to meet domestic energy needs, especially during the recovery period.
What role does Pertamina play in Indonesia's oil purchasing decisions?
-Pertamina, assigned by the government, is responsible for procuring and importing oil. Indonesia's domestic oil production is insufficient to meet demand, so Pertamina looks for the best-priced oil sources globally.
How does Indonesia balance its relationships with both the U.S. and China in terms of trade and investment?
-Indonesia maintains a non-aligned stance, fostering strategic relationships with both countries. Trade and investment with China and the U.S. are significant, but Indonesia remains open to partnerships from multiple sources, including ASEAN and other regions.
What is Indonesia’s position on the rivalry between the U.S. and China?
-Indonesia, and ASEAN in general, prioritize peace, security, and economic development in the region. They aim for responsible relationships between the U.S. and China to avoid disrupting global economic recovery.
How is Indonesia funding its new capital city project in Kalimantan?
-The new capital city project is being financed primarily through government funds and state-owned enterprises. While the government is open to foreign investment from strategic partners, the majority of the funding is currently domestic.
What are some of the major infrastructure projects under China’s Belt and Road Initiative in Indonesia?
-One of the major projects under the Belt and Road Initiative is the Jakarta-Bandung high-speed rail. However, most infrastructure in Indonesia, like the Sumatra toll roads, is funded by the government and state-owned enterprises.
What is Indonesia’s approach to the Just Energy Transition Partnership (JETP) and the $20 billion pledged for energy transition?
-Indonesia views energy transition as critical, especially since the economy is growing and energy demand is rising. The country aims to reduce reliance on coal while developing renewable energy. The $20 billion pledge is part of international support for this transition, with a focus on retiring coal plants and investing in renewables.
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