The Bumpy Rise of Indonesia.

Summary

The video script discusses Indonesia's rapid economic growth and its potential to become the world's fourth largest economy by 2050. It highlights ambitious projects like a new capital in Borneo and Indonesia's strategic position between China and the US. The country's rich natural resources, particularly nickel, and its role in global trade through the Strait of Malacca are emphasized. The script also touches on Indonesia's political history, current challenges, and its delicate balancing act between aligning with global powers and maintaining neutrality.

Takeaways

• 📈 Indonesia is predicted to become the world's fourth largest economy by 2050, after China, India, and the US, with a 5.3% GDP growth in 2022 marking its highest in nine years.
• 🌳 The Indonesian government is considering building a new capital city in the Bornean jungle to address issues like overpopulation, sinking, and environmental concerns in Jakarta.
• 🌐 Indonesia's strategic location, including control over the Strait of Malacca, places it at the center of U.S.-China rivalry and makes it an important player in international geopolitics.
• 🏝️ Indonesia is the largest archipelagic state, comprising over 17,000 islands, and its vast geography contributes to its socio-economic potential.
• 🕌 As the world's largest Muslim country, Indonesia's religious and cultural diversity has been shaped by historical trade and colonization.
• 🇮🇩 Post-independence, Indonesia faced internal unrest and political challenges, including a significant conflict with the Communist Party in the mid-20th century.
• 📊 Despite being the 16th largest economy, Indonesia ranks 25th in exports, indicating a need for more open trade policies to boost its global economic standing.
• 🚀 Indonesia's economy is heavily reliant on natural resources, particularly nickel, which is crucial for the automotive and battery industries.
• 🛑 The government's protectionist policies, such as banning nickel exports, aim to encourage foreign investment in local processing, but may not be effective for all commodities.
• 🌐 Indonesia seeks a neutral or non-aligned stance in the face of U.S.-China rivalry, reflecting a historical preference for neutrality and public sentiment.
• 🔄 Indonesia's engagement with both China and the U.S. includes military exercises, investment, and participation in initiatives like the Belt and Road, aiming for a pragmatic balance between the two powers.

Q & A

What was the prediction made by Pricewaterhousecoopers in 2017 about Indonesia's economy by 2050?

The report predicted that by 2050, Indonesia would be the world's fourth largest economy, behind only China, India, and the US.

What was Indonesia's highest GDP growth rate in the last nine years as of 2022?

In 2022, Indonesia achieved its highest GDP growth in the last nine years, with the economy growing by 5.3 percent.

Why is Indonesia planning to create a new capital city in the Bornean jungle?

The growing economy is being spurred by ambitious projects such as creating a new capital city to address issues like Jakarta's overpopulation, sinking, and environmental challenges like floods, congestion, and pollution.

What is the significance of the Strait of Malacca to Indonesia and the world?

The Strait of Malacca is a critical trade hub controlled by Indonesia, serving as the shortest sea route between the Indian and Pacific Oceans, and is vital for global maritime trade, especially for oil supplies.

What is the historical context of Indonesia's struggle for independence and its first years as a unified nation?

Indonesia declared independence on August 17, 1945, under the leadership of Sukarno and Muhammad Hatta. Post-independence, the country faced internal unrest and external influence from various powers, including the Dutch, Americans, British, and Soviets.

How did General Suharto's rule impact Indonesia's political landscape?

General Suharto ruled Indonesia in an authoritarian manner for 30 years after violently suppressing a communist coup attempt, leading to mass purges and significant political and social changes.

What is the current state of Indonesia's democracy?

Today, Indonesia is considered the third largest democracy in the world after the United States and India, although it is described as a fragile one due to ongoing challenges.

What are the economic ambitions behind Indonesia's plan to relocate its capital?

The new capital, Nissan Tara, is envisioned as a low-carbon superhub supporting the pharmaceutical, health, and technology sectors, and promoting growth beyond the island of Java.

Why is Indonesia's nickel industry significant on a global scale?

Indonesia has the largest nickel reserves in the world, which is crucial for the production of batteries in the automotive industry, making it a key player in the automotive revolution.

What is the strategic approach of Indonesia in terms of its international relations, especially with China and the US?

Indonesia seeks a neutral or non-aligned stance, trying to maintain a pragmatic middle ground between China and the US, engaging with both powers through cooperation in various sectors.

What are the internal challenges that Indonesia faces despite its growing international importance?

Internal challenges include fragile institutions, high levels of economic inequality, and uneven democratic and economic progress, which provide a shaky foundation for Indonesian ambitions.