Ambisi besar Indonesia di tatanan ekonomi global, hilirisasi nikel jawabannya? | DW Business Beyond

Summary

The script explores Indonesia's ambitious development projects, particularly the Ibu Kota Nusantara (IKN) megacity, showcasing both the support and criticism it has garnered. It highlights the country's rapid rise as the world's largest nickel producer under President Joko Widodo's leadership, with a focus on economic strategies like the push for domestic battery production. The script also touches on the balancing act Indonesia faces between its relations with China and the United States, particularly in terms of foreign investments. As President-elect Prabowo Subianto prepares to take office, Indonesia's aspirations for global economic dominance are at the forefront.

Takeaways

• 😀 Indonesia is developing a massive infrastructure project called IKN (Ibu Kota Nusantara), which is a trillion-rupiah venture being built from scratch in the forest.
• 😀 Critics argue that the IKN project is a waste of money, while supporters believe it reflects Indonesia's growing confidence and power.
• 😀 The leadership of President Joko Widodo, which has lasted for a decade, is ending soon, after prioritizing infrastructure development throughout his presidency.
• 😀 Since Jokowi took office in 2014, funding for infrastructure projects like roads, ports, and railways has nearly tripled.
• 😀 Indonesia has been a global leader in nickel production since 2018, thanks to Jokowi's leadership, making it the largest producer worldwide.
• 😀 The government's focus on downstream industries, especially battery and electric vehicle production, aims to attract investment and increase domestic manufacturing.
• 😀 A lack of export diversification in Indonesia has led to significant challenges, especially when commodity prices fall.
• 😀 Two major global economies, China and the United States, play a crucial role in Indonesia’s political and economic strategies, particularly in attracting foreign investment.
• 😀 While the US had a larger direct investment in Indonesia in 2014, China's investment has significantly surpassed the US in recent years, particularly in the nickel processing sector.
• 😀 Indonesia faces the challenge of balancing its relationships with China and the United States amid growing geopolitical tensions between the two countries.
• 😀 Indonesia is on track to become one of the top five economies in the world, with hopes that incoming president Prabowo Subianto can turn these ambitious goals into reality.

Q & A

What is IKN, and why is it significant for Indonesia?

IKN (Ibu Kota Nusantara) is a mega-project to build a new capital city for Indonesia from scratch within a forest. It symbolizes Indonesia's ambition and growing confidence as a nation, reflecting its future vision.

What are the critics' concerns regarding the IKN project?

Critics argue that the IKN project is a waste of money, questioning its necessity and the allocation of such large resources for a new capital city.

What do supporters believe the IKN project represents?

Supporters view IKN as a reflection of Indonesia's confidence and strength, emphasizing the nation's development and forward momentum.

How has infrastructure development been prioritized in Indonesia during President Joko Widodo's tenure?

Since President Joko Widodo's election in 2014, there has been a significant increase in infrastructure investments, particularly in roads, ports, and railways, with the budget for these projects nearly tripling.

How did Indonesia's position in global nickel production change during Jokowi's leadership?

Under Jokowi’s leadership, Indonesia rose to become the world's largest producer of nickel by 2018, with its dominance continuing to increase each year.

What is Indonesia’s goal regarding the downstream processing of its natural resources?

Indonesia aims to focus on downstream processing, specifically in the production of batteries and electric vehicles, to attract investment and ensure these industries are developed domestically.

Why is Indonesia focusing on downstream industries like batteries and electric vehicles?

By focusing on downstream industries such as batteries and electric vehicles, Indonesia seeks to add value to its natural resources, reduce reliance on raw exports, and generate more economic growth.

How did the drop in commodity prices affect Indonesia's economy?

The lack of diversification in Indonesia's exports led to a significant decline in commodity prices, which negatively impacted the country's economy.

What challenge does Indonesia face in balancing its relations with China and the United States?

Indonesia faces the challenge of balancing its relations with the two largest economies in the world, China and the United States, amid growing geopolitical tensions and competition between the two nations.

How has China's investment in Indonesia compared to that of the United States in recent years?

In recent years, China's direct investment in Indonesia has significantly outpaced that of the United States, with Chinese investments almost five times greater than U.S. investments, especially in nickel processing.