Indonesia - Future Global "Superpower"

Summary

Indonesia, a nation of over 17,000 islands, has undergone dramatic changes since gaining independence in 1949. With a rapidly growing population and economy, it is projected to become the fourth-largest global economy by 2050. The country is investing heavily in infrastructure projects like rail systems and renewable energy. However, challenges such as deforestation, climate change, and Jakarta's sinking could impact its future. Despite these issues, Indonesia's strategic location, natural resources, and military strength position it for significant global influence, making it a rising power in the 21st century.

Takeaways

• 😀 Indonesia was historically isolated but has rapidly developed since gaining independence in 1949.
• 😀 Indonesia's population has nearly quadrupled over the past 70 years, making it the fourth most populous country in the world.
• 😀 Indonesia's GDP has more than quintupled in the past 30 years, making it the 7th largest economy globally.
• 😀 By 2050, Indonesia's population is projected to reach 330 million, giving it a significant labor force advantage.
• 😀 Indonesia's GDP is expected to triple by 2050, making it the fourth-largest economy in the world.
• 😀 Despite impressive growth, Indonesia faces infrastructure challenges, which it is addressing with large-scale mega-projects.
• 😀 Indonesia is rich in natural resources like copper, gold, oil, and natural gas, which will fuel its future economic growth.
• 😀 The country's strategic location along the Malacca Strait enhances its access to global trade routes.
• 😀 Indonesia's soft power will be key to its global influence, with its economy and military strength bolstering its regional and international impact.
• 😀 Internal challenges such as corruption, religious intolerance, and deforestation could hinder Indonesia’s future growth.
• 😀 Climate change poses a significant long-term threat to Indonesia, with rising sea levels and a sinking Jakarta at the forefront of the issue.

Q & A

How did Indonesia's historical background impact its development?

Indonesia was largely disconnected from the rest of the world for most of human history, and it was under the rule of the Dutch East India Company and later the Dutch Empire for nearly 450 years. This colonial history suppressed the region's development, but after gaining independence in 1949, Indonesia began its transformation.

What are the major factors contributing to Indonesia's rapid population growth?

Indonesia's population has nearly quadrupled from 72.3 million in 1952 to 278 million in 2022, due to a combination of high birth rates and improved healthcare leading to lower mortality rates. It is projected that the population will reach 330 million by 2050, making it one of the most populous countries in the world.

What role does Indonesia's economic growth play in its global influence?

Indonesia's economy has grown significantly, with its GDP by PPP increasing from 617 billion USD in 1991 to 3.5 trillion USD in 2021, making it the 7th largest economy globally. This growth, alongside a young and expanding labor force, is expected to make Indonesia the 4th largest economy by 2050, giving it substantial economic influence on the global stage.

What challenges does Indonesia face in sustaining its economic growth?

Despite Indonesia's economic progress, it faces significant challenges, including deficiencies in infrastructure, corruption, economic inequality, and internal divisions. Additionally, the impact of climate change, particularly deforestation and rising sea levels, could hinder future growth.

How is Indonesia addressing its infrastructure deficits?

Indonesia is undertaking large-scale mega infrastructure projects, including a light rail transit system in Jakarta, a high-speed rail line connecting Jakarta and Bandung, and the Trans Sumatra toll road. These projects aim to improve connectivity, attract investment, and promote economic development.

What is the significance of Indonesia's location in global trade?

Indonesia's strategic location along the Malacca Strait, one of the busiest maritime trade routes, provides it with easy access to global trade. This location gives Indonesia a significant advantage in terms of economic influence and regional power.

What are the main internal and external issues Indonesia must address to become a global superpower?

Internally, Indonesia faces challenges such as corruption, inequality, and religious intolerance, while externally, it faces the threat of climate change, particularly deforestation and rising sea levels. Addressing these issues is critical for Indonesia to fulfill its potential as a global superpower.

How is Indonesia tackling the issue of deforestation?

Indonesia has made efforts to reduce deforestation, with the government achieving a 75% reduction in deforestation rates by 2020. However, experts remain concerned about a potential rebound in deforestation, which could negatively affect the country's climate, biodiversity, and agricultural sector.

What environmental challenges does Indonesia face due to climate change?

Indonesia faces several environmental challenges, including a shrinking rainy season, decreased crop yields, and rising sea levels. Coastal areas, including small islands and Jakarta, are at risk of flooding, and the city is already the fastest sinking city in the world due to groundwater extraction.

What is the plan to address Jakarta's challenges as the national capital?

Due to Jakarta's sinking, congestion, and pollution, the Indonesian government plans to relocate the national capital to a new 34 billion USD city in East Kalimantan, Borneo. This city will have a green design and modern infrastructure, aiming to reduce pressure on Jakarta and promote economic activity outside of Java Island.