Indonesia’s Economy
What do you know about Indonesia?
Where?
How many islands?
Capital City
Religion
Population
Indonesia has over 17,000 islands in South East Asia. Bali is the most famous for tourists.
It’s capital city is Jakarta on the island of Java.
Indonesia has a young population of 276 million people. It’s the largest Muslim country in the world and 4th largest country in terms of population.
Can you name the 3 countries with more people?
Indonesia has a lot of cobalt and nickel which are used to make EV batteries, armor plating (e.g. engine propellors), magnets, etc
cobalt (Co) = コバルト
nickel (Ni) = ニッケル
President Jokowi decided to ban exports of raw materials (cobalt, tin, nickel, coal, etc). Why?
Nickel - 30% of global reserves
Cobalt - 3rd largest reserves
Currently they export 95% of their raw materials but they want to develop downstream industries in their economy (eg. by producing EV batteries)
This will increase the jobs, taxes and profits in the domestic economy
Do you think their plan is a good one?
Hyundai and some Chinese car makers have agreed to build EV factories in Indonesia
Indonesia is negotiating with Tesla, Ford, BMW, Volkswagon.
What should Indonesia do to persuade Elon Musk to build a factory in their country?
tax breaks
improve supply chain
improve infrastructure
improve education of workforce
Currently Indonesia is attempting to move their government from Java, which has their biggest population, to Borneo Island.
58% of their population and GDP is in Java. 1.5 million people will move to the new city
The government said it will move it to Kalimantan to spread economic development.
The real reason is probably Jakarta is sinking due to global warming. Now 40% is below sea level. Jakarta has 13 rivers running through it so there are many floods each year.
The government doesn’t talk about the flooding issue. Why not?
Indonesia has a unique opportunity to completely design a city from scratch.
What would you like to change about Tokyo or your hometown?
What key features would you include if you could design a new city?
green spaces
public transport
eco-friendly high rise buildings
walkable city
tourist attractions - Jakarta doesn’t attract any
What tourist attractions could be built in the new capital?
