Prabowo Subianto discusses the politics and economics of Indonesia's presidential election. They explore Indonesia's unique challenges, its role in the global Islamic economy, and its market power in commodities. The hosts also mention two different podcasts during an advertisement break.
The geographical fragmentation caused by Indonesia's vast number of islands has led to cultural and linguistic diversity, with over 700 languages spoken, posing unique economic and cultural challenges.
Indonesia's economic model reflects a mix of protectionism and export restrictions, with a focus on boosting value-added industries through export restrictions on raw commodities, attracting foreign investment and stimulating growth.
Deep dives
Indonesia's Complexities as an Archipelago Nation
Indonesia, with its vast number of islands, presents unique economic and cultural challenges. Spanning over 17,000 islands and inhabited by 278 million people, Indonesia is a vastly diverse country. The geographical fragmentation caused by its islands has led to cultural and linguistic diversity, with over 700 languages spoken. Additionally, the country faces the threat of climate change and rising sea levels, which could potentially lead to the loss of territorial integrity. Despite these challenges, Indonesia plays a significant role in the global Islamic economy, with sizable exports in halal food, cosmetics, and Islamic finance.
Joko Widodo's Economic Legacy in Indonesia
Joko Widodo, the current president of Indonesia, has prioritized infrastructure development and economic growth during his tenure. While Indonesia has seen substantial economic growth under his leadership, it falls short of the ambitious targets set, particularly in terms of GDP growth rate and infrastructure investment. However, Widodo's focus on infrastructure has led to the modernization of the country, with significant investments in roads, bridges, and airports. Corruption remains a concern in Indonesia's development, as does the concentration of power within Widodo's family.
Indonesia's Economic Challenges and Global Trade
Indonesia's economic model reflects a mix of protectionism and export restrictions, particularly in the commodity sector. While Indonesia is a major exporter of commodities such as coal, palm oil, and steel, it lags behind its regional neighbors in terms of manufacturing and non-commodity exports. The share of trade in Indonesia's GDP has declined over the years, indicating a relative disengagement from the global economy. In an effort to boost value-added industries, Indonesia has implemented export restrictions on raw commodities, such as nickel, requiring processing to take place within the country. This has attracted foreign investment and stimulated growth in industries like battery production for electric vehicles. However, the success of this model faces challenges in terms of WTO regulations, market power, and equitable distribution of economic benefits.
Prabowo Subianto is on track to win the presidential election in Indonesia, raising concerns about a backslide towards authoritarianism in the world's third largest democracy. Adam and Cameron discuss the political and economic implications.