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When it comes to transitioning to renewables and electrifying transport, Arsjad Rasjid, KADIN’s chairman, says the time of “talk, talk, talk” is over. Government and business need to work together to make power generation cleaner, to attract tens of billions in higher tech industries like electric vehicles as well as in information and communication technology. The wind is certainly at Indonesia’s back. FDI in machinery and metals is double what it was a year ago. At the G20 Indonesia secured US$20b in funding from G7 nations to retire coal fired plants (Indika Energy, Pak Arsjad’s own company will be among the first to benefit). But big economies including the US and the EU are introducing subsidies and quotas requiring big chunks of EV battery production to be based in those markets. Will retiring coal powered electricity just free up dirty coal for export. Indonesia wants to participate in the supply chains that churn out the next generation of EVs and batteries not just consume them. But will red tape hamstring it’s bid to escape the so called middle income trap? It’s a considerable list of agenda items for any organization, for Indonesia Inc there’s little time to waste.

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Sally O'Neil

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