TEDx Talks - Indonesia Can Become a Developed Country-But It's Not Guaranteed | Angelo Wijaya | TEDxUNS
The speaker outlines a framework for Indonesia to become a developed country by 2045, emphasizing the need for 8% economic growth and 0% poverty. Indonesia has achieved a stable 5% economic growth and significantly reduced poverty from over 70% to 1.82%. The speaker identifies four key levers: high-skilled talent, global supply chain integration, high technology, and large capital. Indonesia is improving in education and foreign investment, and is integrating into global trade networks. However, the climate crisis poses a significant threat, necessitating sustainable development and environmental resilience. The speaker suggests leveraging renewable energy and forest resources, and proposes financial mechanisms like carbon tax and green bonds to fund environmental initiatives. The comprehensive wealth index is proposed as an alternative economic measure, considering financial and environmental factors.
Key Points:
- Indonesia aims for 8% economic growth and 0% poverty by 2045.
- Key levers include high-skilled talent, global supply chain integration, high technology, and large capital.
- Climate crisis is a major threat; sustainable development is crucial.
- Renewable energy and forest resources are vital assets.
- Financial mechanisms like carbon tax and green bonds can fund environmental initiatives.
Details:
1. 🇮🇩 Vision 2045: Indonesia's Development Goals
- Indonesia's Vision 2045 aims to transition the country into a developed status by its centennial year.
- A strong belief in achieving this goal is emphasized, highlighting the need for a shared national conviction.
- Key strategies include economic diversification, enhancing human capital, and strengthening infrastructure.
- The vision addresses current challenges such as inequality, education quality, and sustainable development.
- Opportunities in digital transformation and global partnerships are identified as critical enablers.
- Specific metrics for success include GDP growth targets, education and health outcomes, and environmental sustainability indicators.
- Citizens' involvement and government policy alignment are crucial for realizing the vision.
2. 🌍 Traits of Developed Countries
2.1. Economic Strength
2.2. High Living Standards
2.3. Political Stability
3. 📈 Indonesia's Growth Metrics: Economy & Poverty
- Indonesia aims to become a developed country by 2045, requiring an 8% economic growth rate and 0% poverty.
- In the past decade, excluding the COVID-19 period, Indonesia has maintained a stable economic growth rate of approximately 5%.
- Indonesia has significantly reduced its poverty rate from over 70% in the 1970s-1980s to about 1.82% recently, a notable achievement compared to other developing countries.
4. 🔧 Strategic Levers for Development
- The transition team has identified four strategic levers for Indonesia's development: high skilled talent, high global supply chain integration, high technology, and large capital.
- Indonesia ranks well among developing countries on the Global Talent Competitiveness Index but still lags behind developed countries and top Asian universities.
- Indonesian universities have improved their rankings significantly, reflecting progress in higher education.
- The number of Indonesians studying abroad for tertiary education has increased, ensuring access to high-quality education and skills.
- Policies now allow foreign universities to operate in Indonesia, expanding educational opportunities.
- A potential dual citizenship policy could attract foreign talent and retain skilled Indonesian diaspora, enhancing the country's talent pool.
5. 🌐 International Engagement and Trade
- Indonesia's trade activities, including both exports and imports, have been on the rise, reflecting stronger integration into the global supply chain.
- The Indonesian government is actively seeking membership in the Organization for Economic Cooperation and Development (OECD), a group comprising advanced economies, which could enhance its global economic standing.
- By applying to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Indonesia aims to expand its trade network with significantly reduced trade barriers, potentially benefiting various sectors such as manufacturing and agriculture.
- Joining the OECD and CPTPP is expected to provide Indonesia with broader market access, improved trade terms, and opportunities for economic reform and growth.
- These strategic moves are part of Indonesia's broader initiative to strengthen its economic resilience and competitiveness on the international stage.
6. 🌱 Climate Challenges and Sustainability
6.1. Indonesia's Global Competitiveness and Trade Access
6.2. Innovation and Technology
6.3. Foreign Direct Investment Policies
6.4. Tech Industry and Infrastructure Developments
6.5. Challenges and Sustainability Concerns
7. ♻️ Sustainable Development and Capitalizing Natural Resources
- Island nations, including Tuvalu and Kabas, are under existential threat from rising sea levels, prompting Tuvalu to consider creating a digital clone of its territory as a contingency.
- Indonesia, facing similar risks, must focus on sustainable development to prevent extinction and reach developed nation status by 2045.
- Indonesia's CO2 emissions are approximately 7 billion tons annually, expected to more than double by 2030 without proactive measures.
- The country boasts over 3,000 GW of untapped renewable energy potential, yet renewables currently account for just 16% of its energy mix, compared to Brazil's over 70%.
- Indonesia's vast forest coverage presents significant opportunities for carbon sequestration and environmental conservation.
- To fund environmental initiatives, Indonesia could leverage carbon taxes, green bonds, and public-private partnerships, potentially generating significant revenue.
- Successful sustainable development strategies could include expanding renewable energy projects, enhancing forest conservation efforts, and increasing investment in green technologies.
8. 💡 Redefining Economic Success with Comprehensive Wealth
- Carbon tax revenue in Indonesia can potentially reach up to 6.5 trillion Indonesian rupia, providing a significant funding source for projects aimed at internalizing environmental externalities. This highlights the importance of integrating environmental factors into economic planning.
- The comprehensive wealth index offers a broader measure of economic success by incorporating elements such as skills development, healthcare, talent retention, infrastructure, and environmental conservation, thus providing a more holistic view of a nation's wealth.
- The comprehensive wealth index was discussed using Indonesia as one of the case studies at the UN Summit of the Future in New York, showcasing its potential to redefine economic success metrics beyond traditional GDP.
9. ❓ Future Readiness: A Call to Action
- Indonesia has significant potential to become a developed country. To achieve this, the nation must evaluate its readiness across various dimensions, including economic stability, technological advancement, and educational improvements. Identifying and addressing gaps in these areas is crucial for leveraging its strengths and realizing its development goals.