Organizer: The Indonesia Project, Australia National University
Type/Location: Hybrid / Canberra, Australia
Image: Sulawesi nickel mining
Description:
The recent iteration of Indonesian industrial policy is likely the most successful in Indonesia’s history and has aligned with the net-zero transition by focusing on downstreaming in critical minerals and electric vehicle (EV) manufacturing. A combination of trade, investment and tax policies has incentivised a surge in foreign investment into these industries. As a result, Indonesia is now the largest nickel producer in the world and the largest recipient of EV supply chain investments in Southeast Asia. However, there have been significant negative impacts on the environment and local populations from intensive downstreaming industrial activity and the concentrated growth from downstreaming has not translated into broad-based job creation or poverty reduction. EV manufacturing is also nascent and not generating notable growth opportunities yet. In order to secure large and broad economic development gains, Indonesia will need to diversify economic partners, improve governance to reduce negative externalities and improve the manufacturing sector’s competitiveness.
About the Speakers:
Hilman Palaon is a Research Fellow at the Lowy Institute in the Institute’s Indo-Pacific Development Centre. He has extensive experience in Indonesia, particularly in advancing the financial inclusion agenda and digitising social protection programs, during his tenure at TNP2K (the National Team for the Acceleration of Poverty Reduction), the Vice President Office of Indonesia.
Robert Walker is a Research Associate at the Lowy Institute and works as an economist in the Institute’s Indo-Pacific Development Centre. His work focuses on emerging Asian economies as well as growth and development in the Indo-Pacific region. Robert’s interests include macroeconomic policy, aid and development, geoeconomics and Indo-Pacific and European international political economy.
Registration Links:
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