Indonesia will use next week’s G20 summit to scale up deals from infrastructure to carbon trading that underline its ambitions as a Southeast Asian economic powerhouse.
Much is at stake for Indonesian President Joko Widodo, who aims to invest US$89 billion next year while injecting US$34 billion of new capital into Kalimantan. All of these plans require funding and support from richer developed countries.
The strategy states. said Yose Rizal Damuri, Executive Director of the Institute of International Affairs.
Similarly, Jokowi, commonly known as the president, left a legacy of growth and investment, he added. Jokowi is currently serving his final term in his second term.
Indonesia has long been criticized by analysts for not exceeding its own weight for economic and diplomatic influence given domestic pressures and its political elite. The acquisition will be the Jokowi administration’s way of demonstrating the country’s potential, and its officials will not miss this opportunity.
The following is a list of deals that Indonesia wants to announce:
Indonesia aims to strike a deal with rich countries during the summit to fund a coal scrapping program. Prime Minister Jokowi has promised to shut down all coal-fired power plants in the archipelago by 2050, and five years later he will rely on 100% renewable resources. But his cabinet is divided over how to phase out coal, which accounts for more than half of the country’s total electricity capacity.
The Asian Development Bank is considering similar plans in Vietnam and the Philippines and hopes to announce tangible results during the summit.
Indonesia’s central bank, along with Malaysia, Thailand, Singapore and the Philippines, signed a deal this month to link a payment system that will allow some 384 million people to pay for goods and services through scanning its QR codes. Aims to be This system allows settlement of local currency, bypassing the need for US dollars as an intermediary.
According to World Bank data, only 51.8% of Indonesians have access to financial accounts, which is one of the lowest among the major economies in Southeast Asia. This made financial inclusion a major focus for Indonesia during the G-20 Presidency.
Bank Indonesia also plans to release a digital rupiah conceptual design by the end of this year, said Governor Perry Warjiyo. The central bank has been studying the digital rupiah since last year to stay at the forefront of the global adoption of cryptocurrencies as a payment method.
President Jokowi invited President Xi Jinping to test the China-backed US$8 billion high-speed train from Bali on November 16 via Zoom videoconference, according to Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan. have done. Trains connecting Jakarta and neighboring cities are supported by the China Development Bank and China Railway International.
Indonesia also plans to sign contracts with foreign investors for the Rp188 trillion (US$12 billion) expansion of its MRT rail system in Jakarta. Funding will come from Japan, South Korea and the UK, said Transportation Minister Budi Kalia Sumadi.
Special official at the Ministry of Finance Masita Kristalin said the government would release a roadmap for the carbon market, carbon tax and energy transition ahead of the G20 summit. This is a prerequisite for passing the much-anticipated carbon tax and trade regulations aimed at helping Southeast Asia’s largest economy achieve its net zero emissions by 2060.
Crystallin said the roadmap outlines the potential demand for such a market. The government has ordered the Indonesia Stock Exchange to set up a carbon exchange, which is expected to start operating in 2025.