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1. The New Development Bank’s Contribution to the Energy Transition Process in the BRICS Countries (2016-2023)

Author:
Maria Elena Rodriguez, Rafaela Mello Rodrigues de Sá, Octávio Henrique Alves Costa de Oliveira, and Renan Guimarães Canellas de Oliveira
Publication Date:
12-2026
Content Type:
Policy Brief
Institution:
BRICS Policy Center
Abstract:
Considering the growing relevance of the Multilateral Development Banks (MDBs) in the task of financing the global energy transition process, it is important to understand the efforts of these institutions to establish projects aimed at reducing carbon emissions in the most diverse sectors of the economy, and especially in the energy sector. This document looks specifically at the role that the New Development Bank (NDB) plays in this process, presenting an overview of its loan portfolio and targets in terms of contributions to the energy transition process. The NDB, also known as the BRICS Bank, stands out in its institutional strategies in the area of Clean Energy, one of its operational objectives, setting a target for the year 2026 of directing 40% of all its financing to projects aimed at climate change, including operations that contribute to the energy transition (NDB, 2022a, p. 28).
Topic:
Development, Banks, BRICS, Energy Transition, and Multilateral Development Banks (MDBs)
Political Geography:
Russia, China, Iran, Indonesia, India, South Africa, Brazil, Ethiopia, Egypt, and United Arab Emirates

2. Prioritizing Patani? Indonesian Human Security Diplomacy Towards the Issue of Thailand’s Deep South Provinces

Author:
Sidik Jatmika, Zain Maulana, and Ajeng Puspa Marlinda
Publication Date:
01-2025
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This study examines the reasons for Indonesian President Jokowi's foreign policy not to prioritise human security diplomacy towards the Patani issue, specifically the acceleration of peace talks between the Thai government and representatives of the combatants from Thailand's Deep South provinces. A qualitative methodology was employed, involving 22 in-depth interviews with elite and grassroots participants from Thailand and Indonesia. These included 7 interviews with State actors and 15 with non-State actors, 4 of whom were combatants. The findings are discussed in relation to the existing literature on the diffusion and implementation of Indonesian human security diplomacy in relation to peace issues in Patani. The article argues for a more proactive and effective diplomacy including the strengthening the role of Islamic non-governmental organisations to help resolve security issues and conflicts there.
Topic:
Foreign Policy, Diplomacy, and Human Security
Political Geography:
Indonesia, Thailand, and Southeast Asia

3. The impact on developing economies of WTO dissolution

Author:
Lloyd Barton
Publication Date:
07-2025
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
This report revisits the analysis presented in our April 2024 paper on the potential impact of WTO dissolution, drilling down to quantify national-level impacts for a sample of ten developing economies. Our previous report (The economic impact of abandoning the WTO) focused on presenting aggregated results for developing countries by region and income level. This report drills down to quantify impacts for a sample of ten individual countries: Brazil, Cameroon, China, Egypt, Guatemala, Indonesia, India, South Africa, Turkey, and Vietnam. These countries provide a rich, varied sample that captures the complexity of trade policy in the developing world. Their diversity in geography, economic size, policy orientation, and development stage allows for a nuanced analysis of how WTO dissolution could potentially influence pathways to higher incomes, poverty reduction and economic resilience. Our analysis reinforces the importance of ensuring the WTO can adapt to new trade realities and continue to function as an effective global trade body.
Topic:
Economics, Poverty, Trade, Economic Development, and WTO
Political Geography:
China, Indonesia, Turkey, India, South Africa, Brazil, Vietnam, Egypt, Guatemala, and Cameroon

4. The Economic Impact of the On-demand Service Industry in Indonesia

Author:
Bali Kaur Sodhi and Hwee Shi Yong
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
The on-demand service industry in Indonesia has become a vital component of the country’s digital economy, improving the everyday lives of millions of Indonesians through its multi-service platforms. Our analysis suggests that the industry, which covers ride-hailing and delivery services, facilitated a total economic contribution worth Rp91.7 trillion to Indonesia’s economy in 2023. In addition, the industry also supported an estimated 588,000 jobs and contributed Rp33.2 trillion in household income. This impact is generated through purchases on the on-demand service platforms and the economic activity it supports among the local supply chains in the wider Indonesian economy. For every employee hired by platform operators, an additional 112 workers are supported in other parts of the Indonesian economy. Every Rp100 of GDP generated by purchases made through on-demand service platforms leads to further economic activity worth Rp110 across the rest of the Indonesian economy. Beyond its economic contributions, the on-demand service industry promotes financial inclusion in Indonesia by offering unbanked individuals and small merchants access to financial services and microloans. On-demand service platforms also connect driver-, delivery-, and merchant-partners to Indonesia’s digital economy, enhancing digital literacy and creating new pathways for economic participation.
Topic:
Economics, Digital Economy, Digital Platforms, and Service Industry
Political Geography:
Indonesia and Southeast Asia

5. The future of Indonesia’s green industrial policy

Author:
Robert Walker and Hilman Palaon
Publication Date:
03-2025
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Indonesia now supplies more than half of the world’s nickel. Under its green industrial policy, it has also become a leading destination for foreign investment in critical minerals, electric vehicles (EVs), and the battery supply chain. While this strategy has offered some concentrated economic gains, rapid industry expansion has also been costly. Nickel processing has had damaging environmental, labour, and governance impacts, and has increased reliance on Chinese investment, technology, and demand, which presents vulnerabilities. Indonesia can strengthen its industrial policy by improving environmental and labour standards in the nickel industry, fostering a more competitive and export-oriented EV industry, and diversifying trade and investment partners.
Topic:
Foreign Direct Investment, Industry, Green Economy, Nickel, and Critical Minerals
Political Geography:
China, Indonesia, and Southeast Asia

6. Australia-Indonesia defence and security partnership: Overcoming asymmetric aspirations to tackle common threats

Author:
Euan Graham and Gatra Priyandita
Publication Date:
08-2025
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Australian officials accustomed to dealing with Indonesia are cognisant of the limitations to strategic cooperation, but Canberra needs to be more realistic and creative in how it approaches the critical relationship with Jakarta. Australia places greater strategic value on the relationship with Indonesia than vice versa. That dynamic is unlikely to change fundamentally. Optimism and ambition will still be needed to achieve a more balanced partnership, but it’s also crucial that Australian policymakers ground their expectations in this reality. Politicians, in particular, should guard against optimism bias. There are still plenty of opportunities for both countries to engage more deeply across a range of shared security challenges. This report analyses the defence and wider security partnership and identifies several areas where Indonesia and Australia should productively concentrate their efforts in the coming years, particularly to counter the rise of hybrid threats. The 2024 Australia–Indonesia Defence Cooperation Agreement (DCA) is best understood as a continuation of, rather than an acceleration in, the strategic relationship. But it provides Australia with useful avenues to expand its defence relationship with Jakarta, at a time when Indonesia finds itself courted by other countries that don’t share Australia’s security interests. Ultimately, the DCA reflects Canberra’s long-term investment in a defence partnership that can address evolving regional security challenges. From disaster response and maritime patrols to multilateral peacekeeping, the agreement lays the groundwork for a future in which the two countries’ armed forces can operate together effectively. Continued engagement should centre on expanding military training programs, enhancing operational coordination, and exploring new areas of cooperation, especially to counter hybrid threats. The DCA’s future success will depend on the ability of both sides to manage their differing aspirations, motivations and strategic outlooks in a rapidly deteriorating global security environment. Proper management of those differences, rather than avoidance of them, would better position the two countries for practical cooperation on clear common interests but which, too often, is limited to positive prose instead of action. Revitalising the Australia–Indonesia security relationship requires a shift in focus, away from treating defence cooperation as simply an expression of goodwill or strategic alignment and towards framing it as a joint response mechanism to shared vulnerabilities. Australia and Indonesia face a convergence of challenges, such as maritime insecurity, cyberattacks, disinformation, illegal fishing and transnational crime, that affect both nations and undermine the broader stability of the Indo-Pacific. Responses to those shared concerns can still guide the two countries’ defence partnership in the absence of strategic alignment. By investing in functional collaboration—through interoperable training, coordinated hybrid threat responses and trilateral maritime frameworks involving states such as the Philippines—both countries can build a more flexible and purpose-driven security partnership. This approach acknowledges the limitations to cooperation without being paralysed by them, allowing the relationship to evolve around problem-solving rather than the chimera of strategic convergence.
Topic:
Security, Defense Policy, Partnerships, ASEAN, and Strategic Cooperation
Political Geography:
Indonesia, Australia, and Indo-Pacific

7. Indonesia in 2035: Climate risks to security in the Indo-Pacific

Author:
Michael Copage, Robert Glasser, and Isabelle Bond
Publication Date:
04-2025
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Indo-Pacific region is particularly exposed to climate impacts, and Indonesia, like many countries, will be severely affected by climate impacts in the decade to come. The effects of climate-amplified disasters, combined with the political, social and economic consequences of climate impacts originating from within and across the region, will strain Indonesia’s economic and national-security interests. This report presents the findings of a narrative-driven scenario to stress-test Indonesia’s climate risks emerging by 2035. Its objective is to identify opportunities for Indonesia and its economic and strategic partners to prepare for and mitigate the risks. While Australian policymakers have devoted significant attention to the existential risks that Pacific island countries face, Southeast Asian countries are also highly exposed and often face similar risks. Within Southeast Asia, Indonesia’s climate risks have received very limited attention despite its high exposure to climate hazards, its very large population (over 10 times larger than all Pacific island countries combined) which is densely concentrated in vulnerable coastal areas and small islands, and its history of political unrest associated with disruptions to food and energy security. It’s also one of the closest neighbouring countries to Australia. Figure 1 on page 5 provides a visual summary of the interacting hazards, risks and consequences highlighted in this report. The population size of Southeast Asian countries and their often-close proximity to one another means that climate impacts in one country will often have consequences beyond their borders and for their neighbours across the region. Gaining a better understanding of how Indonesia, as the largest country in Southeast Asia, will be affected by climate developments is vital, given both the domestic and regional consequences. Even below the ‘safe’ threshold of a 1.5°C rise in global average temperature—the aspirational target set in 2015 by the signatories to the Paris Agreement—countries around the world are already experiencing serious, record-setting, climate-driven disruptions on a large scale. The era of climate-induced disruption is clearly already upon us—and it will intensify rapidly. Building resilience while preparing for future disruption requires an enhanced appreciation of climate risk that goes beyond adapting to more frequent and severe natural hazards, such as floods and fires. Development-assistance and defence communities have embraced the importance of treating climate change as a threat to human, economic and traditional military security. The challenge is to build the capacity and tools to assess the broad suite of security-related risks of climate change—and to translate that information into measures to mitigate the risks. Understanding the complexity and uncertainty associated with climate trends is a daunting task, greatly complicated by the need to incorporate the many ways climate change affects social, political and economic systems. The scenario developed in this report isn’t a prediction of the future, but rather a description of a possible future. It identifies many climate impacts, but suggests three primary pathways through which Indonesia may face compounding and destabilising climate disruptions: Significant food insecurity from losses to domestic production due to shifting precipitation timing and extremes across the wet and dry seasons, heightened sensitivity to shocks in global food prices, and reduced government ability to absorb economic shocks, such as food-price hikes. Large-scale coastal population displacement driven by Indonesia’s high coastal population density and the significant exposure of that population to sea-level rise and climate-induced coastal flooding. Slowed economic growth from lost agricultural output, declining revenues from stranded fossil-fuel assets, rising disaster costs at home and abroad affecting economic infrastructure and supply chains, and rising challenges in responding to domestic crises driven by food insecurity and population displacements. A major finding of this research is that, in little more than a decade, Indonesia is likely to experience major climate disruptions that also amplify climate and security risks in the region, resulting in a range of additional and cascading risks for Australia. A second overarching finding in the report is that Indonesia may be underestimating the likely scale of the climate risks and should devote greater attention to analysing them. It’s in Australia’s interests to do the same and, as a good neighbour, to coordinate an Australian whole-of-government effort to support Indonesia to mitigate the risks, including cross-border risks.
Topic:
Security, Foreign Policy, and Climate Change
Political Geography:
Indonesia, Australia, and Indo-Pacific

8. The Bandung Spirit

Author:
Tricontinental: Institute for Social Research
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
In 1955, the leaders of former Global South colonies met in Bandung, Indonesia, brought together by a common spirit for national liberation and cooperation. Seventy years later, is there any trace of it left?
Topic:
Development, International Cooperation, History, Global South, and Internationalism
Political Geography:
Africa, Indonesia, and Asia

9. Indonesia in the Face of the Death Penalty – Hopes Versus Reality

Author:
Maria Ochwat
Publication Date:
03-2025
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The right to life, without a doubt, is the most essential right of every human being. Protection and respect for this right is a prerequisite for enjoying and realizing other rights guaranteed to the individual. However, it is not an absolute right, but one that, under various circumstances, can be restricted. One such restriction is the death penalty. Many countries have decided to abolish it; however, only three countries in Southeast Asia, namely Cambodia, the Philippines, and East Timor, have decided. While Indonesia guarantees the right to life, it does allow the death penalty. Although the death penalty has not been carried out for several years, the death penalty has been retained in the criminal code, and courts continue to award it. The public (especially the young) is increasingly advocating its complete abolition, but those in power do not seem interested. The death penalty is also left in the new criminal code. This article is about the death penalty in Indonesia. The author also decided to survey Indonesian students to find out their attitudes toward the death penalty.
Topic:
Public Opinion, Prisons/Penal Systems, Death Penalty, and Right to Life
Political Geography:
Indonesia and Southeast Asia

10. Between Trade and Trust: Rethinking Indonesia–US Cross-Border Personal Data Transfer

Author:
Fikri Adib Rianto
Publication Date:
10-2025
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Indonesia’s recent decision to recognise the United States as an adequate jurisdiction for personal data protection – made under a new bilateral trade deal – permits the transfer of Indonesian personal data to US private entities without additional safeguards. This move, taken before Indonesia’s Personal Data Protection Authority (PDPA) is established and before adequacy criteria are formally defined, raises concerns over legal legitimacy and data governance. Given persistent systemic risks in the US – ranging from corporate misuse and cybersecurity vulnerabilities to expansive surveillance powers and fragmented privacy laws – the decision appears premature. To safeguard privacy while supporting trade interests, Indonesia should complete its domestic data protection framework, clarify adequacy criteria, and temporarily recalibrate its adequacy determination until more robust bilateral governance mechanisms are in place.
Topic:
Science and Technology, Bilateral Relations, Governance, Regulation, Trade, and Data
Political Geography:
Indonesia, North America, Southeast Asia, and United States of America

11. Health Service in Indonesia

Author:
Adiatma Siregar, Bondi Arifin, Teguh Santoso, Riki Relaksana, and Priscillya Hotma
Publication Date:
09-2025
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The healthcare system in Indonesia has undergone various changes and encountered significant challenges over the past decade. Notably, the issue of inequity within the health system, particularly concerning the distribution of health facilities and workforce, is a prominent concern. Against the backdrop of evolving policy regulations and advancements in digital health, Indonesia’s potential in health services is promising. Consequently, interventions are imperative to address and improve prevailing imbalances in the accessibility and quality of health service facilities and healthcare personnel. Strategic interventions towards this end involve implementing comprehensive programmes to enhance equity and quality, prominently featuring the integration and advancement of digital health technologies.
Topic:
Science and Technology, Aging, Public Health, and Healthcare System
Political Geography:
Indonesia and Southeast Asia

12. Compliance Analysis of Indonesia’s LCR Measures: International Trade and Investment Agreement Perspectives

Author:
Junianto James Losarili
Publication Date:
07-2025
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The rise in geopolitical tensions and economic nationalism has contributed to a global shift from a relatively liberal economic order toward a more protectionist regime. Amongst the tools increasingly used by governments are local content requirements (LCRs). Indonesia – recently ranked as the most protectionist country in the 2025 International Trade Barrier Index – has relied heavily on LCRs over the past decade to shield domestic industries and advance along global value chains. These measures are becoming more prevalent, particularly in sectors designated as strategic by the Indonesian government, including mining, manufacturing, pharmaceuticals, telecommunications, and, more recently, the automotive sector (especially electric vehicles). However, the proliferation of LCRs raises concerns about Indonesia’s compliance with its obligations under international trade and investment agreements, including World Trade Organization (WTO) rules and various bilateral and regional treaties. This discussion paper analyses Indonesia’s LCR policies through the lens of international trade and investment law, assessing their consistency with national treatment obligations, prohibitions on performance requirements, and restrictions on subsidies. While certain LCRs may fall under permissible exceptions – such as those related to government procurement – others may be vulnerable to legal challenge. The paper concludes by offering recommendations for the Indonesian government to reassess and recalibrate its LCR policies, with a view to minimising legal risks and avoiding potential trade and investment disputes.
Topic:
International Trade and Finance, Multilateralism, Investment, and Compliance
Political Geography:
Indonesia and Southeast Asia

13. Between Reform and Paralysis: Indonesia, WTO Uncertainty, and the Case for the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)

Author:
Intan Murnira Ramli and Megawati
Publication Date:
09-2025
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Indonesia’s potential accession to the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) represents a timely and strategic step to restore legal certainty in World Trade Organization (WTO) dispute settlement. The paralysis of the WTO Appellate Body has weakened the multilateral trading system, leaving disputes unresolved and undermining confidence in global trade rules. The MPIA offers a credible, binding alternative that preserves appellate review. By joining, Indonesia could safeguard its key export sectors, prevent disputes from being ‘appealed into the void, ’ and align with other ASEAN Member States that are already participants. This policy brief assesses the relevance and implications of MPIA membership for Indonesia, highlights the risks of non-participation, and outlines policy options. It recommends that Indonesia consider joining the MPIA while simultaneously: • Advocating for comprehensive WTO reform, and • Leveraging regional mechanisms to safeguard its trade interests.
Topic:
Governance, Reform, Multilateralism, Trade, and WTO
Political Geography:
Indonesia and Southeast Asia

14. Indonesian Service Sector Review: Telecommunications

Author:
Ibrahim Kholilul Rohman, Mohammad Marza Naufal, and Ibrahim Naufal
Publication Date:
08-2025
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper aims to assess ongoing advancements in the telecommunications sector in Indonesia, elucidating strengths and weaknesses and offering policy recommendations. The telecommunications industry continues to grapple with challenges such as heavy reliance on imported equipment; pricing issues, particularly at the wholesale level; spectrum management concerns; and ensuring equitable access in addressing the digital divide. To address these challenges, it is imperative to formulate policies that guarantee equitable access and utilisation at affordable pricing, requiring enhanced market conduct and pricing mechanisms. Furthermore, incentivising operators to extend coverage to underserved areas is crucial, given the existing supply constraints in such regions.
Topic:
Science and Technology, Services, and Telecommunications
Political Geography:
Indonesia and Southeast Asia

15. Resilience Factors of Islamic State Supporter Movements in Indonesia: A Mixed-Methods Analysis

Author:
Aprison Mandela, Arthur Josias Simon Runturambi, Margaretha Hanita, and Muhammad Syauqillah
Publication Date:
10-2025
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
Since emerging as a global extremist movement, the Islamic State has expanded its influence in Indonesia, where its supporters persist despite intensive counter-terrorism efforts. IS-related recruitment and attacks have been ongoing since 2014. Through in-depth interviews with 33 convicted or active IS supporters, as well as insights from Indonesian security personnel, including representatives from BIN, BNPT, Densus 88 AT and BAIS, the study has identified thirteen factors that enable these networks to endure. These factors fall into two main categories: nine dominant factors that directly underpin the organisational and ideological survival of the group, and four supporting factors that provide flexibility and localised adaptability. The findings emphasise the importance of shifting counterterrorism strategies from a reactive approach to proactively disrupting ideological, technological and community-based support systems.
Topic:
Terrorism, Violent Extremism, Counter-terrorism, Islamic State, and Resilience
Political Geography:
Indonesia and Southeast Asia

16. The Prospects of Indonesia’s Nickel Boom Amidst a Systemic Challenge from Coal

Author:
Thibault Michel
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Indonesia is a country that is booming economically and demographically. This not only matters for regional political and energy security, but also increasingly, for the world’s energy transitions, due to Indonesia’s large metal reserves, as well as its equally important coal consumption in industry and for power generation. Over the last 20 years, Indonesia’s economy has been characterized by very dynamic growth, massive increases in its electricity demand, and coal consumption and exports. Hence, its greenhouse gas (GHG) emissions are on a steady growth trajectory, although the country has committed to lowering them by 32% (unconditional) or 41% (conditional) by 2030. With its Organisation for Economic Cooperation and Development (OECD) membership application, occurring in the context of global energy transition requirements and geopolitical confrontations, Indonesia is today at a crossroads. Indonesia has 42% of the world’s nickel reserves, as well as substantial reserves of copper, gold, tin, and, notably, coal. This wealth in natural resources has given the mining industry crucial importance in Indonesia’s economic growth and has recently taken an even more prominent place: Indonesia has managed to become the world’s largest nickel producer within just a few years, as its share in global nickel extraction grew from 5% in 2015 to 50% in 2023. The country is also the world’s third copper ore exporter. Coal and energy transition minerals have progressively replaced oil and gas in Indonesian exports. Between 2011 and 2023, oil and gas exports fell by nearly two-thirds and their share in the national exports decreased from 20% to 6%. In 2023, export revenues from copper were larger than those of oil and equal to gas earnings. Yet, having major mineral deposits and mining activities is no longer considered sufficient by the Indonesian government. So far, the mineral industry’s growth has relied hugely on Chinese investments and on low-added-value activities, especially in pyrometallurgy processing. Diversification of trade partners and expansion into new, entire value chains is, therefore, a key objective for the Indonesian government. Indonesia is seeking to boost trade with the United States (US), the European Union (EU) and even the Eurasian Economic Union. However, negotiations over respective agreements are currently encountering hurdles due to American legislation (the Inflation Reduction Act and Foreign Entities of Concern status), which could seriously threaten Indonesian exports of battery mineral components to the US market while they also face hurdles to entering the EU due to environmental regulations. The second part of Indonesia’s strategy focuses on the development of new industrial segments of value chains: refining facilities, hydrometallurgical processing plants, battery factories, etc. To develop these activities, the Indonesian government is using two main tools: the divestment of foreign companies in local firms and export bans on crude ore exports. Such bans have been introduced for nickel in 2020 and for bauxite in 2023, while they are expected for copper in 2024 and perhaps even later for tin. Indonesia is today also confronted with the negative repercussions of mining activities on its soil, including protests over the lack of safety in its mines and smelters, citizens’ expropriations, the presence of indigenous tribes on mining sites, and, above all, damage to the environment. Such damage also has its roots in the substantial amounts of energy used to feed smelters, which mostly rely on the use of coal. Decarbonizing Indonesia’s economy has thus become a central challenge for the country, where the consequences of climate change are already palpable on the archipelago’s soil, with extreme weather events and the sinking of the capital city – Jakarta – as sea levels rise. To carry out the tremendous transformation towards net-zero emissions while ensuring steady and sustainable development, the country has signed a Just Energy Transition Partnership and prepared decarbonization scenarios within this framework. Key priorities in the coming years include renewable energy deployment, grid development and an early phase-out of coal. Deploying renewable energy sources as well as large and resilient grids is made more difficult by the country’s geography. The archipelago includes 17,000 islands, some of them being undeveloped, hard to access and far away from each other. Furthermore, the levelized costs of solar and wind power are currently high in Indonesia compared with other developing countries, while public subsidies for coal do not favor low carbon generation sources. If the two first points are thus very challenging, the last one appears to be the hardest, considering the Indonesian economy’s tremendous dependency on coal. Concerns are therefore rising about Indonesia’s ability and even willingness to pursue a genuine, albeit differentiated decarbonization pathway. There are also many questions regarding Indonesia’s mineral trade strategy. New bans on crude ore exports are expected to come into force, while new mining and mineral processing operations are under development across the archipelago, as quantities of nickel produced in the country are at historic highs. This extraordinary increase in nickel production, concomitant with a global economic slowdown, has resulted in a sharp fall in nickel prices, with nickel losing half of its value between January 2023 and February 2024. As a result, many producers are finding themselves in danger, especially in Australia or New Caledonia. While there could be a deliberate strategy to flood the markets and neutralize competition, notably by Chinese companies that control 75% of the global nickel supply (mainly from Indonesia but also from the Philippines), the country faces serious dilemmas. Indonesia’s oil and gas production is diminishing, and it increasingly relies on nickel exports and higher nickel prices for its economic stability, with coal also remaining very important. Indonesia’s resource nationalism and industrial strategy, which include attracting foreign investments, notably via its OECD membership pledge, require a credible pathway to reduce the carbon footprint of its electricity generation. Among the pathways towards both decarbonization and the development of industrial battery value chains, three steps could be considered: Deploying renewable energy sources, especially solar photovoltaic (PV) power and offshore wind farms, as well as progressively transferring subsidies from coal to renewable energy sources. Developing a clean battery industry based on high environmental, social and governance (ESG) criteria and on the wealth of Indonesia’s subsoil, which includes most of the metals used in battery manufacturing. Protecting climate and biodiversity by favoring innovative solutions for mining waste management and upholding high ESG standards.
Topic:
Natural Resources, Electricity, Coal, Lithium, Minerals, Energy Transition, and Nickel
Political Geography:
Indonesia, Southeast Asia, and Indo-Pacific

17. Indonesia’s 2024 Presidential Elections: Campaigning for Continuity

Author:
Juliette Loesch
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Indonesia is gearing up for its next general election on February 14, with a potential runoff scheduled in late June. This major electoral process will determine the nation’s next president and vice-president since incumbent President Joko Widodo, also known as Jokowi, will step down after ten years in office in compliance with the constitutional limit of two terms. Voters will also decide on nearly 20,000 representatives at the national, provincial, and district levels. Another provincial election is set for November this year, although discussions are currently unfolding in the Parliament to advance it to September. This proposed timeline has triggered concerns about possible interference from the current administration, given that the new one will only be appointed in October. Indonesia’s general election will determine the nation’s next president and vice-president. A turnout of 204 million voters, over a total population of 277 million, is expected to show up at the polls. The election features a three-way race between prominent political figures Prabowo Subianto, Ganjar Pranowo, and Anies Baswedan. All three candidates have affiliations with the current administration of President Joko Widodo, also known as Jokowi, with Ganjar Pranowo and Prabowo Subianto even competing for his legacy. As of early February, Prabowo, Jokowi’s defense minister, and his vice-presidential pick Gibran Rakabuming Raka, Jokowi’s eldest son, are leading the polls. Experts nonetheless foresee a probable runoff, which is set in late June 2024. Concerns have surfaced regarding Jokowi’s interventions in the campaign, which seem to support the Prabowo Gibran ticket. While such interference is not inherently unlawful, certain actions undertaken by the administration to support Prabowo and Gibran raise more serious concerns about election
Topic:
Domestic Politics, Presidential Elections, and Continuity
Political Geography:
Indonesia, Southeast Asia, and Asia-Pacific

18. Labour market inequality in two Asian giants Indonesia and India compared

Author:
Kunal Sen
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine the nature of labour market inequality in Indonesia and India, using a common conceptual approach drawing from the job ladder framework. In the framework, we differentiate between self-employment and wage-informal and between formal, upper tier informal, and lower tier informal jobs. We find that both countries have a large proportion of workers in lower tier jobs, though the importance of wage-employment is larger in Indonesia. There are more workers in formal wage-employment in Indonesia than India. There are also sharp disparities in the earnings of workers in different tiers of the labour market in Indonesia and India, and there is limited evidence of convergence of the earnings of the lower tier informal workers to that of formal workers, at least for Indonesia. We also find that gender and educational level are important correlates of work status in both countries. Females and less educated workers occupy the lower tiers of the labour markets in the two countries.
Topic:
Employment, Inequality, Economy, Labor Market, and Informal Economy
Political Geography:
South Asia, Indonesia, India, and Asia

19. Indonesia’s Democracy and the 2024 Elections: Navigating a Crucial Moment

Author:
Aisah Putri Budiatri
Publication Date:
02-2024
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
With voting day now concluded, preliminary results and quick counts indicate a convergence in the outcomes of both the presidential and legislative elections. The Prabowo-Gibran ticket secured victory in the presidential race, prevailing over contenders Anies Baswedan-Muhaimin Iskandar and Ganjar Pranowo-Mahfud MD. Projections suggest that Prabowo-Gibran garnered a vote share of 56-59%, surpassing Anies-Muhaimin’s anticipated vote share of approximately 24-26% and Ganjar-Mahfud’s expected vote share of around 15-17% (Ira 2024). Meanwhile, quick count findings for the legislative elections suggest that eight political parties will secure seats in the national parliament: PDI-P (16.4%), Golkar Party (14.6%), Gerindra Party (13.5%), PKB (10.7%), Nasdem Party (9.9%), PKS (8.4%), Demokrat Party (7.6%), and PAN (7.1%). Notably, despite losing the presidential race, PDI-P emerged as the top vote-getter in the legislative elections, signaling an intriguing divergence in electoral outcomes (Farisa 2024). While awaiting the official election results from the General Elections Commission (KPU), preliminary projections suggest that incumbent President Joko Widodo (Jokowi)’s successor will emerge victorious in the 2024 election. Prabowo-Gibran, positioned as Jokowi’s successor not only due to Gibran’s familial relationship as Jokowi’s son but also because of their campaign emphasis on Jokowi’s continuity, has secured a resounding victory. Additionally, the combined party support for Prabowo-Gibran exceeds 40% in national parliament electoral results, surpassing both the Anies-Muhaimin’s party coalition, including Nasdem Party, PKB, and PKS, at 29% and the Ganjar-Mahfud’s party support at 16.4%. These outcomes raise concerns regarding the potential perpetuation of democratic regression under the political stewardship of Jokowi’s successor, a trend that several research findings suggest began during the Jokowi administration (Power and Warburton 2020).
Topic:
Civil Society, Politics, Elections, Opposition, and State Engagement
Political Geography:
Indonesia and Southeast Asia

20. Pivotal States, Not Swing States

Author:
Mohammed Soliman
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
The United States, in particular, is grappling with the challenges posed by the emerging multipolar order and the need to secure a favorable position in this evolving global landscape. As part of this contemplation, there is a growing recognition of the significance of “swing states” like India, Türkiye, Indonesia, Vietnam, Brazil, and Saudi Arabia in shaping the outcome of the postCold War order and the broader global system. However, framing these consequential states as “swing states” in and of itself carries significant risk, as it implies that the only choice they have is a binary one: pick the U.S.-led West or the China and Russia axis. In reality, their strategic posture is far away from choosing one side over the other; at the same time, they are not behaving similarly to the Cold War-era non-aligned movement that was inherently anti-Western and leaned towards the Soviet-led block under the disguise of anti-colonialism solidarity. The appropriate strategic name for this growing list of countries in the present-day is “pivotal states,” and includes Brazil, India, Indonesia, Saudi Arabia, and Türkiye, chosen for their strategic geography, demography, and overall strength. Alongside these, there are other pivotal states with unique roles, such as Vietnam due to its position in the global supply chain and Egypt as a maritime bottleneck between the East and West. It is now widely acknowledged that international stability and the outcome of the U.S.-China neoCold War are influenced by factors beyond the behavior of Russia and China. But one crucial factor that remains underappreciated is that the behavior of pivotal states— which are determined to chart an independent course—will play vital roles in shaping the future of the international system. It is essential to recognize that these pivotal states inherently reject the bipolarity and “Cold War 2.0” framing that dominates the perspectives of, for example, Washington, Brussels, and Tokyo.
Topic:
Geopolitics, Strategic Competition, Strategic Stability, and Multipolarity
Political Geography:
Russia, Indonesia, Turkey, India, Brazil, Vietnam, Saudi Arabia, and United States of America