During an investor summit hosted by Indonesia’s national bank on October 8, President Joko Widodo articulated his vision for the country’s economic future, emphasizing a significant shift in the global economic landscape toward Asia. He believes that Indonesia, alongside India and China, holds the potential to establish itself as one of Asia’s three economic superpowers.
In his speech, President Widodo proclaimed that we are entering an “Asian era,” indicating a transition in the global economy from Western dominance. He identified India, China, and Indonesia as the front runners in this evolving economic environment. However, he acknowledged that Indonesia faces a number of challenges on its path to superpower status.
Among these challenges, he pointed to a slowdown in global economic growth, which currently stands between 2.7% and 2.8%. He also highlighted the rising geopolitical tensions that contribute to an uncertain global economic climate.
Despite these hurdles, Indonesia’s economy saw a growth rate of 5.08% in the first half of this year. President Widodo emphasized that as the largest nation by population in Southeast Asia, Indonesia is well-positioned to be a vital economic engine for the region. He underscored the importance of sustaining economic growth above 5%, or ideally meeting the 8% goal set by presidential candidate Prabowo, as critical steps toward attaining developed nation status.
The president also stressed the value of advancing downstream industries and embracing digitalization. He cited the mining sector as a key area for improvement, advocating for policies such as banning the export of unprocessed nickel to encourage domestic processing into higher-value products. He urged the government to implement this resource strategy in other industries, including the seaweed sector. “If we unify our efforts and stay committed to our strategy, Indonesia’s aspiration to become an economic superpower can genuinely be realized,” he asserted.
