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Indonesian presidential vote highlights tradeoffs between fast growth and a healthy environment

JAKARTA, Indonesia (AP) — A presidential election in Indonesia, the world’s third-largest democracy, is highlighting choices to be made as the country seeks to profit from its rich reserves of nickel and other resources that are vital to the global transition away from fossil fuels.

President Joko Widodo capitalized on Indonesia’s abundant nickel, coal, oil and gas reserves as he led Southeast Asia’s biggest economy through a decade of rapid growth and modernization that vastly expanded the country’s networks of roads and railways

Increasingly, voters are demanding that the men vying to succeed him address the tradeoffs between fast growth and a healthy environment in the world’s fourth most populated country.

Indonesia has the world’s largest reserves of nickel — a critical material for electric vehicles, solar panels and other goods needed for the green energy transition.

It’s also the biggest producer of palm oil, one of the largest exporters of coal and a top producer of pulp for paper. It also exports oil and gas, rubber, tin and other resources.

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President Joko Widodo capitalized on Indonesia’s abundant nickel, coal, oil and gas reserves as he led Southeast Asia’s biggest economy through a decade of rapid growth and modernization that vastly expanded the country’s networks of roads and railways.

President Joko Widodo — who must step down after a second term due to a constitutional two-term limit — prioritized economic growth, welcoming foreign investments in manufacturing and other industries and building infrastructure such as the country’s first high-speed railway.

To speed up development of key industries, Widodo banned exports of certain raw commodities such as nickel and bauxite, which is used to make aluminum, obliging companies to build refineries to process and add value to what Indonesia sells to the rest of the world.

“As EV batteries need more than just nickel, Indonesia must engage with many countries, including those with internationally-oriented automotive industries,” said Arianto Patunru, an economist at Australian National University.

Baswedan has criticized them for neglecting local community needs and failing to grow suitable crops, pointing to the failure of cassava fields at a food estate in Kalimantan.

Many voters believe Indonesia needs a greener and more inclusive approach to growth, says Bhima Yudhistira Adhinegara, executive director of the Indonesia-based Center of Economic and Law Studies.

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