March 14, 2025 • 12 mins
In this episode, Michelle delves into pivotal developments influencing Southeast Asia's economic landscape. She begins with an overview of top stories, focusing on Indonesia's potential journey towards joining BRICS and the resulting economic, social, and geopolitical impacts. The episode examines Indonesia's new forestry carbon trading program, exploring its market implications and significance for sustainable development. Michelle also discusses Oracle's investment in a data center on Batam Island, highlighting its economic impacts and potential to enhance regional technological infrastructure. The episode concludes with a call to action, encouraging listeners to stay informed on Southeast Asia's evolving economic scene.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, we'll delve into the benefits ofIndonesia's accession to BRICS, a move that
could significantly impact the country'seconomy and global standing.
Second, Indonesia is gearing up to launch aforestry carbon trading program, which aims to
(00:25):
tackle climate change while boosting economicgrowth.
Third, there's a report indicating thattechnology giant Oracle is considering a data
center investment on Indonesia's Batam Island.
Today, we're diving deep into the economic andsocial benefits that Indonesia stands to gain
from joining BRICS.
As one of the largest emerging markets,Indonesia's accession to BRICS is a strategic
(00:49):
move that could unlock a plethora ofopportunities for the country.
Membership in BRICS provides Indonesia withmore diversified sources of loans, including
access to the New Development Bank, whichoffers funding to accelerate infrastructure and
energy projects.
This aligns perfectly with Indonesia'sambitious growth targets.
(01:11):
BRICS membership opens doors for Indonesia toexpand its trade, creating opportunities to
boost exports and attract foreign directinvestment.
Economically, Indonesia's high IncrementalCapital Output Ratio could improve through
technological and financial partnerships withinthe BRICS framework.
Countries like China and India, known for theirexpertise in cost-efficient industrial and
(01:34):
infrastructure development, become valuablepartners for Indonesia.
President Prabowo Subianto’s goal of achievingan eight percent economic growth rate requires
significant resources and strategicpartnerships.
By fostering collaboration in energy,infrastructure, and trade, BRICS membership
supports Indonesia in working towards theseobjectives.
(01:58):
While Indonesia's projected growth rate of fiveto five-point-one percent for 2025 to 2026
surpasses the four percent average fordeveloping economies, BRICS membership could
provide the additional boost needed to approachpre-pandemic growth levels.
As the largest economy in Southeast Asia fordecades, Indonesia's accession to BRICS
(02:19):
reinforces its leadership role in theAssociation of Southeast Asian Nations while
bridging the region with BRICS.
Moreover, BRICS membership enhances theoptimization of Indonesia's natural resources.
The country can leverage its resource wealth,such as nickel and coal, to form strategic
partnerships with BRICS nations, particularlythose investing in renewable energy and
(02:44):
electric vehicle technologies.
Finally, Indonesia's accession to BRICS holdssignificant geopolitical value.
It strengthens the country's advocacy for amultipolar world and aligns with its vision of
supporting a balanced global order, wheredeveloping nations have greater influence.
For ordinary citizens, the influx of foreigndirect investment and expanded trade within
(03:07):
BRICS is expected to create more jobs in keyindustries like manufacturing, renewable
energy, and digital technology, which couldhelp reduce unemployment and strengthen the
country's middle class.
Additionally, citizens could benefit from lowercosts for essential goods and services, as
trade partnerships make imports like energy andtechnology more affordable.
(03:30):
Access to funding through the New DevelopmentBank could also accelerate infrastructure
development, improving transportation,healthcare, and education services that
directly impact citizens' quality of life.
Programs like the Kartu Indonesia Pintar, orSmart Indonesia Card, which currently target
low-income groups, could be expanded to includethe lower-middle class, alleviating the
(03:53):
financial burden of rising education andhealthcare costs.
This expansion, supported by BRICSpartnerships, would enable more Indonesians to
access quality education and healthcare,strengthening the country's human capital.
BRICS engagement could also promote socialchanges by reducing Indonesia's high
incremental capital output ratio, ensuring moreefficient use of investment funds.
(04:20):
This efficiency would drive economic growth andcreate a ripple effect, narrowing the wealth
gap and fostering greater economic equity.
Enhanced infrastructure funded by the NewDevelopment Bank would improve connectivity and
access to essential services, particularly inunderserved and rural areas, contributing to
more inclusive development.
(04:42):
Formal industries, bolstered by investments andtrade partnerships within BRICS, would regain
their competitiveness, creating better-payingjobs that help lift families into the
middle-income bracket.
Social initiatives, such as expanded healthcareand education programs supported by BRICS
partnerships, would empower individuals toimprove their quality of life and actively
(05:03):
participate in economic growth.
In summary, Indonesia's accession to BRICS ismore than just an economic strategy; it's a
pivotal shift that could redefine the country'sposition on the global stage.
By leveraging its natural resources and formingstrategic alliances, Indonesia is poised to not
only enhance its economic landscape but alsoadvocate for a more balanced and inclusive
(05:27):
global order.
Indonesia is taking a significant step towardscombating climate change and promoting
sustainable development with the launch of itsforestry carbon trading program.
This initiative, announced by the IndonesianMinister of Forestry Raja Juli Antoni, is set
to play a crucial role in reducing carbonemissions and facilitating the country’s
(05:50):
transition to a green economy.
The program is designed to manage Indonesia'sabundant natural resources more sustainably
while also providing economic benefits to localcommunities and businesses.
In its initial phase, the carbon tradingprogram will concentrate on forest management
schemes operated by private companies that holdForest Utilization Business Permits, as well as
(06:13):
Social Forestry projects.
These areas have varying capacities for carbonabsorption, which is a key factor in
determining their potential within the tradingscheme.
For instance, areas under Forest UtilizationBusiness Permits can absorb between 20 to 58
tons of carbon dioxide equivalent per hectare,with carbon credits priced between five to ten
(06:36):
United States Dollars per ton.
Meanwhile, Social Forestry projects boast ahigher absorption capacity of up to 100 tons
per hectare, with carbon credit prices reachingthirty Euros per ton.
The economic implications of this program aresubstantial.
By 2025, the potential for carbon trading inthe forestry sector is estimated to reach 26.5
(06:59):
million tons, with transaction values rangingfrom 1.6 trillion to 3.2 trillion Indonesian
Rupiah annually.
Looking further ahead, if optimized, thepotential carbon trading from the forestry
sector could soar to between 97.9 and 258.7trillion Rupiah per year by 2034.
(07:20):
This could contribute significantly toIndonesia's tax revenues, with expected
contributions ranging from 23 to 60 trillionRupiah in taxes and an additional 9.7 to 25.8
trillion Rupiah in non-tax state revenueannually.
Beyond its economic benefits, the program isexpected to create approximately 170,000 job
(07:44):
opportunities in various carbon projectlocations across the country.
This job creation is not solely about reducingemissions; it is also about accelerating
reforestation efforts through conservation andthe Afforestation, Reforestation, and
Revegetation strategy.
These efforts are essential to reversing thedegradation of Indonesia's forests and ensuring
(08:08):
their sustainability for future generations.
To enhance Indonesia’s competitiveness in theglobal carbon trading market, the Ministry of
Forestry, in collaboration with the Ministry ofEnvironment, is working closely with the
President’s Special Envoy for Climate Affairs,Hashim Djojohadikusumo.
A key strategic step in this collaboration isthe completion of the Mutual Recognition
(08:30):
Agreement with international institutions suchas Verra, Gold Standard, and Plan Vivo, which
is targeted for completion by May 2025.
This agreement is crucial for ensuring thecredibility and transparency of Indonesia's
carbon credits on the international stage.
The government is also in the process ofrevising Presidential Regulation Number 98 of
(08:52):
2021, which concerns the Implementation ofCarbon Economic Value.
The aim is to improve the effectiveness andtransparency of the carbon trading program,
ensuring it meets international standards andmaximizes its impact on reducing emissions and
fostering economic growth.
Minister Raja Juli Antoni emphasized that thiscarbon trading initiative is aligned with
(09:15):
President Prabowo Subianto's Asta Cita vision,which seeks to balance economic growth with
environmental sustainability.
By positioning carbon trading as a primarydriver of green economic development, the
program aims to enhance food and energysecurity while reinforcing Indonesia's
commitment to tackling climate change.
(09:37):
Oracle Corporation is considering a substantialinvestment in a new data center on Indonesia's
Batam Island.
According to a report by Bloomberg News, thetechnology giant is in discussions with the
Indonesian government about establishing acloud services center in this strategic
location.
This potential investment aligns with Oracle'songoing strategy to expand its cloud
(09:59):
infrastructure across Asia.
The choice of Batam Island is particularlysignificant due to its designation as a "free
trade zone." This status offers severaleconomic advantages, including tax incentives
and reduced regulatory burdens, making it anattractive location for international
businesses.
Additionally, Batam's proximity to Singaporeand Malaysia, where Oracle already has plans
(10:24):
for cloud service operations, further enhancesits appeal as a hub for regional operations.
Oracle's interest in expanding its cloudinfrastructure in Southeast Asia is part of a
broader regional strategy.
The company recently announced plans to investover six and a half billion United States
Dollars to establish its first public cloudregion in Malaysia.
(10:48):
This move underscores Oracle's commitment tostrengthening its presence in Asia, a region
poised for significant digital growth.
Garrett Ilg, Oracle's executive vice presidentfor Japan and Asia Pacific, emphasized the
company's ambition to extend its data centernetwork across the continent.
This expansion plan includes developinginfrastructure projects "from Japan all the way
(11:11):
down to New Zealand and all the way to India,"highlighting Oracle's intent to become a
leading cloud services provider in the AsiaPacific region.
Currently, Oracle operates two cloud computingfacilities in Singapore and boasts fifty public
cloud regions across twenty-four countries.
The potential addition of a data center onBatam Island would not only bolster Oracle's
(11:34):
operational capacity in Southeast Asia but alsosupport the region's digital transformation by
providing improved access to cloud services forbusinesses and governments.
The establishment of a data center on BatamIsland could also have far-reaching economic
implications for Indonesia.
It would likely attract further foreign directinvestment, boost local employment, and enhance
(11:57):
the island's infrastructure.
As Indonesia continues to position itself as adigital economy leader in the region,
investments from global technology firms likeOracle are crucial for driving innovation and
economic growth.
Oracle's discussions with the Indonesiangovernment are ongoing, and while no official
statements have been made, the interest inBatam Island reflects the island's potential as
(12:21):
a strategic digital hub in Southeast Asia.
The move would align with Indonesia's broadereconomic goals of enhancing digital
infrastructure and attracting moretechnology-driven investments.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
to click ‘Follow’ in your podcast app.
(12:42):
Thanks again for listening, and hope to catchyou next time.
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, we'll delve into the benefits ofIndonesia's accession to BRICS, a move that
could significantly impact the country'seconomy and global standing.
Second, Indonesia is gearing up to launch aforestry carbon trading program, which aims to
(00:25):
tackle climate change while boosting economicgrowth.
Third, there's a report indicating thattechnology giant Oracle is considering a data
center investment on Indonesia's Batam Island.
Today, we're diving deep into the economic andsocial benefits that Indonesia stands to gain
from joining BRICS.
As one of the largest emerging markets,Indonesia's accession to BRICS is a strategic
(00:49):
move that could unlock a plethora ofopportunities for the country.
Membership in BRICS provides Indonesia withmore diversified sources of loans, including
access to the New Development Bank, whichoffers funding to accelerate infrastructure and
energy projects.
This aligns perfectly with Indonesia'sambitious growth targets.
(01:11):
BRICS membership opens doors for Indonesia toexpand its trade, creating opportunities to
boost exports and attract foreign directinvestment.
Economically, Indonesia's high IncrementalCapital Output Ratio could improve through
technological and financial partnerships withinthe BRICS framework.
Countries like China and India, known for theirexpertise in cost-efficient industrial and
(01:34):
infrastructure development, become valuablepartners for Indonesia.
President Prabowo Subianto’s goal of achievingan eight percent economic growth rate requires
significant resources and strategicpartnerships.
By fostering collaboration in energy,infrastructure, and trade, BRICS membership
supports Indonesia in working towards theseobjectives.
(01:58):
While Indonesia's projected growth rate of fiveto five-point-one percent for 2025 to 2026
surpasses the four percent average fordeveloping economies, BRICS membership could
provide the additional boost needed to approachpre-pandemic growth levels.
As the largest economy in Southeast Asia fordecades, Indonesia's accession to BRICS
(02:19):
reinforces its leadership role in theAssociation of Southeast Asian Nations while
bridging the region with BRICS.
Moreover, BRICS membership enhances theoptimization of Indonesia's natural resources.
The country can leverage its resource wealth,such as nickel and coal, to form strategic
partnerships with BRICS nations, particularlythose investing in renewable energy and
(02:44):
electric vehicle technologies.
Finally, Indonesia's accession to BRICS holdssignificant geopolitical value.
It strengthens the country's advocacy for amultipolar world and aligns with its vision of
supporting a balanced global order, wheredeveloping nations have greater influence.
For ordinary citizens, the influx of foreigndirect investment and expanded trade within
(03:07):
BRICS is expected to create more jobs in keyindustries like manufacturing, renewable
energy, and digital technology, which couldhelp reduce unemployment and strengthen the
country's middle class.
Additionally, citizens could benefit from lowercosts for essential goods and services, as
trade partnerships make imports like energy andtechnology more affordable.
(03:30):
Access to funding through the New DevelopmentBank could also accelerate infrastructure
development, improving transportation,healthcare, and education services that
directly impact citizens' quality of life.
Programs like the Kartu Indonesia Pintar, orSmart Indonesia Card, which currently target
low-income groups, could be expanded to includethe lower-middle class, alleviating the
(03:53):
financial burden of rising education andhealthcare costs.
This expansion, supported by BRICSpartnerships, would enable more Indonesians to
access quality education and healthcare,strengthening the country's human capital.
BRICS engagement could also promote socialchanges by reducing Indonesia's high
incremental capital output ratio, ensuring moreefficient use of investment funds.
(04:20):
This efficiency would drive economic growth andcreate a ripple effect, narrowing the wealth
gap and fostering greater economic equity.
Enhanced infrastructure funded by the NewDevelopment Bank would improve connectivity and
access to essential services, particularly inunderserved and rural areas, contributing to
more inclusive development.
(04:42):
Formal industries, bolstered by investments andtrade partnerships within BRICS, would regain
their competitiveness, creating better-payingjobs that help lift families into the
middle-income bracket.
Social initiatives, such as expanded healthcareand education programs supported by BRICS
partnerships, would empower individuals toimprove their quality of life and actively
(05:03):
participate in economic growth.
In summary, Indonesia's accession to BRICS ismore than just an economic strategy; it's a
pivotal shift that could redefine the country'sposition on the global stage.
By leveraging its natural resources and formingstrategic alliances, Indonesia is poised to not
only enhance its economic landscape but alsoadvocate for a more balanced and inclusive
(05:27):
global order.
Indonesia is taking a significant step towardscombating climate change and promoting
sustainable development with the launch of itsforestry carbon trading program.
This initiative, announced by the IndonesianMinister of Forestry Raja Juli Antoni, is set
to play a crucial role in reducing carbonemissions and facilitating the country’s
(05:50):
transition to a green economy.
The program is designed to manage Indonesia'sabundant natural resources more sustainably
while also providing economic benefits to localcommunities and businesses.
In its initial phase, the carbon tradingprogram will concentrate on forest management
schemes operated by private companies that holdForest Utilization Business Permits, as well as
(06:13):
Social Forestry projects.
These areas have varying capacities for carbonabsorption, which is a key factor in
determining their potential within the tradingscheme.
For instance, areas under Forest UtilizationBusiness Permits can absorb between 20 to 58
tons of carbon dioxide equivalent per hectare,with carbon credits priced between five to ten
(06:36):
United States Dollars per ton.
Meanwhile, Social Forestry projects boast ahigher absorption capacity of up to 100 tons
per hectare, with carbon credit prices reachingthirty Euros per ton.
The economic implications of this program aresubstantial.
By 2025, the potential for carbon trading inthe forestry sector is estimated to reach 26.5
(06:59):
million tons, with transaction values rangingfrom 1.6 trillion to 3.2 trillion Indonesian
Rupiah annually.
Looking further ahead, if optimized, thepotential carbon trading from the forestry
sector could soar to between 97.9 and 258.7trillion Rupiah per year by 2034.
(07:20):
This could contribute significantly toIndonesia's tax revenues, with expected
contributions ranging from 23 to 60 trillionRupiah in taxes and an additional 9.7 to 25.8
trillion Rupiah in non-tax state revenueannually.
Beyond its economic benefits, the program isexpected to create approximately 170,000 job
(07:44):
opportunities in various carbon projectlocations across the country.
This job creation is not solely about reducingemissions; it is also about accelerating
reforestation efforts through conservation andthe Afforestation, Reforestation, and
Revegetation strategy.
These efforts are essential to reversing thedegradation of Indonesia's forests and ensuring
(08:08):
their sustainability for future generations.
To enhance Indonesia’s competitiveness in theglobal carbon trading market, the Ministry of
Forestry, in collaboration with the Ministry ofEnvironment, is working closely with the
President’s Special Envoy for Climate Affairs,Hashim Djojohadikusumo.
A key strategic step in this collaboration isthe completion of the Mutual Recognition
(08:30):
Agreement with international institutions suchas Verra, Gold Standard, and Plan Vivo, which
is targeted for completion by May 2025.
This agreement is crucial for ensuring thecredibility and transparency of Indonesia's
carbon credits on the international stage.
The government is also in the process ofrevising Presidential Regulation Number 98 of
(08:52):
2021, which concerns the Implementation ofCarbon Economic Value.
The aim is to improve the effectiveness andtransparency of the carbon trading program,
ensuring it meets international standards andmaximizes its impact on reducing emissions and
fostering economic growth.
Minister Raja Juli Antoni emphasized that thiscarbon trading initiative is aligned with
(09:15):
President Prabowo Subianto's Asta Cita vision,which seeks to balance economic growth with
environmental sustainability.
By positioning carbon trading as a primarydriver of green economic development, the
program aims to enhance food and energysecurity while reinforcing Indonesia's
commitment to tackling climate change.
(09:37):
Oracle Corporation is considering a substantialinvestment in a new data center on Indonesia's
Batam Island.
According to a report by Bloomberg News, thetechnology giant is in discussions with the
Indonesian government about establishing acloud services center in this strategic
location.
This potential investment aligns with Oracle'songoing strategy to expand its cloud
(09:59):
infrastructure across Asia.
The choice of Batam Island is particularlysignificant due to its designation as a "free
trade zone." This status offers severaleconomic advantages, including tax incentives
and reduced regulatory burdens, making it anattractive location for international
businesses.
Additionally, Batam's proximity to Singaporeand Malaysia, where Oracle already has plans
(10:24):
for cloud service operations, further enhancesits appeal as a hub for regional operations.
Oracle's interest in expanding its cloudinfrastructure in Southeast Asia is part of a
broader regional strategy.
The company recently announced plans to investover six and a half billion United States
Dollars to establish its first public cloudregion in Malaysia.
(10:48):
This move underscores Oracle's commitment tostrengthening its presence in Asia, a region
poised for significant digital growth.
Garrett Ilg, Oracle's executive vice presidentfor Japan and Asia Pacific, emphasized the
company's ambition to extend its data centernetwork across the continent.
This expansion plan includes developinginfrastructure projects "from Japan all the way
(11:11):
down to New Zealand and all the way to India,"highlighting Oracle's intent to become a
leading cloud services provider in the AsiaPacific region.
Currently, Oracle operates two cloud computingfacilities in Singapore and boasts fifty public
cloud regions across twenty-four countries.
The potential addition of a data center onBatam Island would not only bolster Oracle's
(11:34):
operational capacity in Southeast Asia but alsosupport the region's digital transformation by
providing improved access to cloud services forbusinesses and governments.
The establishment of a data center on BatamIsland could also have far-reaching economic
implications for Indonesia.
It would likely attract further foreign directinvestment, boost local employment, and enhance
(11:57):
the island's infrastructure.
As Indonesia continues to position itself as adigital economy leader in the region,
investments from global technology firms likeOracle are crucial for driving innovation and
economic growth.
Oracle's discussions with the Indonesiangovernment are ongoing, and while no official
statements have been made, the interest inBatam Island reflects the island's potential as
(12:21):
a strategic digital hub in Southeast Asia.
The move would align with Indonesia's broadereconomic goals of enhancing digital
infrastructure and attracting moretechnology-driven investments.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
to click ‘Follow’ in your podcast app.
(12:42):
Thanks again for listening, and hope to catchyou next time.
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.