Indonesia’s rise is the big story we’re missing
Can Australia handle having a stronger, richer neighbour?
AUSTRALIANS see Indonesia today through a kaleidoscope of negative images: Islamic terrorists, people smugglers, dreadful tsunamis, violence in East Timor, brutal abattoirs, Australians on drug charges. Schapelle Corby’s ordeal somehow typifies the whole thing.
But we are missing the big story. Indonesia’s economy is growing so strongly that, according to Citibank, it will be the fourth largest in the world by 2040. Our big neighbour will then be three or four times richer than us. Already its GDP has overtaken ours by about 15 per cent.
Of course, Indonesia still has deep problems that could derail its growth, but we would be dumb to bet on that. We’d be much smarter to start asking what we will do if Indonesia quickly draws ahead to become richer and more powerful than us.