Sustainability in heavy industry is increasingly a competitiveness and security issue, not merely an ethical one. EU carbon pricing, fossil-free steel, military fuel efficiency, and Japan’s pollution reforms show how environmental costs can drive innovation. Indonesia’s coal-powered nickel boom, however, highlights the long-term economic and environmental liabilities of unsustainable industrial growth.
On August 12th, at a regional airfield in upstate New York, a 25,000-pound aircraft with a 106-foot wingspan lifted off the runway at Plattsburgh Airport and stayed aloft for 27 minutes on nothing but batteries. And this might just be what Indonesian airlines have been looking for.
The United States enjoys a unique position in which its currency serves as the primary reserve asset, invoicing currency, and settlement medium for global trade and finance. This position allows Washington to finance large fiscal deficits, including defense spending, at relatively low cost compared with other major powers.
Recently, the private sector has been given more leeway to develop and produce military equipments. This is a positive development as it reduces reliance on SOE’s and if managed correctly, can transform the Indonesian defense industry sector into a dual-use force that can simultaneously hasten the pursuit of self-sufficiency and becoming a major economic driver.
Ever since Russia launched its imperialist invasion of Ukraine, European defence companies have been scrambling to fill the sudden influx of new orders whilst simultaneously improving their own capacity following decades of stagnation due to the ‘peace dividend era’, amongst other things. One company currently taking off is Germany’s Rheinmetall, whose stock price has currently risen over 1000%.
Amid increasing geopolitical tensions, nations are enhancing their defense strategies. Indonesia aims for self-sufficiency in defense production, focusing on utilizing its mineral wealth for manufacturing essential military materials. The rise of private companies in the sector, combined with government reforms, suggests a transformative period for the Indonesian defense industry, presenting significant investment opportunities.
