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Indonesia Climbs the Chain

Oliver Kim · 29 Jul 2025 · global-developments.org

5 korrents from this piece

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  1. In our world, we know of no escape from poverty other than climbing the value chain.
  2. Morowali’s poverty rate has seen a modest decline since 2016, from around 15% to 12%, but this puts it squarely in the middle of the pack of other Sulawesi districts—and not far from the decline in the national average, which fell from 10.9% to 8.6% over the same period.
  3. But, peering past the hype around Morowali reminds us that we should be careful before assuming that industrial policy must be pro-poor.
  4. Poverty reduction is never a purely technocratic exercise, and questions about industrial policy can never be entirely divorced from those of political economy—including those of global geopolitics.
  5. It’s one thing if residents of Sulawesi like Mr. Jamal and his family have had to risk exposure to toxic pollutants in a successful escape from poverty. It’s another thing entirely if those bearing most of the burden see few of the benefits.