As a senior advisor on strategic economic affairs in charge of economic diplomacy, business economics and nation branding for Indonesia’s portfolios in 2016-17, I learned early on about the country’s plans to build numerous coal-fired power plants to meet its growing energy demand. Foreseeing the potential consequences, I remarked to a colleague: “China still struggles with air pollution from coal plants, which contributes to health issues and climate change. Shouldn’t we learn from their experience and aim for cleaner growth?”
Unfortunately, we were told there was nothing that we could do. Over the following years, Jakarta’s air quality began to deteriorate: a World Bank report found that in 2019, PM2.5 air pollution in Indonesia resulted in estimated economic costs of USD 74 billion and caused roughly 183,000 deaths.
Development beyond growth
Like many policymakers, I once believed that to alleviate poverty, we needed to accelerate economic growth and tolerate pollution. I thought that, once my country was richer, we could clean up the pollution. This belief has proven both harmful and costly. In 1996, an OECD study found that early environmental investment didn’t compromise economic growth; in fact, countries that delayed its adoption paid higher cumulative costs later.
Such studies make clear that policymakers must discard the “grow now, clean later” model. Through my research at Tsinghua University’s Institute of Climate Change and Sustainable Development (ICCSD) in Beijing, I’ve learned how integrated governance of climate, air pollution and economic development can help countries achieve domestic policy goals and fulfil international climate commitments.
China’s “war on air pollution” exemplifies this approach. Beijing’s air quality has markedly improved, and the country is now the world’s largest producer of solar panels, wind turbines and electric vehicles. Two factors stand out in China’s success:
i. Leadership commitment. Top leaders must prioritise pollution control, low-emission development and stopping climate change, providing firm strategic direction across government.
ii. Dedicated oversight. A dedicated ministry, such as China’s Ministry of Ecology and Environment, can coordinate policies, technology and financial investments.
Achieving integrated governance means sectors must collaborate. The industrial sector must enforce pollution control; the energy sector must accelerate clean energy transitions, and all sectors should align with net-zero goals.
Governments need to implement measures such as carbon pricing, green subsidies, guaranteed public procurement, and state investments. Cutting-edge technologies, like near real-time carbon monitoring, are crucial to correctly measure emissions and ensure effective policies to prevent pollution.
Air quality and investment
Improving air quality requires sustained investment in pollution monitoring, emission control, and clean energy. In Indonesia, we still lack pollution-prevention solutions, and our heavy reliance on coal power and petrol-burning vehicles must urgently shift.
China, the world leader in solar, battery and electric vehicle production, could be a major investor. Since 2014, Chinese solar companies have made substantial investments in Vietnam, creating jobs and upskilling local workers. In March 2023, China’s leading electric vehicle manufacturer BYD broke ground on its first plant in Thailand, marking the latest move by Chinese automakers to expand their footprint in Southeast Asia.
For Indonesia and other Global South countries to attract Chinese investment and China’s world-class environmental technology companies, we must align our infrastructure projects and policy goals with China’s global green development strategy and mission of ecological civilisation. This means offering investment opportunities that can simultaneously provide mutual economic benefit and improve air quality, such as in renewables, emissions reduction, waste-to-energy facilities with air pollution controls, nature-based solutions and sustainable ecological protection compensation mechanisms that have proven successful in China.
In his first official state visit, Indonesian President Prabowo Subianto met with Chinese President Xi Jinping in early November, where the two sides announced USD 10 billion in new Chinese investments in Indonesia. The official joint statement from the meeting mentioned cooperation areas, including new energy vehicles, batteries, solar PV, and the establishment of a Green Mineral Resources Partnership. This is a promising first step, which must be closely and carefully followed up to ensure alignment to Indonesia’s and China’s long-term social and environmental goals, and the protection of both countries’ reputations.
Global South solidarity
Global South countries, home to 85% of the world’s population, are among the most affected by air pollution and climate change. Establishing a unified global system where every country contributes to reducing greenhouse gas emissions equitably could be transformative.
Such an endeavour to unite Global South countries has been achieved before. In April 1955, leaders from 29 Asian and African nations, including Indonesian President Soekarno and Chinese Premier Zhou Enlai, gathered in Bandung, Indonesia, and laid the foundation for non-alignment during the Cold War. In facing today’s planetary crisis, I believe the Global South needs to revisit this spirit of solidarity and establish an International Climate Union through which to share best practices in policy, technology and finance. This would be a concrete follow-up to Indonesia and China pledging to take leading roles in advancing South-South cooperation and promoting global governance reform, as prominently mentioned in the joint statement.
During my time in China, I encountered enthusiastic partners – from scientists and NGOs to enterprises and government agencies – who could be instrumental in collaborative efforts. Such partnerships can improve air quality, stimulate economic growth, and enable us to integrate into global green supply chains.
The opportunities to tackle air pollution and climate change abound, but to seize them, our governments must adopt new approaches.
