Tag: Indonesia and China business

Indonesia is one of the countries affected by the latest US trade tariffs. The imposition of import tariffs from a number of countries, including 32% for Indonesian goods entering the United States (US), was announced by US President Donald Trump on Wednesday (2/4/2025) local time. INDEF economist Eisha Maghfiruha Rachbini explained that the implementation of tariffs on Indonesian export products to the US would have a direct impact. The tariffs will have a significant impact on Indonesia’s exports to the US, such as textiles, footwear, electronics, furniture, and agricultural and plantation products, such as palm oil, rubber, and fisheries.

“In theory, with the implementation of tariffs, there will be trade diversion from low-cost markets to high-cost markets. So that it will have an impact on high costs for exporters for superior commodities and slow production and employment,” said Eisha in her official statement, quoted Thursday (3/4/2025).

She also believes that the government needs to conduct trade negotiations with the US immediately in order to minimize the impact of tariffs on Indonesian export products to the US. Diplomatic negotiation power is very crucial in mitigating the impact of the trade war with the US.

“The government needs to optimize bilateral and multilateral trade agreements, CEPA, and initiate cooperation agreements with non-traditional countries to encourage exports of affected products, such as textiles, footwear, electronics, furniture, and agricultural and plantation products, such as palm oil, rubber, fisheries. So that exporters and affected industries can shift export markets,” he said.

Not only that, financial incentive policies, subsidies, and tax breaks also need to be implemented by the government to help businesses overcome increased costs and reduced demand due to the impact of tariffs and the US trade war.

In response to trade tariffs, the government of President Prabowo Subianto claims to have prepared a strategy to counter the impact of US President Donald Trump’s policy regarding import tariffs. According to the Deputy for Dissemination and Information Media of the Presidential Communications Office (PCO) Noudhy Valdryno, there are three “major breakthroughs” that have been made long ago to deal with the turmoil.

He said that these three policies synergize to keep Indonesia growing and developing even in a situation of global economic disruption. The three policies include:

1. Expansion of Trading Partners

Noudhy explained that Indonesia’s joining the BRICS economic alliance strengthens Indonesia’s position in international trade. According to him, Indonesia’s membership in BRICS strengthens various multilateral trade agreements. Indonesia has signed agreements such as the Regional Comprehensive Economic Partnership (RCEP) with 10 ASEAN countries and Australia, China, Japan, South Korea, and New Zealand, which covers 27% of global trade, as well as accession to the Organization for Economic Cooperation and Development (OECD) which covers 64% of global trade. Including several other trade agreements CP-TPP, IEU-CEPA, and I-EAEU CEPA.

2. Acceleration of Downstream Natural Resources

According to Noudhy, the Prabowo government prioritizes downstream policies. One successful example is the nickel commodity. In addition, Prabowo has also launched the Danantara Investment Management Agency which is claimed to accelerate the downstreaming of strategic Natural Resources.

“BPI Danantara will fund and manage downstream projects in key sectors such as minerals, coal, oil, natural gas, plantations, maritime, fisheries, and forestry,” he said.

3. Strengthening Domestic Consumption

According to Noudhy, the Free Nutritious Meal Program and the establishment of 80,000 red and white village cooperatives aim to increase domestic consumption and reduce dependence on imports, as well as strengthen the domestic economy. It is hoped that the program can boost household consumption which contributes 54% of Indonesia’s GDP.

“By strengthening international trade relations, optimizing the potential of natural resources, and increasing domestic consumption, President Prabowo has proven that Indonesia can continue to grow even in the midst of a global situation full of uncertainty,” said Noudhy.

April 3, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250403175307-4-623475/trump-kenakan-tarif-32-ekonom-indef-wanti-wanti-dampaknya-ke-ri) (https://www.cnbcindonesia.com/news/20250403213130-4-623513/ini-tiga-senjata-presiden-prabowo-hadapi-tarif-trump)

PT AM/NS Indonesia, one of the iron and steel producers in Indonesia, exported 10,000 tons of Zinc-coated Steel (Galvanized) products to the United States (US) market. The export value of this shipment reached around US$ 10 million. President Director of PT AM/NS Indonesia, Murali Krishna Chunduru, said that this export activity was an important part of the company’s efforts to strengthen its business in the international market.

“This export is one of the strategic achievements for the company in expanding market reach and strengthening our position in the global market,” said Murali in an official statement, Wednesday (4/30/2025).

Currently, the United States and Canada are the main export markets for PT AM/NS Indonesia’s galvanized products. The company targets exports to the US of 5,000 – 6,000 tons per month, and exports to Canada of around 3,000-4,000 tons per quarter, depending on market dynamics.

In addition to strengthening the main market, PT AM/NS Indonesia also plans to expand access to newly targeted markets such as Europe, Malaysia, and Australia, along with the opportunities that arise due to trade protection policies from various countries. Murali said that amidst this export achievement, the national steel industry still faces structural challenges. One of them is the rampant import of non-standard steel that has not received maximum protection from domestic regulations.

“We need government intervention to stop the entry of non-standard steel, such as products with substandard thickness or lower protective coatings,” Murali added.

Regarding the steel import tariff policy to the US, Murali said that steel products are subject to a flat tariff of 25% under Section 232. However, this condition actually opens up opportunities for the company considering that several competing countries such as China, Vietnam, and India are subject to higher anti-dumping duties.

“We have a competitive advantage in terms of both quality and price, so we are able to meet the needs of the US market which is now looking for new suppliers,” he said.

The company is targeting sales this year of 300,000 tons, growing around 8-9% compared to the previous year. The company also continues to commit to improving product quality to meet domestic and international market demand. “We will continue to innovate and maintain world-class manufacturing standards across our product lines,” Murali said.

April 30, 2025, detikFinance

(https://finance.detik.com/industri/d-7893004/ri-ekspor-10-000-ton-baja-lapis-seng-ke-as-us-10-juta)

The World Bank estimates that Indonesia’s economic growth will grow by 4.7% this year. This projection was released in the Regional Economic Update 2025 report, today, Friday (4/25/2025). This projection for Indonesia is lower than the projection at the beginning of this year, which was 5.1%. This projection is based on the uncertain global situation which has hampered investment and consumption in the East Asia and Pacific region. In addition, trade restrictions will also affect the economic growth of Indonesia and East Asian countries.

“Trade restrictions are expected to impact the level of East Asia and Pacific exports, while slowing global growth is likely to further reduce external demand,” wrote the World Bank.

The World Bank’s projection is the same as the projections of BI and the International Monetary Fund (IMF). Last Tuesday (22/4/2025), the IMF estimated that Indonesia’s economic growth would reach 4.7% in 2025. The IMF cut Indonesia’s economic growth quite sharply to 4.7% in 2025 and 2026. This projection is much lower than the forecast in January 2025. At that time, the IMF projected that Indonesia’s economy would grow by 5.1%. This projection reduction is similar to the global economic slowdown due to the high trade tariff war, which was first implemented by US President Donald Trump against its main trading partner countries, and China responded with high reciprocal tariffs.

“If it continues, the sudden increase in tariffs and the uncertainty that accompanies it will slow global growth significantly,” said IMF Chief Economist Pierre-Olivier Gourinchas at a press conference on Tuesday night (22/4/2025) Indonesian time.

In line with the IMF, Bank Indonesia (BI) estimates that Indonesia’s economic growth has the potential to weaken this year, due to the tariff war between the main trading partners of the United States and China. BI Governor Perry Warjiyo said that the trade war that hampers international trade activities and investment will cause the economy to move in the lower range of the midpoint of 4.7%-5.5%.

“Slightly below the midpoint of the 4.7%-5.5% range is influenced by US tariffs that reduce Indonesian exports to the US and a decrease in export demand from other countries,” Perry emphasized during a press conference on the results of the Bank Indonesia Board of Governors (RDG) Meeting, quoted on Thursday (24/4/2025).

BI’s economic growth projection for the lower point of 4.7% is similar to the IMF’s projection of the potential slowdown in the Indonesian economy this year to 2026, which is also in the range of 4.7%.

April 25, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250425113522-4-628699/bank-dunia-imf-dan-bi-kompak-ramal-ekonomi-ri-tumbuh-47-di-2025)

The United Nations cultural body has recognized two geoparks in Central Java and South Kalimantan, namely Kebumen and Meratus, as UNESCO global geoparks, the Foreign Ministry said on Tuesday. They are among the 16 new global geoparks that have just been approved by the UNESCO executive board in a session in Paris, France, the ministry said in the press release. This followed their nominations by the Global Geoparks Council late last year.

“The UNESCO recognition is evidence of Indonesia’s contribution to preserving Earth heritage,” Mohamad Oemar, Indonesia permanent delegation to UNESCO, said in the press release from the Foreign Ministry on Tuesday.

“At the same time, it signifies a responsibility to preserve, manage sustainably and promote our geological sites and culture,” said Oemar, who is also the ambassador to France.

Located in the southern part of Central Java, Kebumen geopark stretches across an area of about 1,100 square kilometers. According to a UNESCO document, the geopark has conical hills to the southwest and flat alluvial plains to the southeast. The highlight of the geopark is its records of plate tectonic activities that date back as far as 119 million years ago.

The Meratus geopark, meanwhile, covers an area of about 3,600 sq km at the southern tip of South Kalimantan. The landscape has many valleys, waterfalls, rivers, lakes and karst landforms. It is home to Banjar and Dayak people.The geopark features the Meratus Mountains, which are characterized by ophiolite, an exposed oceanic crust that is globally rare. According to the UNESCO document, although ophiolites are found elsewhere in Indonesia, the Meratus Mountains preserve the most complete ophiolite sequence and the oldest in the country.

A UNESCO global geopark is an area that features landscapes of international geological significance. A geopark must be managed with a concept that combines conservation, public outreach and sustainable development.

The inclusion of Kebumen and Meratus brings the number of Indonesian geoparks in the UNESCO list of global geoparks to 12. They include famous tourist destinations Raja Ampat in Papua, which is known for its underwater beauty, and Rinjani-Lombok geopark in West Nusa Tenggara that features Mount Rinjani, known for its breathtaking peak and crescent-shaped crater lake named Segara Anak.

Other geoparks are Toba caldera in North Sumatra, Batur in Bali, Ciletuh in West Java, Ijen in East Java, Belitung in Bangka Belitung Islands, Merangin in Jambi, Maros Pangkep in South Sulawesi and Mount Sewu, which is located along the borders of three provinces in Java.

Holding the status of UNESCO global geopark can help local communities boost tourism. Apart from Indonesia, several other countries had their geoparks recognized this year, such as Norway with its Fjord Coast, Vietnam with Lang Son, South Korea with Danyang and Gyeongbuk Donghaean, North Korea with Mount Paektu and Ecuador with Tungurahua Volcano and Napo Sumaco.

April 16, 2025, The Jakarta Post

(https://www.thejakartapost.com/indonesia/2025/04/16/two-more-indonesian-geoparks-get-unesco-recognition.html)

The first Indonesia-Australia digital training platform has been officially launched to connect Indonesian businesses with Australian training providers. Accessed via iaskills.org, the Indonesia-Australia Skills Exchange (IASE) platform has attracted the interest of more than 120 Indonesian business entities and more than 50 Australian training providers. This digital platform offers 335 courses in various subjects. Leading Australian institutions that have joined this platform are Melbourne Polytechnic, Swinburne University of Technology, TAFE New South Wales, TAFE South Australia, and others.

The launch of this innovative business-to-business platform is a collaboration between the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) Economic Cooperation Program Katalis with the Indonesian E-Commerce Association (idEA).

Katalis Director Paul Bartlett explained that the courses offered by this program are very diverse. Starting from technical courses to soft skill development. Iaskills.org provides a variety of training opportunities for businesses in Indonesia. This platform bridges the local skills gap and plays an important role in improving workforce skills in various sectors.

“This digital platform responds to the need for quality workforce training in the Indonesian industry and expands the international market for Australian training providers. The high interest from both countries reflects shared optimism about this strategic opportunity to strengthen bilateral partnerships and support the implementation of the Indonesia-Australia Comprehensive Economic Cooperation Agreement (IA-CEPA),” Paul was quoted as saying on Thursday (27/2/2025).

Executive Director of the Indonesia Services Dialogue Council Devi Ariyani said that for the first time, businesses in Indonesia can access Australian training that is specifically designed to suit their needs.

“This will help the Indonesian service industry to develop local talent and access the skills needed to thrive in the modern business environment. We look forward to more collaborations in the future between businesses in Indonesia and Australian training providers,” he explained.

idEA Chairman Hilmi Adrianto added that the IASE platform has a variety of capabilities and features designed to meet training needs, such as online, offline or hybrid delivery options, as well as language preferences and course types.

“idEA welcomes this initiative, which pioneers new opportunities for Indonesian businesses to accelerate their capabilities and stand out in the highly dynamic global digital economy. Targeted training to build a highly skilled workforce is an important foundation for Indonesia’s digital economy industry to advance and become more competitive and globally connected,” he said.

February 28, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/tech/20250227193158-37-614301/platform-b2b-indonesia-australia-skills-exchange-resmi-diluncurkan)

Apple will build a Research and Development (R&D) Facility in Indonesia. This plan was conveyed by the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita after an agreement was reached between the Ministry of Industry and Apple regarding investment.

The United States (US) technology giant agreed to continue its investment commitment in Indonesia and chose an innovation scheme to meet the requirements for the domestic component level (TKDN). The innovation scheme will later take the form of an R&D facility.

“The next point that we always pursue, and Alhamdulillah with very tough negotiations, can be in the MoU agreement between Indonesia and Apple, namely the establishment of a Research and Development (R&D) Facility in Indonesia,” said Agus in a press conference at the Ministry of Industry Office, quoted Thursday (27/2/2025).

So far, said Agus, Apple has only built R&D facilities in the US and Brazil. Thus, Apple’s R&D in Indonesia will be the second in the world outside the US, as well as the first in Asia. Agus said the facility will be built in the BSD Tangerang Special Economic Zone (KEK), Banten,

“So far, Apple has only built R&D facilities in America, only one country outside America, namely Brazil. We will be the second country outside America and the first country in Asia to have Apple R&D,” he said.

The establishment and implementation of R&D will involve 15 universities in Indonesia, some of which are the Bandung Institute of Technology (ITB), University of Indonesia (UI), Gadjah Mada University (UGM), and others. Agus assessed that Apple sees Indonesia as an important country for their business so that they are willing to build R&D facilities. In addition, the quality of Indonesian human resources (HR) is ready to support the establishment of R&D facilities.

The Apple R&D Center Indonesia will later focus on HR development which includes software development in the fields of health, internet of things (IoT), and artificial intelligence. In the signed MoU, the iPhone 16 manufacturer stated that it agreed to build the Apple Software Innovation and Technology Institute to the Apple Professional Developer Academy. Apple will also establish the Professional Developer Academy and the sustainability of the Apple Academy.

Later in the Apple Professional Academy facility, experts, both Apple Academy graduates and non-graduates will be gathered to carry out technology development activities, and to improve skills for experts who want to add new skills. All of these plans are included in Apple’s new investment plan of US$ 160 million or IDR 2.6 trillion (exchange rate of IDR 16,360). The achievement of the negotiation agreement means that Apple’s TKDN certificate will be issued soon, which is one of the requirements for the iPhone 16 to be sold in Indonesia.

February 27, 2025, detikFinance(https://finance.detik.com/industri/d-7798753/pertama-di-asia-apple-bakal-bangun-fasilitas-riset-di-indonesia)

The Japanese government provides support to support the implementation of the free nutritious food (MBG) program and improve the quality of education, nutrition, and welfare of children in Biak City, Papua Province. This support is provided in collaboration with UNICEF Indonesia and the National Nutrition Agency.

In a statement obtained by CNBC Indonesia, Tuesday (25/2/2025), Japan provided funding support of $3.4 million (around IDR 55.437 billion) for 2 years. Then, UNICEF will assist provincial and district authorities in Papua to provide a cost-effective MBG program for PAUD and elementary school students using local food and integrated basic nutrition services.

In detail, this program will reach 2,500 preschool and elementary school children with improved nutrition and education services during this partnership. In addition, 150 teachers and principals will receive training in pedagogical skills and nutrition monitoring, including 2,500 parents who will gain knowledge about nutrition and care that supports child growth and development.

A total of 270 government officials, cooking teams, teachers, and principals will also benefit from the school meal capacity building initiative. The program will also conduct capacity building for 50 policy makers in planning and budgeting issues, to achieve tangible results that can support the sustainability of the MBG program.

In addition to MBG, the partnership will also provide professional development training to teachers to improve the quality and inclusiveness of teaching and learning in the classroom, especially in literacy, numeracy, and nutrition awareness. In addition, counseling will be carried out to involve parents in the care and development of their children.

“Japan wants to contribute to school meals in Indonesia by starting from the 100-year experience of the school meal program in Japan. Previously, Japan was also involved in a project to develop fishing ports, freezing facilities, and marketing on six remote islands; with the assistance of a JICA grant, the project launched in 2021 has succeeded in increasing the catch at the Biak Fishing Port,” said the Japanese Ambassador to Indonesia, Masaki Yasushi.

“School meals in Japan actively promote local products for local consumption, and we would like to promote collaboration between the two programs, so that the kitchen center for school meals can utilize fish from the Biak Fisheries Port, which is rich in nutrients including protein.”

Similarly, UNICEF Indonesia Representative, Maniza Zaman stated that nutritious food programs and supportive learning environments are key ingredients for healthy growth and the future success of every child.

“Every child has the right to develop fully, including access to quality social services,” she said.

“UNICEF is proud to partner with the Government of Japan to support Indonesia’s efforts to improve education and nutrition services for children in Papua.”

February 25, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/news/20250225132848-4-613453/jepang-bantu-program-mbg-prabowo-hibahkan-dana-segini)

Indonesia will participate in the World Expo 2025 Osaka. The event, attended by various countries around the world, will last for 6 months from April 13, 2025, to October 13, 2025. Indonesia is ready to present the charm of nature, culture, creativity and leading innovation. Carrying the theme “Thriving in Harmony: Nature, Culture, Future”, Indonesia confirms its commitment to sustainable development.

“This is the only expo in the world with a complete package, all here, tourism, trade, investment. Because people come to enjoy shopping and then investing. This is the driving force of the economy,” said the Director General of National Export Development, Fajarini Puntodewi, at the Kick Off Meeting of Indonesia’s Participation in the World Expo 2025 Osaka, Jakarta, Thursday (13/2/2025).

In its participation, Indonesia has prepared the Indonesian Pavilion with an area of ​​1,750 m², which combines tradition and modernity, inviting visitors to explore the diversity of the nation’s potential. Here, innovations and visions towards Indonesia Emas 2045 will be presented, becoming a source of inspiration in various fields and opening up opportunities for new business partnerships.

There are 8 programs of the Indonesian Pavilion: 1. Theme Weeks, Indonesian participants will fill various forms of activities according to 8 sub-themes that will be displayed at the Expo and Indonesian Pavilions; 2. National Day, held on April 25, 2025, at the Expo Hall/Event Hall 1. Carnival parade from the Expo Hall to the Indonesian Pavilion; 3. Best Practice, Team Expo Program, collaborating with various countries in displaying the best innovation works in achieving SDG’s; 4. Woman Pavilion, promoting gender equality initiatives, progress and empowerment of women globally; 5. Business Forum, a business forum attended by potential international partners in discussing issues and innovations regarding the achievement of SDGs; 6. 1on1 Meeting, an activity that provides opportunities for the government and private sector to explore cooperation agreements; 7. Cultural Performance, a cultural promotion event by presenting cultural arts performances on the stage area of ​​the Indonesian Pavilion; 8. Rolling Exhibition, displaying innovative products in achieving SDGs in the rolling exhibition area and Indonesia craft Indonesian Pavilion.

In addition, the Ministry of Trade will take advantage of the opportunity at the World Expo 2025 Osaka to increase export value. Indonesia’s participation in the World Expo 2020 Dubai was US$ 34.88 billion, consisting of investment with 19 business cooperation agreements and investment of US$ 32.7 billion and trade of US$ 2.18 billion.

“The trade target must be higher than the previous achievement. This is an opportunity that we must take advantage of,” said the Director General of National Export Development, Fajarini Puntodewi.

On the other hand, Japan is Indonesia’s main trading partner and currently occupies the fourth position as an export destination country. Punto believes that participation in the World Expo 2025 Osaka will further strengthen trade relations between the two countries. The trend of trade between Indonesia and Japan continues to show a positive increase of 10.27% annually in the last five years.

February 14, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250213142430-4-610406/world-expo-2025-osaka-ajang-ri-gaet-turis-investor-asing)

(https://www.cnbcindonesia.com/news/20250213122943-4-610345/world-expo-2025-osaka-peluang-besar-genjot-ekspor-indonesia)