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Indonesia plans to start building US$80-billion giant sea wall

Indonesia plans to start building US$80-billion giant sea wall

[JAKARTA] Indonesia will begin the construction of a giant sea wall that will stretch hundreds of kilometres along the nation's main Java island to prevent flooding and coastal erosion, President Prabowo Subianto said.
The sea wall is estimated to cost US$80 billion and take about 20 years to build, Prabowo said in a speech to investors at the International Conference on Infrastructure in Jakarta on Thursday (Jun 12). It will span at least 500 kilometres from the island's westernmost city of Banten to the Gresik regency in East Java.
'I do not know which president will complete it, but I will be the one who starts it,' said Prabowo.
Flood control is one of the nation's strategic priorities, along with providing livable and resilient cities, with more than 70% of Indonesians expected to live in urban areas by 2045, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono said in the same conference.
Java, the nation's economic and political centre, is home to 158 million people, more than half of Indonesia's 284 million population.
While the sea wall is intended to protect cities from floods and land subsidence, some experts have flagged concerns about the potential economic harm for fishermen and local communities who rely on the sea, as well as the disruption to the marine ecosystem.
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The scale and the cost also raise questions about how Indonesia can execute the mega-project, especially as Prabowo intends to pursue other costly initiatives during his presidency. The government is currently rolling out a multi-billion dollar programme to provide free meals to students. It also wants to build three million affordable homes yearly, while renovating schools across the country.
Prabowo said he would soon establish an authority to oversee the giant sea wall project, which has been part of the Indonesia's national blueprint since 1995 yet has never been carried out. Plans for a smaller sea wall along the coast of Jakarta have also been discussed for over a decade, with the capital being one of the fastest-sinking cities in the world.
The Jakarta segment alone of the sea wall would take about eight years to complete, the president said, adding that this would be funded jointly by the central and local governments. A senior minister revived the plan to build the Jakarta sea wall last year, at an estimated cost of US$10.5 billion.
To extend the sea wall along Java, 'we are open to investment from companies in China, Japan, Korea, the Middle East,' Prabowo said. 'Those who want to join are welcome, but we will not wait. We will use our own strength.' BLOOMBERG

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Indonesia aims to seal EU free trade agreement in 2026
Indonesia aims to seal EU free trade agreement in 2026

Business Times

timean hour ago

  • Business Times

Indonesia aims to seal EU free trade agreement in 2026

[JAKARTA] Indonesia aims to seal a free trade agreement with the European Union in 2026, Indonesian trade ministry official Djatmiko Bris Witjaksono said on Friday (Jun 13), after the two sides completed their latest round of negotiations. Indonesia and the EU have been in discussions on the agreement for about nine years, and are aiming to sign and ratify it by next year, Djatmiko told reporters, adding it could come into effect by late 2026 or early 2027. The EU has committed to provide market access to priority Indonesian products such as palm oil, textiles, footwear and seafood, Djatmiko said. Indonesia and the EU have previously clashed on tougher EU trade rules for products with potential links to deforestation, which could have an impact on shipments of Indonesian palm oil. In turn, Indonesia has also pledged to increase market access for agricultural and manufactured goods from the EU, Djatmiko said. EU ambassador to Indonesia Denis Chaibi said negotiations are ongoing and 'substance will determine timing.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The main benefits of the free trade deal for Indonesia include increased foreign direct investment from the EU in sectors like renewables, semiconductors, and mineral derivatives, a presentation slide presented by Djatmiko showed. The deal could increase exports by 5.4 per cent, according to an internal benefit analysis, but senior economic minister Airlangga Hartarto said this was a conservative estimate and he targets a 50 per cent increase in three years. In 2024, the EU invested US$1.1 billion in Indonesia, a drop of more than 50 per cent from the previous year. Indonesia's exports to the EU last year were worth US$17.3 billion, while imports from the EU were worth US$12.8 billion, Indonesian government data showed. REUTERS

Indonesia's multi-nation fighter jet fleet may expand with China's cheaper J-10s, but what price might it pay?
Indonesia's multi-nation fighter jet fleet may expand with China's cheaper J-10s, but what price might it pay?

CNA

time4 hours ago

  • CNA

Indonesia's multi-nation fighter jet fleet may expand with China's cheaper J-10s, but what price might it pay?

JAKARTA: Indonesia could become the only country outside China and Pakistan to operate the Chinese J-10 fighter jets if it takes up a sales offer from Beijing, but analysts say it's a decision that the Southeast Asian nation should weigh carefully. They add that the deal could jeopardise Indonesia's neutrality and credibility over the South China Sea issue, trigger an arms race in the region, and risk its airforce's operational readiness, with one observer warning that it could serve China's long-term strategic goals more than Indonesia's own interests. Earlier this month, media reports confirmed that China offered to sell its J-10 fighter jets to Jakarta, citing remarks from Deputy Defence Minister Donny Ermawan Taufanto. Interests in purchasing the Chinese planes intensified after reports that a J-10 flown by Pakistan shot down multiple jets operated by India last month, including newly-acquired French-made Rafale fighter jets. On May 30, Indonesian Defence Minister Sjafrie Sjamsoeddin announced that Jakarta would be sending several military pilots to China 'for a J-10 fighter jet training' and visiting its production facility in Chengdu. The price may be J-10s' biggest selling point for Indonesia, particularly as the country is imposing a number of austerity measures to finance President Prabowo Subianto's ambitious programmes of providing free meals and affordable housing to millions of Indonesians. But the downsides may outweigh the benefits, analysts said, arguing that a closer military alignment with China is bound to provoke mixed reactions at home and abroad. 'Indonesia really needs to tread carefully and base its decision not just on short-term gains but how the decision might affect our long-term security interests,' Khairul Fahmi of the think-tank Institute for Security and Strategic Studies (ISESS) told CNA. China has reportedly been persuading Southeast Asia's biggest economy to buy the jets numerous times. The latest was when the Indonesian Air Force chief of staff, Air Marshal Mohamad Tonny Harjono and other high-ranking officials visited the China International Aviation & Aerospace Exhibition in Zhuhai last November. 'At the airshow, (the Indonesian officials) saw the (J-10) planes and they were offered to buy them,' Donny, himself a retired air marshal, told reporters on Jun 4, as quoted by CNN Indonesia. 'This is a good plane, it meets the criteria we set and the price is cheap. So why not?' But striking such a deal with Beijing could affect Indonesia's ties with existing military partners as the majority of them view China as a threat to their security and stability, said experts. Beijing's encroachment of Indonesia's exclusive economic zone in the South China Sea has fuelled anti-China sentiments back home. Jakarta has been looking to modernise its ageing military hardware in recent years as well as diversify its defence suppliers. In 2022, Indonesia purchased 42 Rafale jets for US$8.1 billion. The first six of these French jets are slated for delivery next year. Costing up to US$120 million for its most basic model, the Rafale is one of the most expensive fighter jets in the world. Meanwhile, the J-10, which like the Rafale is considered a 4.5-generation aircraft, is said to be priced at around US$40 million each. Both may cost more with optional extras such as training or infrastructure packages. Fighter jet generations are classed according to their capabilities, performance and year of development. Currently, fifth-generation fighters are the most technologically advanced jets. Indonesia currently has a total of 110 fighter planes made in various countries including the United States's F-16, Russia's Su-27 and Su-30, Brazil's EMB-314 Super Tucano and the United Kingdom's BAE Hawk 200. 'Indonesia has been seeking to diversify its fleet to reduce dependence on a particular country or bloc,' Beni Sukadis of the Jakarta-based think-tank, the Indonesian Institute for Defence and Strategic Studies (Lesperssi), told CNA. It is also said to have inked a deal with Turkey to procure 48 KAAN fighter jets, developed by the Turkish Aerospace Industries (TAI), Turkish President Recep Tayyip Erdoğan said in an X post on Wednesday (Jun 11). The deal is reportedly valued at more than US$10 billion and will span over the course of 10 years. It also includes the co-production of some KAAN jet components in Indonesia. Launched last year, the KAAN is considered a fifth-generation fighter jet. DRAWBACKS AND POTENTIAL BACKLASH So far, Indonesia has remained tight-lipped about its interests in the J-10, including whether it is eyeing brand new J-10Cs or a few of the J-10As which China's People's Liberation Army Air Force is looking to retire. The J-10 has three main models: J10A, B and C with the J-10A being the oldest and most basic and the J-10C being the latest and most advanced. All models have the same maximum speed of Mach 1.8 and a range of 1,850km. The latest model however has more advanced radars, better stealth capabilities and other improvements. The jets involved in the Pakistan-India standoff were the export variant of the J-10C. Mach is used as a unit of measurement in stating the speed of a moving object in relation to the speed of sound. For some experts, the secrecy hinted that Indonesia is still unsure about the J-10's capabilities and took the Chinese jets' recent dogfight success with a grain of salt. 'There are many factors behind a dogfight victory: Technologies, battle strategies, pilot's abilities. So it is not just about what jet was used,' Khairul said. 'Indonesia never buys military equipment impulsively.' Experts say how well and how soon Indonesian pilots and ground crew familiarise themselves with Chinese-made military equipment could be a deal-breaker. 'France and the United States are NATO countries. Their military equipment follows NATO standards and more importantly, they are inter-operable,' Beni said. Inter-operability refers to how well equipment manufactured by different countries or companies communicate and work with each other, a crucial feature in areas such as healthcare, public safety and defence. 'Inter-operability also means that a pilot or a technician who is familiar with American jets will not have a hard time familiarising himself with one made by France or the United Kingdom,' Beni continued. 'Buying the J-10 means we will have to send pilots and technicians for training, spare parts will have to come from China and the J-10 might not work well with our radar or communication system which were made by NATO countries.' Security is another thing to consider, particularly as some countries are suspicious of Chinese technologies, believing that they might be designed to allow Beijing to launch cyberattacks or gather intelligence. '(Indonesia) may have close economic ties with China but we don't yet have a strong military relationship with China,' Teuku Rezasyah, an international relations expert from Padjadjaran University, told CNA. 'How well can we trust that China will not use this advanced technology to spy on us?' the expert asked. 'Can we trust the J-10 if we have to send one to the Natunas for example?' Teuku was referring to a chain of islands in Indonesia's Riau Islands province which borders the South China Sea. Beijing is laying claim to most of the South China Sea, prompting disputes and clashes with several Southeast Asian countries. Although Indonesia is not a claimant party in the dispute, China's 'nine-dash line' cuts into Indonesia's exclusive economic zones. REGIONAL STABILITY AT RISK For more than a decade, Indonesia has been championing ASEAN to formulate a code of conduct in the South China Sea. However, apparent divergence between countries with close military ties to China, such as Cambodia and Laos, and those without, such as Vietnam and the Philippines, has made reaching a consensus nearly impossible. 'Indonesia establishing close military ties with China would put into question Indonesia's neutrality and credibility in the South China Sea issue or other disputes involving China,' Teuku said. The international expert also cautioned the possibility of an arms race in the region. Since Indonesia purchased the 4.5-generation Rafale jets, Thailand has announced plans to buy 12 JAS-39E Gripens from Sweden's Saab over the next 10 years while the Philippines has signed a contract to purchase 12 FA-50 Golden Eagles from Korea Aerospace Industries. Like the Rafales, the Gripens is a 4.5-generation fighter jet while the FA-50 is a fourth-generation aircraft which puts it on par with the US F-16. Indonesia is also negotiating the purchase of 24 of the 4.5-generation F-15EX from the US. Its reported agreement with Turkey to purchase KAAN fifth-generation planes would make it the second country in ASEAN to have such advanced fighter jets. Singapore last year announced plans to acquire eight F-35A fighter aircraft, complementing the previously announced purchase of 12 F-35Bs. The US is limiting the sales of the F-35 to a few select countries while restricting the sales of the F-22 outside of the US. Indonesia, Thailand and Malaysia have had their request to buy the F-35 rejected on several occasions. Purchasing the J-10, experts say, might one day open the possibility for China to sell its fifth-generation fighters to Indonesia. China currently has two fifth-generation fighter jets: the Chengdu J-20 and the Shenyang J-35. SWEETENING THE DEAL With its comparatively cheap price, the J-10 should in theory be a hit to countries seeking affordable alternatives to Western or Russian jets. But despite being around since 2003, the J-10 is only operated in two countries: China and Pakistan, with the latter receiving their first batch in 2022. Experts say other countries may have their own security and diplomatic concerns. Even after the J-10s reported success in the Pakistan-India standoff, only a handful of countries like Egypt and Colombia are expressing interest in purchasing the Chinese jets. Indonesia – the world's fourth-most populous nation with strong diplomatic clout among developing countries across the globe – buying the J-10 could change all that, say experts. 'Just like China's profile in the transportation industry was lifted by the Jakarta-Bandung high-speed rail project, Indonesia purchasing the Chinese J-10 would immediately boost China's profile as a global defence manufacturer,' Teuku, the international relations expert said. In 2023, Indonesia launched Southeast Asia's first high-speed railway, Whoosh, a joint venture between Indonesian and Chinese firms which was financed mainly by loans from the China Development Bank. Following Whoosh's success, several countries including Vietnam and Pakistan have announced interest in adopting Chinese technologies for their high-speed rail ambitions. To woo Indonesia, experts said China could sweeten the deal by agreeing to buy more Indonesian goods, an enticing proposition amid the threat of a tariff war initiated by US President Donald Trump. China might also offer joint manufacturing or assembly of the J-10, as it did with Pakistan, or promise more investment in other sectors. 'Prabowo realises that Indonesia needs Chinese investment which may ultimately compel him to go ahead with the purchase,' defence expert Beni said. The expert highlighted that during his campaign run last year, Prabowo promised to create 19 million jobs and grow the country's economy by eight per cent annually during his first term. In 2024, Chinese investment in Indonesia reached US$8.1 billion. China injected another US$1.8 billion into the country in the first quarter of 2025. Experts said the final decision will depend on what China has to offer and how much Jakarta is willing to risk in return. 'Only time will tell.'

As Indonesia mulls buying China's J-10 fighter jets, what factors weigh on its mind?
As Indonesia mulls buying China's J-10 fighter jets, what factors weigh on its mind?

CNA

time5 hours ago

  • CNA

As Indonesia mulls buying China's J-10 fighter jets, what factors weigh on its mind?

JAKARTA: Indonesia could become the only country outside China and Pakistan to operate the Chinese J-10 fighter jets if it takes up a sales offer from Beijing, but analysts say it's a decision that the Southeast Asian nation should weigh carefully. They add that the deal could jeopardise Indonesia's neutrality and credibility over the South China Sea issue, trigger an arms race in the region, and risk its airforce's operational readiness, with one observer warning that it could serve China's long-term strategic goals more than Indonesia's own interests. Earlier this month, media reports confirmed that China offered to sell its J-10 fighter jets to Jakarta, citing remarks from Deputy Defence Minister Donny Ermawan Taufanto. Interests in purchasing the Chinese planes intensified after reports that a J-10 flown by Pakistan shot down multiple jets operated by India last month, including newly-acquired French-made Rafale fighter jets. On May 30, Indonesian Defence Minister Sjafrie Sjamsoeddin announced that Jakarta would be sending several military pilots to China 'for a J-10 fighter jet training' and visiting its production facility in Chengdu. The price may be J-10s biggest selling point for Indonesia, particularly as the country is imposing a number of austerity measures to finance President Prabowo Subianto's ambitious programmes of providing free meals and affordable housing to millions of Indonesians. But the downsides may outweigh the benefits, analysts said, arguing that a closer military alignment with China is bound to provoke mixed reactions at home and abroad. 'Indonesia really needs to tread carefully and base its decision not just on short-term gains but how the decision might affect our long-term security interests,' Khairul Fahmi of the think-tank Institute for Security and Strategic Studies (ISESS) told CNA. China has reportedly been persuading Southeast Asia's biggest economy to buy the jets numerous times. The latest was when the Indonesian Air Force chief of staff, Air Marshal Mohamad Tonny Harjono and other high-ranking officials visited the China International Aviation & Aerospace Exhibition in Zhuhai last November. 'At the airshow, (the Indonesian officials) saw the (J-10) planes and they were offered to buy them,' Donny, himself a retired air marshal, told reporters on Jun 4, as quoted by CNN Indonesia. 'This is a good plane, it meets the criteria we set and the price is cheap. So why not?' But striking such a deal with Beijing could affect Indonesia's ties with existing military partners as the majority of them view China as a threat to their security and stability, said experts. Beijing's encroachment of Indonesia's exclusive economic zone in the South China Sea has fuelled anti-China sentiments back home. Jakarta has been looking to modernise its ageing military hardware in recent years as well as diversify its defence suppliers. In 2022, Indonesia purchased 42 Rafale jets for US$8.1 billion. The first six of these French jets are slated for delivery next year. Costing up to US$120 million for its most basic model, the Rafale is one of the most expensive fighter jets in the world. Meanwhile, the J-10, which like the Rafale is considered a 4.5-generation aircraft, is said to be priced at around US$40 million each. Both may cost more with optional extras such as training or infrastructure packages. Fighter jet generations are classed according to their capabilities, performance and year of development. Currently, fifth-generation fighters are the most technologically advanced jets. Indonesia currently has a total of 110 fighter planes made in various countries including the United States's F-16, Russia's Su-27 and Su-30, Brazil's EMB-314 Super Tucano and the United Kingdom's BAE Hawk 200. 'Indonesia has been seeking to diversify its fleet to reduce dependence on a particular country or bloc,' Beni Sukadis of the Jakarta-based think-tank, the Indonesian Institute for Defence and Strategic Studies (Lesperssi), told CNA. It is also said to have inked a deal with Turkey to procure 48 KAAN fighter jets, developed by the Turkish Aerospace Industries (TAI), Turkish President Recep Tayyip Erdoğan said in an X post on Wednesday (Jun 11). The deal is reportedly valued at more than US$10 billion and will span over the course of 10 years. It also includes the co-production of some KAAN jet components in Indonesia. Launched last year, the KAAN is considered a fifth-generation fighter jet. DRAWBACKS AND POTENTIAL BACKLASH So far, Indonesia has remained tight-lipped about its interests in the J-10, including whether it is eyeing brand new J-10Cs or a few of the J-10As which China's People's Liberation Army Air Force is looking to retire. The J-10 has three main models: J10A, B and C with the J-10A being the oldest and most basic and the J-10C being the latest and most advanced. All models have the same maximum speed of Mach 1.8 and a range of 1,850km. The latest model however has more advanced radars, better stealth capabilities and other improvements. The jets involved in the Pakistan-India standoff were the export variant of the J-10C. Mach is used as a unit of measurement in stating the speed of a moving object in relation to the speed of sound. For some experts, the secrecy hinted that Indonesia is still unsure about the J-10's capabilities and took the Chinese jets' recent dogfight success with a grain of salt. 'There are many factors behind a dogfight victory: Technologies, battle strategies, pilot's abilities. So it is not just about what jet was used,' Khairul said. 'Indonesia never buys military equipment impulsively.' Experts say how well and how soon Indonesian pilots and ground crew familiarise themselves with Chinese-made military equipment could be a deal-breaker. 'France and the United States are NATO countries. Their military equipment follows NATO standards and more importantly, they are inter-operable,' Beni said. Inter-operability refers to how well equipment manufactured by different countries or companies communicate and work with each other, a crucial feature in areas such as healthcare, public safety and defence. 'Inter-operability also means that a pilot or a technician who is familiar with American jets will not have a hard time familiarising himself with one made by France or the United Kingdom,' Beni continued. 'Buying the J-10 means we will have to send pilots and technicians for training, spare parts will have to come from China and the J-10 might not work well with our radar or communication system which were made by NATO countries.' Security is another thing to consider, particularly as some countries are suspicious of Chinese technologies, believing that they might be designed to allow Beijing to launch cyberattacks or gather intelligence. '(Indonesia) may have close economic ties with China but we don't yet have a strong military relationship with China,' Teuku Rezasyah, an international relations expert from Padjadjaran University, told CNA. 'How well can we trust that China will not use this advanced technology to spy on us?' the expert asked. 'Can we trust the J-10 if we have to send one to the Natunas for example?' Teuku was referring to a chain of islands in Indonesia's Riau Islands province which borders the South China Sea. Beijing is laying claim to most of the South China Sea, prompting disputes and clashes with several Southeast Asian countries. Although Indonesia is not a claimant party in the dispute, China's 'nine-dash line' cuts into Indonesia's exclusive economic zones. REGIONAL STABILITY AT RISK For more than a decade, Indonesia has been championing ASEAN to formulate a code of conduct in the South China Sea. However, apparent divergence between countries with close military ties to China, such as Cambodia and Laos, and those without, such as Vietnam and the Philippines, has made reaching a consensus nearly impossible. 'Indonesia establishing close military ties with China would put into question Indonesia's neutrality and credibility in the South China Sea issue or other disputes involving China,' Teuku said. The international expert also cautioned the possibility of an arms race in the region. Since Indonesia purchased the 4.5-generation Rafale jets, Thailand has announced plans to buy 12 JAS-39E Gripens from Sweden's Saab over the next 10 years while the Philippines has signed a contract to purchase 12 FA-50 Golden Eagles from Korea Aerospace Industries. Like the Rafales, the Gripens is a 4.5-generation fighter jet while the FA-50 is a fourth-generation aircraft which puts it on par with the US F-16. Indonesia is also negotiating the purchase of 24 of the 4.5-generation F-15EX from the US. Its reported agreement with Turkey to purchase KAAN fifth-generation planes would make it the second country in ASEAN to have such advanced fighter jets. Singapore last year announced plans to acquire eight F-35A fighter aircraft, complementing the previously announced purchase of 12 F-35Bs. The US is limiting the sales of the F-35 to a few select countries while restricting the sales of the F-22 outside of the US. Indonesia, Thailand and Malaysia have had their request to buy the F-35 rejected on several occasions. Purchasing the J-10, experts say, might one day open the possibility for China to sell its fifth-generation fighters to Indonesia. China currently has two fifth-generation fighter jets: the Chengdu J-20 and the Shenyang J-35. SWEETENING THE DEAL With its comparatively cheap price, the J-10 should in theory be a hit to countries seeking affordable alternatives to Western or Russian jets. But despite being around since 2003, the J-10 is only operated in two countries: China and Pakistan, with the latter receiving their first batch in 2022. Experts say other countries may have their own security and diplomatic concerns. Even after the J-10s reported success in the Pakistan-India standoff, only a handful of countries like Egypt and Colombia are expressing interest in purchasing the Chinese jets. Indonesia – the world's fourth-most populous nation with strong diplomatic clout among developing countries across the globe – buying the J-10 could change all that, say experts. 'Just like China's profile in the transportation industry was lifted by the Jakarta-Bandung high-speed rail project, Indonesia purchasing the Chinese J-10 would immediately boost China's profile as a global defence manufacturer,' Teuku, the international relations expert said. In 2023, Indonesia launched Southeast Asia's first high-speed railway, Whoosh, a joint venture between Indonesian and Chinese firms which was financed mainly by loans from the China Development Bank. Following Whoosh's success, several countries including Vietnam and Pakistan have announced interest in adopting Chinese technologies for their high-speed rail ambitions. To woo Indonesia, experts said China could sweeten the deal by agreeing to buy more Indonesian goods, an enticing proposition amid the threat of a tariff war initiated by US President Donald Trump. China might also offer joint manufacturing or assembly of the J-10, as it did with Pakistan, or promise more investment in other sectors. 'Prabowo realises that Indonesia needs Chinese investment which may ultimately compel him to go ahead with the purchase,' defence expert Beni said. The expert highlighted that during his campaign run last year, Prabowo promised to create 19 million jobs and grow the country's economy by eight per cent annually during his first term. Chinese investments were also instrumental in Indonesia's ambition to become a key player in the electric vehicle battery industry. In 2024, Chinese investment in Indonesia reached US$8.1 billion. China injected another US$1.8 billion into the country in the first quarter of 2025. Experts said the final decision will depend on what China has to offer and how much Jakarta is willing to risk in return. 'Indonesia may ultimately buy a limited number of J-10s as a symbolic gesture of goodwill or it may politely decline and go with existing procurement paths,' Khairul of ISESS said. 'Only time will tell.'

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