Global bond market turmoil shakes Indonesia, risking Prabowo's spending plans
JAKARTA -- U.S. tariffs and global market turmoil could derail Indonesian President Prabowo Subianto's expansive spending plans. While experts see Indonesia's fiscal position as stable, global pressures could find the government forced to trim spending or issue debt.
The U.S.-China trade truce last week also offers a breather and the Indonesian government has talked up the chances of reaching its own deal. But uncertainties linger, with global bond markets bruised by U.S. President Donald Trump's inflationary trade policies.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Today
2 hours ago
- Japan Today
Japan, EU eye launch of 'competitive alliance' scheme to boost trade
Japan and the European Union are preparing to launch an "alliance" framework to beef up their companies' competitiveness by promoting trade and economic security cooperation, diplomatic sources said Saturday, facing concerns over U.S. President Donald Trump's tariffs and Chinese trade practices. The creation of the "Japan-EU Competitiveness Alliance" is expected to be announced at a regular summit meeting being arranged for July, when Japanese Prime Minister Shigeru Ishiba is likely to host European Council President Antonio Costa and European Commission President Ursula von der Leyen, they said. The move will further align both sides' efforts to uphold a rules-based economic order, building on cooperation through a free trade agreement that removes tariffs and other trade barriers between the two economies, which account for 20 percent of the world's gross domestic product. Under the framework, Japan and the EU will work together to diversify supply chains for rare earth minerals in the face of China's export restrictions on the elements crucial for the production of smartphones and other high-tech products, according to the sources. They will also align subsidy conditions for environmental technology such as electric vehicle and hydrogen production to promote fair competition for manufacturers and reduce development costs. On the trade front, the two sides will seek to promote reform of the World Trade Organization that is deemed dysfunctional, with the United States dissatisfied with the global body's response to addressing Chinese trade practices and other issues. They will also seek to collaborate with the "Global South" emerging and developing economies as partners sharing values of free and fair trade as well as the rule of law, the sources said. The EU is also eager to cooperate with a vast trans-Pacific free trade agreement involving Japan and 10 other nations, plus Britain that joined the accord in 2023. Some inside the bloc have called for joining efforts in rulemaking, as members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership weigh better business environment for digital trade and climate change countermeasures. © KYODO
Nikkei Asia
4 hours ago
- Nikkei Asia
Trump warns of 'serious consequences' if Musks funds Democrats
BEDMINSTER, New Jersey (Reuters) -- Donald Trump said on Saturday his relationship with his billionaire donor Elon Musk is over and warned there would be "serious consequences" if Musk funds U.S. Democrats running against Republicans who vote for the president's sweeping tax and spending bill. In a telephone interview with NBC News, Trump declined to say what those consequences would be, and went on to add that he had not had discussions about whether to investigate Musk.
Kyodo News
7 hours ago
- Kyodo News
Japan, EU eye launch of "competitive alliance" scheme to boost trade
KYODO NEWS - 3 hours ago - 21:04 | Japan, All, World Japan and the European Union are preparing to launch an "alliance" framework to beef up their companies' competitiveness by promoting trade and economic security cooperation, diplomatic sources said Saturday, facing concerns over U.S. President Donald Trump's tariffs and Chinese trade practices. The creation of the "Japan-EU Competitiveness Alliance" is expected to be announced at a regular summit meeting being arranged for July, when Japanese Prime Minister Shigeru Ishiba is likely to host European Council President Antonio Costa and European Commission President Ursula von der Leyen, they said. The move will further align both sides' efforts to uphold a rules-based economic order, building on cooperation through a free trade agreement that removes tariffs and other trade barriers between the two economies, which account for 20 percent of the world's gross domestic product. Under the framework, Japan and the EU will work together to diversify supply chains for rare earth minerals in the face of China's export restrictions on the elements crucial for the production of smartphones and other high-tech products, according to the sources. They will also align subsidy conditions for environmental technology such as electric vehicle and hydrogen production to promote fair competition for manufacturers and reduce development costs. On the trade front, the two sides will seek to promote reform of the World Trade Organization that is deemed dysfunctional, with the United States dissatisfied with the global body's response to addressing Chinese trade practices and other issues. They will also seek to collaborate with the "Global South" emerging and developing economies as partners sharing values of free and fair trade as well as the rule of law, the sources said. The EU is also eager to cooperate with a vast trans-Pacific free trade agreement involving Japan and 10 other nations, plus Britain that joined the accord in 2023. Some inside the bloc have called for joining efforts in rulemaking, as members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership weigh better business environment for digital trade and climate change countermeasures.
