Indonesia seen to cut rate twice this year amid US tariff talks
INDONESIA'S central bank is expected to resume monetary easing after holding its rate unchanged for three consecutive meetings, moving to bolster economic growth against the backdrop of rising tariffs and trade policy uncertainty.
Economists predicted a quarter-point reduction in Bank Indonesia's benchmark rate to 5.5% by the end of the second quarter, according to the latest Bloomberg survey. They see a further 25-basis point cut in the third quarter, which will lead the terminal rate to 5.25% toward the year-end.
Consumer inflation could also be more moderate than expected. The headline gauge is projected to be 1.8% for the second quarter, lower than the earlier forecast of 1.9%, which should pare down the full-year print to 2% from 2.1%.
The planned 32% US tariffs on Indonesian goods prompted economists to lower economic growth forecasts this year to 4.8% from 5% previously. 'Key downside risks to growth could stem from the implementation of the higher-band reciprocal tariff on Indonesia after the current 90-day pause', said Lloyd Chan, strategist at MUFG bank.
The Indonesian government is currently negotiating with Washington to avert the tariffs that are seen to hit the exports sector. In an early warning sign of the tariff fallout, a measure of Indonesian manufacturing activity fell to its lowest since 2021, with factories cutting production and jobs in April.
Indonesia has pledged to increase its energy and agriculture imports from the US, as well as increase cooperation for the supply of critical minerals in the trade talks. Still, the government underlined it will put forward national interests as the US pushes for Indonesia to deregulate investments and ease market access.
The Indonesian rupiah fell to an all-time low against the dollar last month, triggered by a selling spree in global financial assets as an impact of rising trade frictions around the globe. 'The rupiah, already near its lowest level since the Asian financial crisis, may come under additional pressure, and potentially require further intervention by Bank Indonesia,' said Ahmad Mobeen, senior economist at S&P Global Market Intelligence. –BLOOMBERG
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The Star
2 hours ago
- The Star
The billion-Baht casino empire: How Thai-Cambodia border tensions expose hidden networks of power
BANGKOK: Recent border tensions between Thailand and Cambodia have inadvertently exposed a sprawling network of influential figures who have built a multi-billion baht casino empire along the frontier, according to explosive new research from the Centre for Gambling Problem Studies. The territorial dispute, which erupted into clashes at Chong Bok in Ubon Ratchathani province and led to reduced border crossing hours from Saturday (June 7), has disrupted what investigators describe as a "massive profit network" hidden behind the Thai-Cambodia frontier. The Koh Kong Kingdom At the heart of this investigation lies the Koh Kong Resort casino, located just 800 metres from Thailand's permanent Khlong Yai border crossing in Trat province. The operation is owned by "Oknha Ly Yong Phat," known in Thailand as "Pad Suphapa" or "Sia Pad," a Cambodian senator and businessman of Chinese-Thai descent. Sia Pad controls tens of thousands of rai through his LYP Group, one of Cambodia's largest corporations under the Li So company umbrella. Beyond casinos and hotels, his business empire encompasses industrial estates, fruit centres, commercial buildings, private roads, and river bridges. Most significantly, the research identifies Sia Pad's connection to former Cambodian Prime Minister Hun Sen, described as his "elder brother" and political patron. This relationship reportedly began when Sia Pad supported Hun Sen's political campaigns in Koh Kong province, leading to electoral victory and Sia Pad's subsequent appointment to Cambodia's highest royal title of "Oknha." The Poipet Powerbrokers Cambodia now hosts approximately 150 casinos, making it Southeast Asia's gambling capital, with most concentrated along the Thai border. The largest hub is Poipet in Banteay Meanchey province, opposite Thailand's Aranyaprathet district in Sa Kaeo, where an estimated 80% of gamblers are Thai nationals. Key Poipet operations include Grand Diamond City, owned by Watthana Asavahem, a former 11-term MP from Samut Prakan known as the "Paknam Godfather." - Photo: The Nation/ANN He purchased the business in 2001 for approximately 700 million baht and attempted to sell it in 2021 for 12 billion baht. Watthana currently faces a 10-year prison sentence for land fraud. Holiday Poipet represents a joint venture between Indonesian, Macau Chinese, and Thai businessmen, whilst Star Vegas & Club involves oil tycoons partnering with Taiwanese investors and the brother of a former Cambodian defence minister. The Shadow Shareholding System The research reveals a sophisticated "nominee shareholding" system where influential Cambodians leverage land ownership to secure stakes in casino operations. Former Khmer Rouge leader Samphor, who became Pailin province's governor, exemplifies this pattern by opening his territory to Thai investors whilst demanding partnership stakes in multiple casinos including Pailin, Crown Diamond, Dream World, and K.R. Victoria casinos. These arrangements require casino operators to pay overlapping concession fees to both central and local governments, creating multiple layers of profit-sharing amongst political elites. Cross-Border Corruption Networks The investigation exposes systematic corruption involving officials on both sides of the border. Casino operators must pay bribes to facilitate border crossing schedules, passport processing, contraband inspections, and cross-border money transfers. Crucially, the casinos serve as money-laundering centres for Thai elite engaged in illegal businesses, with conspiracies between money launderers and casino owners who often become VIP clients. The research identifies "Kok An," a wealthy Cambodian businessman and Hun Sen adviser, who was involved in constructing the Princess Crown casino in Poipet. The project violated border agreements, prompting Thai protests and forcing construction to halt with excavated canal soil returned. Border Restrictions Hit Casino Profits The current border restrictions directly impact casino operations, particularly at the Aranyaprathet-Poipet crossing, now operating 08:00-16:00 with explicit prohibition: "Thai nationals travelling for gambling and tourism are forbidden to leave the country." These measures may represent attempts to control gambling and cross-border crime, but they also highlight the complex relationships between state power, business interests, and influence networks spanning both nations. The International Web The casino network involves multiple international players including "Tony," an Indonesian businessman owning Holiday Palace and Holiday Poipet; Chen Lip Keong, a Malaysian tycoon controlling Naga World through NagaCorp; Macau Chinese businessmen with stakes in multiple casinos; and Taiwanese investment groups in Star Vegas. Thai involvement includes "Sia Somboon," former Star Vegas and Star King owner, Cosmo Oil businessmen holding Star Vegas shares, and local Sa Kaeo entrepreneurs with stakes across multiple operations. Questions for the Future The current Thai-Cambodia dispute has inadvertently exposed what researchers describe as a "colossal profit network" generating billions of baht whilst connecting influential figures across both countries. As border tensions continue, the sustainability of these cross-border gambling empires faces unprecedented scrutiny. The key question remains: how long will the current dispute last, and what will be its ultimate impact on the multi-billion baht casino networks that have operated in the shadows of Thai-Cambodia relations for decades? - The Nation/ANN [* This investigation is based on research by the Centre for Gambling Problem Studies examining economic and political elite networks and the impact of border casinos along the Thai-Cambodia frontier.]
Malaysian Reserve
5 hours ago
- Malaysian Reserve
Pizza Hut Indonesia Partners with TUKR to Implement Sustainability Initiative on Food Production Waste Management
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TUKR is an Indonesian company in the renewable energy sector, particularly biofuel, and a leading company in Indonesia in collecting used cooking oil as one of the main raw materials for biofuel. Through this partnership, used cooking oil from 276 PHD outlets in Indonesia is collected and managed by TUKR to support global efforts in reducing carbon emissions and environmental pollution. Sr. Manager Corporate Social Responsibility, Nurdrajat Sumadyana, stated that Pizza Hut consistently applies sustainability principles. 'Within our 'Pizza Hut Peduli 8P' program, we apply sustainability principles through eight pillars, including 'Food Waste and Packaging Box Management' and 'Energy Saving and Renewable Energy Transition'. Our collaboration with TUKR aligns with and is a realization of our deepening commitment to these two pillars. Therefore, even though Pizza Hut's business activities are not directly related to environmentally impactful operations, the company remains committed to playing a role in environmental protection and conservation,' said Nurdrajat. Nurdrajat mentioned that since June 2024, Pizza Hut has implemented a used cooking oil collection program through its partnership with TUKR, an Indonesian company operating in the collection of UCO (used cooking oil). 'Waste oil from Pizza Hut's production and business processes is collected by TUKR to supply more environmentally friendly biofuel production, compared to fossil fuels. Over 70% of PHD outlets nationwide have participated, and going forward, all our business locations will join in collecting used cooking oil,' he said. This step, Nurdrajat continued, also aligns with the company's commitment to maintaining the quality of food and beverages served to consumers. 'For example, with cooking oil, we implement regular oil change procedures to maintain its clarity and quality. On the other hand, we ensure that the used cooking oil can still be utilized without harming the environment,' he added. Head of Brand & Partnership at TUKR, Adhi Putra Tawakal, said that the collaboration with Pizza Hut in used cooking oil processing aims to make a positive impact on the environment and society. 'We are grateful to be part of this sustainability initiative by Pizza Hut, and we hope more companies and individuals will share the same motivation and movement to make Indonesia and the world better and healthier,' he said. According to TUKR's report from June 6, 2024, to May 31, 2025, 200 PHD locations have participated in the used cooking oil collection program, with a total of more than 31 tons or 31,000 kg collected. Thus, Pizza Hut has helped prevent approximately 102,827 kg of carbon emissions[1], protected the cleanliness of up to 31 billion litres of clean water[2], and protected the health of more than 31,000 community members[3]. Adhi added, 'One of TUKR's missions is to popularize the collection of used cooking oil at the household level. With that mission, at the beginning of 2025, TUKR launched the 'MENYALA (Mengelola Minyak Jelantah/Managing Used Cooking Oil) with TUKR' program, where we engage individuals from companies, communities, or organizations to properly collect used cooking oil from their households. In the 'MENYALA with TUKR' program, each individual is provided with a 1-litre jerry can to safely store their used cooking oil before handing it over to TUKR to be processed into biofuel.' As proof of its commitment to sustainability, Pizza Hut Indonesia has also implemented 'MENYALA with TUKR' at its Restaurant Support Center or headquarters since June 2025, coinciding with World Environment Day on June 5, 2025. No fewer than 275 employees enthusiastically participated. At the initial collection on June 3, 2025, more than 170 liters of used cooking oil were successfully collected by Pizza Hut employees. This achievement reflects the awareness and support of Pizza Hut employees toward the company's environmental sustainability initiatives. The 'MENYALA with TUKR' program will continue at Pizza Hut as part of a long-term initiative. [1] Every 1 kg of biofuel produced from used cooking oil can reduce carbon emissions by up to 3,317 kg. [2] A study in the European Union shows that every 1 litre of oil can pollute up to 1 million litres of water. Oil that is not dissolved in water will create a thin film on the surface of the water that disrupts the circulation of oxygen needed by the water to maintain its purity. By collecting 31,000 kg of used cooking oil and preventing it from being discharged into the water, Pizza Hut and TUKR help maintain the purity of up to 31 billion litres of water. [3] The 2021 BPS SUSENAS survey showed that, on average, Indonesians consume 1 litre of cooking oil per person per month. By collecting 31,000 kg of used cooking oil and preventing its illegal circulation in the community as bulk oil that can be reused, Pizza Hut and TUKR help maintain the health of 31,000 members of the community, or even more. About Pizza HutPT Sarimelati Kencana Tbk, commonly known as Pizza Hut Indonesia, is a subsidiary of PT Sriboga Raturaya. Established in 1984, PT Sarimelati Kencana Tbk became the first pizza company in Indonesia. It was successfully listed on the Indonesia Stock Exchange in 2018. Named Favorite Halal Brand by LPPOM MUI in 2023, PT Sarimelati Kencana Tbk presents this iconic Italian dish through various brands, including Pizza Hut Indonesia, Pizza Hut Delivery (PHD), and Ristorante. Over the past four decades, PT Sarimelati Kencana Tbk has #SharedTogether, growing from a single outlet at Djakarta Theater in 1984 to more than 591 outlets across 36 provinces nationwide. PT Sarimelati Kencana Tbk is committed to growing with the community through the CSR program Pizza Hut Peduli 8P: Farmers & MSMEs, Women Empowerment, People with Disabilities, Red Cross & Orphanages, Energy Saving & Renewable Energy Transition, Food Waste & Packaging Management, Child Nutrition Improvement, and Employee Prioritization. About TUKRTUKR (pronounced: too-ker) is an Indonesian company operating in the renewable energy sector, particularly biofuel. Through a self-developed operational network, TUKR collects used cooking oil from various sources as a global-level raw material for biofuel production. In its efforts, TUKR collaborates with and provides solutions to food factories, restaurant chains, hotels, MSMEs, communities, and households in managing their used cooking oil waste wisely and properly, avoiding environmental pollution and serving as a source of low-emission energy. TUKR's operations and services span dozens of provinces, mainly in Western and Central Indonesia, and have been utilized by over 9,000 businesses, organizations, and communities. All TUKR business activities and collected used oil are ISCC (International Sustainability & Carbon Certification) certified. More information about TUKR is available on the official website:
The Star
6 hours ago
- The Star
Vietnam exports first African swine fever vaccine batch to Indonesia
Workers at AVAC Vietnam preparing a shipment of African swine fever vaccine for export to Indonesia. — Courtesy of AVAC HANOI: Biotechnology firm AVAC Vietnam Joint Stock Company has exported its first shipment of African swine fever (ASF) vaccines to Indonesia, a major milestone in the country's efforts to bring domestically developed veterinary vaccines to the international market. The shipment, consisting of 120,000 doses of the AVAC ASF LIVE vaccine, was sent to Indonesia on Monday following nearly three years of evaluation and testing in collaboration with Indonesian authorities. The vaccine was officially approved for use by Indonesia's Ministry of Agriculture in April this year. The importer and distributor is PT. Biotis Prima Agrisindo, based in West Java. According to Nguyen Van Diep, General Director of AVAC Vietnam, the export underscores the vaccine's quality and efficacy, having passed Indonesia's stringent veterinary approval process. He said the milestone reflected not only the company's success but also the progress of Vietnam's veterinary vaccine sector in establishing a presence on the global stage. The live attenuated vaccine is the first of its kind in the world to have been successfully developed and commercialised, a result of intensive research by AVAC. The product has so far been used to administer over 3.5 million doses, with around three million doses deployed across Vietnam to help contain ASF outbreaks in various localities. Nearly 500,000 doses have already been exported to the Philippines and Nigeria, both of which have responded positively to the vaccine. AVAC currently maintains a reserve of approximately 1.5 million doses to meet urgent domestic and international demand. The company is also pursuing regulatory approval in several other countries, including India, Malaysia, Nepal and Myanmar. In Vietnam, the vaccine has been rolled out on a large scale in provinces such as Cao Bang, Lang Son, Bac Ninh, Hai Duong, Hai Phong, Quang Ninh, Quang Ngai and Tra Vinh, with the support of local funding. Field results have shown the vaccine to be highly effective and safe, with no recurrence of ASF in vaccinated herds. Veterinary authorities are continuing to assess the vaccine's use in breeding pigs, including both sows and boars, to extend protection across the entire pig population. Initial trials have indicated good safety and efficacy, though full evaluation is still underway. Le Toan Thang, head of Veterinary Medicine Management Division at the Department of Livestock Production and Animal Health, said the successful export to Indonesia further demonstrated the effectiveness of Vietnamese-made vaccines. He said that Vietnam's ability to control ASF domestically helped build trust in the product and opened the door for more exports. All exported veterinary vaccines must undergo rigorous testing, independent trials and safety assessments in the importing country before they are approved for use. AVAC's product has successfully met these standards. AVAC is one of three domestic manufacturers currently licensed to produce ASF vaccines in Vietnam, alongside Navetco Central Veterinary Medicine JSC and Dabaco Group. — Vietnam News/ANN
