Indonesia says its poverty rate the lowest in two decades
According to the Central Statistics Agency, there were roughly 23.85 million Indonesians living in poverty as of March this year - representing 8.47 per cent of the country's total population of 280 million.
BPS categorises people living off IDR609,160 a month, about US$37, as poor.
"The poverty line figure for 2025 is the lowest for the past two decades," the agency's senior official, Ateng Hartono, told a press conference.
However, the agency noted the significant gap between big cities and rural areas, with villages still seeing a higher poverty rate.
Jakarta last week struck a trade deal with the United States that will see Indonesian goods hit with a 19 per cent tariff - lower than the threatened rate of 32 per cent.
According to Washington, nearly all US goods will be able to enter Indonesia tariff-free.
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CNA
13 hours ago
- CNA
Ctrl-Alt-Pivot? Why China's tech titans are powering up in Southeast Asia
SHANGHAI: At Singapore's Jewel Changi Airport, a smiling digital concierge powered by Tencent Cloud greets travellers, offering directions, dining tips and real-time shopping recommendations in five languages. Once the realm of science fiction, such smart services are increasingly becoming everyday realities across Southeast Asia - and China is positioning itself at the heart of this digital transformation. From cloud deployments in Jakarta to artificial intelligence (AI) models tailored for Thai users, China's tech titans - Alibaba, ByteDance, SenseTime, Tencent and others - are expanding their regional footprint with new scale and sophistication. Heightened US-China tensions, tighter export controls and volatile Western markets have spurred Chinese firms to look beyond the West. Analysts say Southeast Asia has emerged as a key focus, a view echoed by Chinese tech executives in interviews with CNA. 'It's very clear to me that the investment is real. The market opportunity they are envisioning is real,' Ray Wang, research director for semiconductors, supply chain and emerging tech at advisory firm The Futurum Group, told CNA. But rather than a short-term pivot, observers say the shift is the result of a long-cultivated strategy - a multi-billion-dollar digital courtship aimed at turning Southeast Asia into a cornerstone of China's next global tech chapter. TECH, TIE-UPS AND TRANSFORMATION While an overall headline figure is hard to pin down, Chinese tech firms have been pouring billions of dollars into the region. In February, TikTok - the ByteDance-owned social media platform facing a potential ban in the United States - pledged US$8.8 billion over the next five years to build data centres and digital infrastructure in Thailand. Alibaba Cloud is also scaling up, announcing in July its third data centre in Malaysia, with another due to open in the Philippines this October. This development is part of Alibaba's 380 billion yuan (US$53 billion) investment plan in AI and cloud infrastructure over the next three years, a sum the company has said exceeds its total spending in this area over the past decade. The launch of its AI Global Competency Center in Singapore last month further underscores its regional ambitions, with the facility aiming to support AI adoption for more than 5,000 companies and 100,000 developers worldwide. SenseTime has also deepened its engagement in Southeast Asia. Best known for its AI and computer vision software, the firm signed an agreement with the Indonesian government at the recent World AI Conference in Shanghai. The agreement centres on jointly developing homegrown AI models, smart city technologies and nurturing local AI talent. It builds on SenseTime's existing footprint in smart city and green technology solutions in Singapore and Malaysia. All these moves are backed by massive national-level investment. Chinese AI capital expenditure is on track to reach US$98 billion this year, up 48 per cent from the previous year, according to a report by Bank of America, driving home Beijing's ambition to lead globally in AI, cloud computing and smart infrastructure. On the ground, Chinese technologies are increasingly embedded in everyday life and business operations across Southeast Asia. In June, GoTo Group and Alibaba Cloud announced the successful migration of GoTo Financial's infrastructure to Alibaba Cloud's data centres in Jakarta. In the Philippines, media organisation ABS-CBN uses Alibaba Cloud services for content storage and archiving, while in Thailand, the company partners with telecoms provider TrueBusiness to support digital transformation for local enterprises. At Indonesia's Telkomsel, Tencent Cloud's AI-powered palm verification technology is used to confirm users' identities and enable secure payments. In Malaysia, mobile network provider YTL Communications leverages Tencent's digital ID tools to streamline mobile registrations and curb fraud. 'We have helped many Southeast Asian enterprises adopt a robust multi-cloud strategy that is best suited to their business and compliance needs,' Bluefin Zhao, vice president of Tencent Cloud and managing director for APAC, told CNA. 'Our clients scale their business growth and success together with us in an ongoing and long-term manner,' he added. Zhao noted that Tencent's presence is particularly strong in Indonesia, Malaysia, Singapore, and Thailand - priority markets where the company has made 'significant headway', achieving double-digit growth rates over the past three years. He linked this progress to Tencent's roots in consumer technology. 'We have decades of experience from running one of the world's largest digital ecosystem platforms, WeChat/Weixin, that serves over a billion users to the largest video gaming ecosystems in the world,' Zhao said. That expertise is now powering Tencent's next-generation AI push. Its large model technology, Hunyuan, has recently been integrated into more than 700 internal products across Tencent's ecosystem, spanning 30 industries from public services and healthcare to tourism and finance. Large model technology refers to AI systems trained on vast amounts of data to perform a wide range of complex tasks, such as understanding language, generating content and analysing patterns. Wu Yongjian, the head of Tencent Cloud AI product and technology R&D, told CNA that Hunyuan delivers strong performance without heavy computing requirements, making it a good fit for mid-sized businesses and fast-growing markets. QUICK SHIFT OR COMMITTED STRATEGY? Geopolitical tensions are among the factors prompting Chinese tech firms to look more closely at Southeast Asia, as business with the West grows increasingly fraught, analysts say. The US has ramped up export controls on advanced semiconductors, placed dozens of Chinese tech firms on its export control entity list and urged allies and partners to curb reliance on Chinese digital infrastructure. But observers say it's not the overriding reason. Instead, they point to business fundamentals - from booming digital demand to favourable demographics - as the main drivers behind China's deepening tech pivot to the region. '(It is) a medium to long-term strategy for (the Chinese companies) to drive more growth to places beyond China and the North American market,' said Wang from The Futurum Group. Wang said Southeast Asia is 'naturally' appealing to Chinese tech companies due to years of business familiarity, established relationships and geographic proximity. These factors lower barriers to expansion and make it simpler to deploy talent and run cross-border operations compared to more distant markets, he said. 'Culturally, it's just a lot easier for Chinese companies to figure out … geographically, it's also a lot closer for the companies to set up their headquarters (in the region) and send the employees there.' Jia Kai, an associate professor at Shanghai Jiao Tong University's School of International and Public Affairs, highlighted the diversity of Southeast Asia and the varying levels of AI maturity across its economies. 'The Southeast Asian market is important because if we want to realise the potential of AI, we still need many applications in different fields, in different cultures and environments,' he told CNA. 'The most important thing for AI is to find different environments … the digital infrastructure of Southeast Asia has already been well established.' Senior executives from major Chinese tech firms interviewed by CNA also emphasised that Southeast Asia is a core strategic focus, especially considering the growing regional demand for AI services in the region. Governments, businesses and consumers are rapidly adopting AI-powered services to drive growth, boost efficiency and enhance daily life - a shift fuelled by urbanisation, mobile-first consumer behaviour and national efforts to digitise economies. AI, including its generative form, is expected to contribute around US$120 billion to Southeast Asia's gross domestic product (GDP) by 2027, according to an April report by Boston Consulting Group. Global management consulting firm iMARC Group noted that the Southeast Asian cloud computing market reached US$208.8 billion last year, and is projected to grow at a 10.49 per cent compound annual growth rate to exceed US$512 billion by 2033. Wu, the head of Tencent Cloud AI product and technology R&D, said that the company 'absolutely sees' Southeast Asia as a key strategic region, both as a market and as a testbed for refining its offerings. Fellow Tencent Cloud executive Zhao added that the region's rapid digital transformation, driven by progressive enterprises and supportive national policies, has been a 'key catalyst' for the company's accelerated growth there. 'The region is incredibly diverse and dynamic, with markets and industry verticals at varying stages of digital maturity,' Zhao said, adding that this presents opportunities as businesses seek customised digital solutions. In the case of the digital concierge at Jewel Changi Airport, for instance, early results from the pilot that began in March show that travellers prefer this intuitive, hands-free mode of engagement over traditional directories. Jeff Shi, SenseTime's Asia Pacific president, described the Southeast Asia market as 'huge and characterised by a young population' compared to others such as Northeast Asia, where the market is smaller and dominated by major corporations such as Sony and Honda. 'We are seeing faster growth and investing more, with over half of our approximately 200 enterprise customers in Asia based in Southeast Asia. Singapore, in particular, acts as a showcase for the region,' Shi told CNA. Choong Hon Keat, Singapore country manager at Alibaba Cloud Intelligence, said that Alibaba Cloud likewise views Southeast Asia as a key market, driven by 'escalating demand from local customers'. He added that a skilled workforce is the 'cornerstone' of successful digital transformation. 'We are unwavering in our commitment to invest in the development of digital talent (in the region),' Choong told CNA. Across the region, Alibaba Cloud is forging academic alliances. In Singapore, it has partnered with Nanyang Technological University to establish the Alibaba-NTU Global e-Sustainability CorpLab, aimed at advancing green technologies and promoting sustainable living. Meanwhile in the Philippines, the company has forged a partnership with De La Salle University to train students in advanced AI and cloud computing technologies. BUILDING TRUST ALONGSIDE INFRASTRUCTURE Even as Chinese tech firms eye further inroads into Southeast Asia, analysts warn that obstacles lie in store. Many governments and major firms in Southeast Asia remain more familiar with and are often deeply integrated into Western technology ecosystems. A 2023 report by the Center for Strategic and International Studies noted that US cloud giants such as Amazon Web Services, Microsoft Auzure and Google Cloud maintain a dominant foothold in the region. At the same time, the report found that US cloud computing companies face rising competition from Chinese rivals. It did not provide specific market share figures. This legacy integration - especially in government, banking, and regulated industries - means that most national agencies and large enterprises deploy hybrid or multi-cloud strategies, layering Western and Chinese infrastructure to balance performance with security and regulatory compliance. Jia from Shanghai Jiao Tong University said that adapting to divergent AI regulatory frameworks across the region poses a major hurdle for Chinese tech firms. CNA previously reported on how a race for AI regulation is taking place to avert the risks of the technology while hopefully reaping the rewards, with action being taken at the global, regional and national levels, including in Southeast Asia. This regulatory patchwork means that building trust will be just as important as building infrastructure, observers say. 'At present, I think misunderstanding and mistrust are the most significant bottlenecks to future cooperation or for Chinese tech companies entering the Southeast Asian market,' Jia said. Some companies in the region may have reservations about adopting Chinese cloud services or AI, said Wang from The Futurum Group. These concerns often centre on data privacy, regulatory compliance, and potential geopolitical pressure, particularly as governments grow more sensitive to issues of digital sovereignty and foreign influence. The Chinese tech firms will also need to carefully balance their own operational standards with those of local partners, Wang said. This tension between national concerns and global cooperation is not lost on Beijing, which has increasingly framed AI as a shared endeavour rather than a zero-sum race. 'AI must move toward inclusivity and shared benefit. It should become a public good for the benefit of all humanity,' said Chinese Premier Li Qiang as he opened the World AI Conference in Shanghai on Jul 26. He said if the world instead pursues 'technological monopolies, imposes controls, and erects barriers, AI will inevitably become a game exclusive to a privileged few'. Open AI ecosystems encourage diversity and multi-party engagement, providing an 'equal playground' for all, rather than central dominance, noted Jia from Shanghai Jiao Tong University. He further suggested that the effectiveness of these collaborative models will help determine whether Southeast Asia becomes primarily a proving ground or a true shaper of the next generation of Chinese AI models. 'If it's a public good, there is no leader - only stakeholders,' Jia said, describing the future of AI as a shared, multilateral enterprise rather than a contest for supremacy. Executives at Chinese tech firms acknowledge these sensitivities, saying they are working to build trust by focusing on long-term partnerships, transparency, and shared success. Wu from Tencent Cloud said that its partners help tailor workflows, knowledge management and deployment to specific industries. 'Although our product is robust, each customer's needs vary,' he said. 'Once deployed, the IP and knowledge stay with the client, which helps build trust and long-term value.' Choong from Alibaba Cloud Intelligence said the company operates on openness and trust. He cited Qwen3 - its most advanced open-source AI coding model to date - as an example, noting that by making it publicly available, Alibaba Cloud aims to foster a 'global community of innovation'. 'We believe that openness can in return democratise AI development, drive more AI innovation across businesses and society at large, and ultimately, benefit consumers with new and exciting AI applications.' Shi from SenseTime said the company's 'consistent' strategy is centred on helping partners succeed. 'We know the challenges and we also know the rewards of early AI adoption, so we share those with our partners, and we do want to share with more partners in Southeast Asia,' he said. 'I think customers are very happy with the fact that we are trying very hard to meet international norms - not (being) just a Chinese-Chinese company, but a company that is trying really to be international.'
CNA
a day ago
- CNA
Man bought compromised KrisFlyer accounts and used miles to buy food, devices and clothes, gets jail
SINGAPORE: A customer support service employee at a cryptocurrency company in Indonesia bought compromised KrisFlyer accounts online and came to Singapore repeatedly to spend the miles in them on food, devices and clothes. Rizaldy Primanta Putra, 28, was sentenced on Wednesday (Aug 6) to jail for three months and four weeks. He was also ordered to pay compensation of S$1,667.76 (US$1,230), which is the total value of the miles he used. Rizaldy pleaded guilty to two charges of unauthorised modification of computer content under the Computer Misuse Act by using KrisPay miles he was not authorised to use, with other charges taken into consideration. The court heard that Rizaldy worked in customer support services at cryptocurrency company Edgevana. His lawyer also said he was a "verified content creator" with more than 120,000 followers. From May to November last year, Rizaldy bought access to at least eight KrisFlyer accounts from four sellers he met in a Facebook group. He paid them between S$16 and S$200, depending on the number of miles in each account. He knew that one of the terms of use of such accounts was that they could not be sold, and that he was buying the details in breach of this term. The accounts were compromised and had been sold to Rizaldy without the consent of their owners. KrisFlyer is Singapore Airlines' rewards programme for members who fly with the airline or engage with SIA's partner businesses. Rewards are credited in the form of miles to each member's account, which is personal and cannot be transferred, sold or bartered. Rizaldy came to Singapore on Jun 7, 2024. He used one of the KrisFlyer accounts to log into the related application, to gain access to the KrisPay wallet. He used 435 KrisPay miles in one wallet to pay for a pastry worth S$2.90 at Paris Baguette at Bugis Junction, using the quick response (QR) code at the outlet. When this went through, he bought a drink and more pastries from the same outlet worth S$28.25 using 4,237 miles. Rizaldy left three days later and returned on Jun 21, 2024. This time, he went to the Sprint Cass Electronics outlet at Changi Airport Terminal 3 and bought a Samsung phone and a phone case worth S$1,636.61, using 245,491 KrisPay miles in another account. Other than this, he also bought cameras, shoes and clothes using the compromised KrisFlyer accounts. Employees at Singapore Airlines detected the unauthorised transactions and a police report was lodged in October 2024. He was detained at the airport when he returned to Singapore this year. The prosecutor sought four months' jail, noting that there was some escalation in Rizaldy's offending. Defence lawyer Leong Zhen Yang said his client was remorseful and "does not seek to excuse his wrongdoing". He said his client accepts that ignorance was not an excuse, but added that the value of the miles is hard to ascertain, as one mile is not equivalent to one dollar. The miles are also incentives with an expiration date, said Mr Leong. He said Rizaldy undertook to make full restitution "as soon as practicable", but could not do it earlier as he has been remanded since May.
CNA
a day ago
- CNA
Indonesia becomes first in Southeast Asia to deploy short-range ballistic missile system
SINGAPORE: Indonesia has become the first country in Southeast Asia to deploy a tactical ballistic missile system that will enhance its short-range battlefield capabilities, based on sightings by military enthusiasts in East Kalimantan. Pictures of the KHAN missile, produced by Turkish manufacturer Roketsan, surfaced on the Sahabat Keris Facebook page last Friday (Aug 1) and have been widely reported by defence blogs, as well as Indonesian news portal Kompas. Photos of the missile on a launcher were reportedly taken at the Indonesian Army's Raipur A facility in East Kalimantan. The 7.1m missile has a diameter of 610mm and a range of up to 280km, according to Roketsan's website. It weighs 2,500kg and is armed with a 470kg high-explosive warhead. It has an accuracy of sub-10m circular error probability, providing 'accurate and effective fire power on strategic targets in the battlefield', according to Roketsan. Potential targets include artillery and air defence systems, radar sites and logistics facilities. The range of the KHAN missiles extends Indonesia's strike radius into disputed maritime corridors, noted news site Defence Security Asia. While Indonesia is not a claimant of the South China Sea, China's 'nine-dash line' claiming most of the waterway overlaps with Indonesia's exclusive economic zone (EEZ) near the oil- and gas-rich Natuna Islands. Indonesia placed its KHAN missile order in November 2022 and is the first military force outside of Turkiye to have the missile in its inventory, Roketsan's deputy general manager Murat Kurtulus reportedly said at the time. CNA has sent queries to the Indonesian military on how many KHAN missiles it acquired and where it is deploying them. Southeast Asia's largest economy has been looking to modernise its ageing military hardware as well as diversify its defence suppliers in recent years. In 2022, Indonesia purchased 42 Rafale jets from France for US$8.1 billion. China has also reportedly offered to sell its J-10 fighter jets to Jakarta. Indonesia has enhanced cooperation with Turkish defence manufacturers in recent months. In June at the Indo Defence 2025 exhibition, it signed two contracts with Roketsan – one for the procurement of the ATMACA Anti-Ship Missile and the ATMACA Weapon System, and the second for a planned joint venture agreement to develop local capabilities in Indonesia for the 'assembly, domestic production, and sustainability of missile technologies', announced Roketsan. Last month, Indonesia signed a contract to buy 48 KAAN fighter jets from Türkiye. The stealth twin-engine fighter, developed by the state-owned Turkish Aerospace Industries, is set to enter production soon with deliveries to the Turkish Air Force expected by 2028 or 2029.
