Indonesia nears trade deals with EU, Eurasian bloc
JAKARTA: (Bernama) Indonesia is close to finalising trade deals with the European Union (EU) and the Eurasian Economic Union (EAEU) by year-end to expand market access and attract foreign investment, officials said.
The two agreements are the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) and the Indonesia-EAEU Free Trade Agreement (FTA).
Trade Minister Budi Santoso said the agreements are crucial amid global trade uncertainty, with the potential to diversify Indonesia's export markets and provide alternatives for products impacted by the United States tariff policies.
"Negotiations are progressing rapidly, and we are targeting completion this year. We will ensure the benefits can be felt by businesses and the public at large,' he said in a statement.
The deals aim to lower tariff and non-tariff barriers on key Indonesian exports such as palm oil, agricultural products, textiles, and electronics, while also covering investment, sustainability, and support for small and medium-sized enterprises (SMEs).
Talks with the EU began in 2016, while negotiations with the EAEU, comprising Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, were launched in 2022.
According to the Ministry of Trade, Indonesia's total trade with the EU reached US$30.1 billion in 2024, with a US$4.5 billion surplus, and trade with the EAEU stood at US$4.1 billion, with a US$1.1 billion deficit.
The ministry said the agreements are expected to diversify export markets and reinforce Indonesia's position as a key economic player in Southeast Asia.
"These deals are not only about increasing trade, but also about boosting competitiveness, creating jobs, and supporting industrial growth,' said International Trade Negotiations director-general Djatmiko Bris Witjaksono.
The Indonesian government is promoting the deals through its BISA Export Programme, which supports local micro, small, and medium enterprises (MSMEs) in accessing global markets through business matching, training, and partnerships. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
34 minutes ago
- Borneo Post
Plateau roses from northwest China blossom onto global stage
Kushui rosesin Kushui Town of Yongdeng County, Lanzhou, northwest China's Gansu Province on May 8, 2025. – Xinhua photo LANZHOU (June 13): Nestled in the barren Loess Plateau, the small town of Kushui in northwest China's Gansu Province bursts into a sea of vibrant roses every mid-May. Kushui Town in Yongdeng County is one of China's leading rose-producing regions, with a cultivation history dating back more than two centuries. 'The Kushui rose requires low-intense labor, being highly resistant to drought and cold, which makes it perfectly adapted to thrive here,' said Xu Dahong, deputy director of the county's rose research institute, adding that the flourishing rose industry has played a vital role in boosting the local economy. As a selenium-rich variety, Kushui roses boast a higher oil-extraction rate than many other types. The precious essential oil has become a coveted ingredient in global cosmetics, perfumes and food products. It has not only been incorporated into numerous domestic cosmetic brands but also exported to countries including Japan, the Republic of Korea, Singapore, Australia, France and the United States. 'Our distillation techniques, enhanced by digital controls, guarantee world-class quality standards,' said Ba Cunli, head of a local rose essential oil manufacturer. Ba's company sells rose-infused skincare products primarily through e-commerce channels, with online sales accounting for 70 per cent of total revenue. Where ancient traditions meet modern innovation, Kushui roses – once preserved in salt – now flourish through cold storage technology, enabling year-round production, according to Ba. Flower cakes with edible roses inside in a workshop of a company in Lanzhou, northwest China's Gansu Province on May 8, 2025. – Xinhua photo Beyond essential oil extraction, the roses find a wide application as food flavoring and form the foundation of an increasingly diversified product line. 'The sweet, nutrient-rich petals are rich in anthocyanins and vitamin C,' said Shi Xiaochang, founder of a local rose-processing company. With annual revenue exceeding 20 million yuan (about US$2.77 million), Shi's firm has developed more than 100 rose-based products, including beverages, flower cakes, wine and tea – helping boost the incomes of nearly 2,000 local households. Today, Kushui Town cultivates roses across 21,000 mu (about 1,400 hectares) of land, with average yields reaching 400 kg per mu, and has 27 rose processing enterprises, according to Ye Chenglong, Party secretary of Kushui Town. Expanding to the entire county, rose plantations now cover 101,600 mu. Annual production of fresh roses reaches 28 million kg, yielding 1,200 kg of essential oil, 2.6 million kg of dried flower buds, and 1,500 tonnes of rose jam – with the output value of the entire rose industrial chain reaching 2.8 billion yuan. A local woman picks Kushui roses in Kushui Town of Yongdeng County, Lanzhou, northwest China's Gansu Province on May 8, 2025. – Xinhua photo Yet this ambitious town continues pursuing higher-yield, longer-blooming rose varieties in a bid to strengthen the rose industry and further increase farmers' incomes. 'We are striving to create a flagship product that will enhance the popularity of Kushui rose and reinforce the entire industrial chain,' Ye added. – Xinhua China Kushui Loess Plateau ROSE Xinhua
The Star
2 hours ago
- The Star
FBM KLCI set to remain range-bound
PETALING JAYA: As the world at large heaved a sigh of relief at the conclusion of the United States-China trade discussions in London on Tuesday, attention has turned back towards Malaysian equities, as investors wonder what is in store for the FBM KLCI. This is especially relevant given that Malaysia has yet to conclude its own trade talks with Washington as the former continues its effort to reduce the 24% hitherto provisional tariffs that were imposed on April 2 by US President Donald Trump. Most analysts, however, are of the view that at the very least, the conclusion of trade meetings between the United States and China have put paid to any foreseeable escalation of trade tensions between the two superpowers in the near term, and while cautious sentiments still surround the FBM KLCI, the benchmark index should perform better in the second half of financial year 2025 (2H25). Rakuten Trade head of equity sales and analyst Vincent Lau believes that the announcement from US Treasury Secretary Scott Bessent that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations, signals further goodwill. 'We feel things can only improve from here, and 2H25 could be stronger for the FBM KLCI following slightly underwhelming 1Q25 corporate results, especially if Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz can conclude a deal with the Trump administration promptly in next week's talks,' he told StarBiz. As such, Lau acknowledged investors could still adopt a wait-and-see approach over the next week, which has caused the FBM KLCI to lag behind other regional and global bourses, predicting that the index could trade between 1,520 and 1,550 points in the third week of June. He said this is because investors may still be concerned that Malaysia is largely an export-driven market, as businesses are also taking time to adjust to the impact of the expanded sales and services tax (SST) that will come into effect on July 1. On the other hand, he opined that with the European Central Bank having reduced rates by 25 basis points this month, and Bank Negara and the US Federal Reserve also considering a similar move within the next quarter, funds are ready to return to the market. Lau added that the SST broadening by the government is necessary, which would assure investors that the current administration is serious in improving its tax revenue. Of interest, Areca Capital chief executive Danny Wong commented that the US-China trade tension may not have been as bad as have been portrayed in the mainstream media in recent months, given this week's developments. 'If both sides willingly continue to resolve these tariff issues, we believe the FBM KLCI will recover significantly. Short-term outlook remains dependent on news, but we now see an upside bias. 'As suggested, developing markets including Asian bourses are expected to perform better in 2H25,' he told StarBiz. While also expecting a gradual recovery for the FBM KLCI in 2H25, Tradeview Capital chief investment officer Nixon Wong is predicting the index to trade 'neutral' range-bound, as investors take to the sidelines as they wait for conclusive trade talk updates between Putrajaya and the Trump administration. 'However, signals from China and the United States have been stable and less hostile for the time being. 'We should see gradual recovery in the last six months of 2025 as business sentiment may recover, and fund flows may be more risk-on after getting more details and clarity on the US trade policies after mid-July,' he said. Meanwhile, a head of research and analyst at a foreign brokerage firm is projecting for the premier index to trade within a narrow range of 1,510 to 1,530 for this week, reflecting cautious optimism from the Washington-Beijing trade truce, but tempered by uncertainty in the US-Malaysia talks. 'For next week ending June 20, the index could test 1,500 to 1,550, with potential upside toward 1,550 if trade talks progress favourably and domestic sectors such as banking and construction remain supportive. 'However, a bearish scenario could see the index drop below 1,500 if US-Malaysia trade talks falter or global trade tensions escalate,' she said. Elaborating, she said the US-China resolution in London provided some clarity, reducing immediate uncertainty about a potential escalation in the trade war, although the relatively high US tariff rate of 55% on China could disrupt global supply chains, particularly in Asia, where Malaysia is a key player in manufacturing and electronics exports. Beijing has tagged the United States with a 10% levy rate in return. The agreement's positive signal of a trade truce may boost global market sentiment, but the high tariffs could pressure Malaysian exporters reliant on the US or Chinese markets, especially in technology and semiconductors, she pointed out. The analyst explained, 'The market's reaction to the United States-China trade truce will likely solidify next week. 'If the framework is ratified by Trump and Xi, optimism could drive the FBM KLCI toward the 1,550 resistance level, especially if global equities rally. 'However, ongoing trade talks between Malaysia and the United States will remain a headwind. 'Any indication of punitive tariffs on Malaysian exports, such as electronics, which account for about 40% of Malaysia's exports, could pressure the index, particularly tech-heavy components like Inari Amertron Bhd and Nationgate Holdings Bhd .' On the flipside, positive domestic factors, such as foreign inflows and a stronger ringgit may offset some external pressures, supporting sectors like construction, property and renewable energy, she said. 'Technical forecasts suggest a potential rebound if the 1,600 support holds, with upside targets at 1,620 to 1,630. However, a break below 1,500 could signal a bearish trend toward 1,487, driven by trade war fears,' added the analyst. Taking a look at notable sectors, she said banking is expected to lead gains due to its strong earnings growth and domestic liquidity, while export-driven industries such as technology and commodities will be vulnerable to US tariff developments, although they could stabilise if trade talks progress favourably. 'Investors should focus on quality, dividend-paying stocks in resilient sectors like banking and construction, while monitoring export-driven sectors like technology for tariff-related risks,' she said.
The Star
2 hours ago
- The Star
Bank Negara unveils full QRI programme to boost corporate flexibility
The central bank said the rollout builds on the success of the pilot programme, which was introduced in April 2024. PETALING JAYA: Bank Negara has announced the full rollout of the qualified resident investor (QRI) programme for eligible corporates, effective July 1 as part of efforts to promote two-way flows in the onshore foreign exchange market. In a statement yesterday, the central bank said the rollout builds on the success of the pilot programme, which was introduced in April 2024. Since its inception, the QRI programme has generated cumulative inflows from participants exceeding US$1bil into the domestic financial market. The QRI programme allows eligible resident corporates to enjoy greater flexibility in managing their future direct investments abroad without needing prior approval from Bank Negara. To participate, corporates are required to complete a one-time registration with Bank Negara. Upon successful registration, these corporates must repatriate and convert eligible foreign currency funds into ringgit in order to benefit from the programme's flexibilities. Eligible corporates include all resident companies that repatriate and convert foreign currency proceeds from their overseas investments, and that demonstrate good corporate governance as well as compliance with Bank Negara's foreign exchange policy. The QRI programme will be available until June 30, 2028.
