Indonesian manufacturers seek new export markets due to US tariff uncertainty
Indonesian manufacturers are urgently seeking new export markets following reciprocal tariffs announced by United States President Donald Trump's administration. Having been long reliant on the US market, many businesses are now eyeing Europe and Southeast Asia ... while others are shifting their focus inward, looking for ways to tap into Indonesia's vast domestic market. Saifulbahri Ismail reports.
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CNA
7 hours ago
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Indonesia expects to conclude free trade talks with EU by end of June
JAKARTA: Indonesia said on Saturday (Jun 7) that free trade negotiations with the European Union, which have been going on for nine years, are expected to finish by the end of June. Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday. "Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025," Airlangga Hartarto said in a statement. He did not disclose details about what agreements may have been reached. Denis Chaibi, EU Ambassador to Indonesia, said: "Negotiations are ongoing and substance will determine timing. We will communicate in details when we have an outcome." The EU is Indonesia's fifth biggest trade partner, with total trade between the two reaching US$30.1 billion last year. Indonesia had a US$4.5 billion trade surplus, Airlangga said. Indonesia and the EU have previously disagreed on the EU's trade rules for products with potential links to deforestation which could affect Indonesian palm oil, as well as Jakarta's ban on exports of raw minerals. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with US tariff challenges. Seeking to end US trade deficits worldwide, US President Donald Trump announced sweeping "reciprocal" tariffs that have since been paused until July.
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CNA
2 days ago
- CNA
Indonesia probes alleged nickel mining in world-renowned coral reef haven Raja Ampat
JAKARTA: Indonesia is investigating alleged nickel mining in Raja Ampat amid growing concerns about environmental damage to one of the world's top marine biodiversity hotspots. An official from the Environment and Forestry Ministry confirmed on Wednesday (Jun 4) its law enforcement division is probing the situation. Her comments came a day after activists from non-governmental organisation (NGO) Greenpeace Indonesia staged a peaceful protest in Jakarta at an environmental conference attended by Deputy Foreign Minister Arif Havas Oegroseno. Raja Ampat, in Southwest Papua province, harbours an estimated 75 per cent of the world's known coral species. Designated as a UNESCO Global Geopark, the archipelago is also home to over 2,500 species of fish, according to Greenpeace Indonesia. 'We are currently following up and developing steps for law enforcement,' said Rosa Vivien Ratnawati, secretary of the ministry's Environmental Control Agency, at a sustainability forum in Bali on Wednesday, reported the Jakarta Globe. The previous day, Energy and Mineral Resources Minister Bahlil Lahadalia said he would summon companies, whether state-owned or private entities, with nickel mining permits in Raja Ampat for a review. 'We will review this with my directors. I will call the owners in. There must be local values that must be respected,' Bahlil was quoted as saying by Jakarta Globe on Tuesday at the sidelines of the Human Capital Summit in Jakarta. At the Indonesia Critical Minerals Conference and Expo on Tuesday, a group of protesters was seen walking into the event venue with large banners as deputy minister Arif was speaking. Some of the banners read 'Nickel mines destroy lives', 'Save Raja Ampat from nickel mining' and 'What's the true cost of your nickel?'. Greenpeace said in a press release that its youth activists as well as four young West Papuans from Raja Ampat were involved in the demonstration, intended to warn government officials and industry leaders about the environmental and social costs of nickel extraction. News outlet Tempo reported three activists and a Papuan woman were detained by the police after the protest. PROTECTED FORESTS CLEARED FOR NICKEL MINES: NGO Nickel is a critical mineral for stainless steel as well as electric vehicle batteries. Indonesia is the world's biggest nickel producer and is trying to keep more of the production value chain on its shores. But nickel extraction and processing – in places such as Sulawesi and Halmahera in the Maluku islands – have caused concerns such as health impacts on surrounding communities, damage to forests, rivers and other ecosystems, as well as infringement of indigenous people's rights. A study by Greenpeace found that over 500 hectares of forest and native vegetation have been cleared for nickel mines on the West Papua islands of Gag, Kawe and Manuran within the Raja Ampat archipelago, resulting in soil runoff and sedimentation that endangers coral reefs and marine ecosystems. According to Greenpeace, the three islands are classified as small islands and are protected under the law on the management of coastal areas and small islands, which prohibits mining activity in such regions. While the full legal documentation of several mining projects in Raja Ampat is still under review, two licenced operators, Gag Nikel and Kawei Sejahtera Mining, are known to be active in the region, news outlet Jakarta Globe reported. According to Jakarta Post, Gag Nikel holds an operating licence that encompasses the entire Gag Island, which is regarded as a protected tropical rainforest. According to an annual report by local mining giant Antam in 2023, the island has estimated nickel ore reserves of more than 42 million dry tonnes. Minister Bahlil, who comes from Papua, stressed the need for special consideration in mining regulations given Papua's special autonomy status, local media reported. Local authorities in Raja Ampat have expressed frustration at their limited jurisdiction, according to Jakarta Globe. The archipelago's regent, Orideko Burdam, said that although 97 per cent of the archipelago comprises conservation land, decisions on mining permits are controlled by the central government in Jakarta, hindering local intervention. 'When environmental damage occurs due to mining, we are powerless because we lack authority,' he was quoted as saying by Jakarta Globe. Julian Kelly Kambu, head of the West Papua Forestry and Environment Department, said that several firms were given mining licences before the creation of Southwest Papua as a province. Julian warned that unless regulatory authority is decentralised, the sustainable development goals in the region could be at risk, the Jakarta Globe reported. Local leaders are calling on the central government to reconsider the limits of regional authority over forest and land management, to encourage greater involvement from indigenous communities to improve their economic well being.
CNA
2 days ago
- CNA
Indonesian jailed for 2002 Bali bombings starts coffee business
An Indonesian convicted for bomb-making in the deadly 2002 Bali nightclub bombings has launched his own coffee business after being released on parole. Umar Patek, who was jailed for 20 years for his crimes, was released on parole in 2022 and says he will use some of the earnings from his business to help survivors of the attacks. (Thumbnail photos: File/AFP, Reuters)
