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Asia News Network
5 days ago
- Business
- Asia News Network
Tariff jitters, rising rivals threaten Indonesia's foreign investment charm
August 14, 2025 JAKARTA – Indonesia has seen foreign investors' appetite weaken despite surging domestic investment that took up the slack. Analysts cited global uncertainty, especially jitters over United States import tariffs, as a factor keeping foreign capital out of emerging markets. Adding to the challenge, rival Southeast Asian nations have been upping their game, chipping away at Indonesia's share of the pie. Foreign direct investment (FDI) in Indonesia fell 6.95 percent year-on-year (yoy) to Rp 202.2 trillion (US$12.4 billion), accounting for only 42.3 percent of total investment in the second quarter of this year. Meanwhile, domestic investment made up the remaining 57.7 percent at Rp 275.5 trillion, according to the latest report from the Investment Ministry. Donny Donosepoetro OBE, CEO of Standard Chartered Indonesia told The Jakarta Post on Monday that foreign sentiment globally had been generally cautious so far this year, shaped by heightened geopolitical tensions in various regions and uncertainties surrounding US trade tariff policy. 'These uncertainties have the potential to alter the global trade landscape and weigh on global growth through higher prices from tariff implementation,' he said. On the domestic front, he added, budget refocusing earlier this year and a relatively modest growth outlook have also contributed to more cautious consumer spending and investment decisions. Chief Indonesia and India Economist at HSBC Global Research Pranjul Bhandar also said that many countries had taken a hit amid global uncertainties, particularly with the US tariffs that had been imposed, which prompted companies to prefer saving over investing. 'With $25 billion of exports going to the US from Indonesia every year, a tariff of about 19 to 20 percent could actually hurt growth by about 0.3 percentage points,' she said during a virtual media on Friday. In the equity market, the Indonesian Stock Exchange (IDX) recorded the largest share of annual outflow at Rp 62.4 trillion on Aug. 5. Despite the mounting exits, the Indonesian Composite Index (IHSG) nearly hit its all-time high set in September last year, Bloomberg reported. Head of Equity Strategy Asia Pacific HSBC Global Research Herald van der Linde said in the same media briefing that the recent growth in the country's capital market was not driven by foreign investors, but rather largely by domestic funds and retail investing, in which the local investors accounted for about 50 percent of all the trades over the past months. Some initial public offerings (IPOs) and mid-cap stocks, such as in the energy and technology sectors, had pulled the market higher. However, he noted that Indonesia still 'needs to make itself attractive' as an investment destination in the ASEAN region, especially as Malaysia and Singapore step up their IPOs and companies listed on their markets. 'Vietnam might as well soon get upgraded from a frontier market to an emerging market. That means that within ASEAN, Vietnam is becoming sort of a contender for the ASEAN pool of money […] therefore, there's more competition,' he explained. Better times ahead? Pranjul from HSBC said the looming uncertainties over tariffs could bring negative growth in the short run, but she pointed out that the rejigged global supply chains could also serve as a medium-term opportunity for Indonesia to scale its up mid-tech manufacturing. 'Multinational companies are looking for new destinations for where they can produce and sell. And my sense is once the tariff storm settles, Indonesia can actually benefit,' Pranjul said. Indonesia's exports to China have been dominated by commodities, while destinations like the US and European countries import Indonesian consumer goods like textiles, apparel, footwear and furniture. However, Pranjul said these exports were miniscule. 'For instance, only 9 percent of Indonesia's exports go to the US. If you look at Indonesia's apparel exports, it's only 25 percent of Vietnam's apparel exports. So, Indonesia is selling these consumer goods, these mid-tech goods, but it needs to be scaled up,' she noted. By scaling up production, Indonesia could attract more manufacturers looking for new destinations, as well as spur corporate investment and growth in the country. Pranjul added that the reforms, which could take years, should also include efforts to enhance infrastructure, expand more trade agreements, particularly with advanced economies, develop the country's skilled workforce and streamline business practices. 'If Indonesia can get all of this right, I think in a two to three-year horizon, this could be an opportunity for FDI inflows and for growth,' she concluded. Donny from Standard Chartered also expressed optimism about Indonesia's outlook for the second half of this year, supported by expectations of a stronger growth outlook and greater clarity on US trade policy. Several key factors to sustaining investor confidence and further unlocking investment flows, he added, include accelerating government spending, particularly in priority programs that can drive economic growth. He also emphasized the importance of maintaining fiscal discipline, including by keeping the budget deficit capped at 3 percent of gross domestic product and continuing structural and institutional reforms to attract private investment, especially in higher value-added sectors. Donny highlighted that despite the increasing outflow, Indonesia's bond market remained resilient, citing that it still posted net inflows of around $3.3 billion between the January and July period. He attributed the growth to the easing of uncertainties about the second half of the year and the strengthening rupiah, which gave Bank Indonesia (BI) room to ease monetary policy and further support the bond market.
L'Orient-Le Jour
24-07-2025
- Business
- L'Orient-Le Jour
Syria plans to rehabilitate airports to accommodate tens of millions of passengers
The president of the Syrian Civil Aviation Authority, Omar al-Houssary, said Thursday in a statement that the country needed to rehabilitate its five airports, which have deteriorated due to years of war and financial difficulties, mainly linked to sanctions targeting the regime of Bashar al-Assad, which fell on Dec. 8. Houssary, appointed Wednesday by the new government formed by the Islamist coalition leading Syria, added that the country "plans to build a new airport in Damascus that can accommodate 30 million passengers, alongside the rehabilitation of the current airport." The rehabilitation of Aleppo airport is also a priority, as is the "conversion of Mezzeh military airport into a civilian airport," also in the Damascus region, he said. The statements from the aviation authority president were made on the sidelines of the Syrian-Saudi Investment Forum 2025, launched this week in Damascus with large participation from both sides. The forum saw the signing of a cooperation agreement between the Saudi Airports Holding Company and the Syrian Civil Aviation Authority, which saw the direct entry of Saudi Arabia into development projects in the Syrian aviation sector. The Syrian capital welcomed a Saudi delegation Wednesday, including more than 100 private sector companies and 20 government entities, according to a statement from the Saudi Investment Ministry, which said that the forum marks "the start of a new era of investment between the kingdom and Syria." During this investment forum held at the presidential palace, Saudi Investment Minister Khalid al-Falih announced "the signing of 47 agreements and memoranda of understanding with a total value of nearly 24 billion Saudi riyals (about $6.4 billion)."
Daily News Egypt
09-07-2025
- Business
- Daily News Egypt
Chinese Premier Li Qiang arrives in Egypt for high-level talks
Chinese Premier Li Qiang arrived in Cairo on Wednesday for his first official visit to Egypt, where he was greeted by his counterpart Mostafa Madbouly at the start of a trip aimed at strengthening the strategic partnership between the two countries. Li, who is heading a high-level delegation, was given an official reception ceremony at Cairo International Airport, which included the playing of both nations' national anthems and an inspection of the guard of honour, a statement from Madbouly's office said. The two premiers are scheduled to co-chair an expanded session of talks and witness the signing of several agreements aimed at enhancing bilateral cooperation in various fields. Upon his arrival, Li emphasized the deep historical and cultural ties between the two nations, noting that Egypt was the first Arab and African country to establish diplomatic relations with the People's Republic of China nearly 70 years ago. 'The ancient Silk Road linked our two peoples across thousands of miles, and our friendship has stood the test of time,' Li said in a statement. 'Under the leadership of President Xi Jinping and President Abdel Fattah El-Sisi, our cooperation continues to deepen, setting a model for South-South cooperation.' Li added that China views Egypt as a key partner in the Global South and is eager to enhance collaboration across political, economic, and multilateral platforms. During the visit, the two sides are expected to discuss expanding cooperation in infrastructure, energy, trade, and technology, as well as joint efforts to promote regional stability and sustainable development. He concluded by affirming China's commitment to contributing positively to Egypt's development and to building a stronger 'China-Egypt community with a shared future.' In June, Egypt and China agreed to strengthen economic cooperation in key sectors such as electric vehicles, electronics, and artificial intelligence, and will coordinate to organise an investment promotion forum in Egypt, the Egyptian Investment Ministry said. The agreement came during a meeting in Beijing between Egyptian Minister of Investment and Foreign Trade Hassan El-Khatib and Chinese Commerce Minister Wang Wentao. The two sides agreed to enhance cooperation in several fields, including electric cars, feeder industries, electronics, water desalination, solar panels, and artificial intelligence. They also agreed to collaborate on strengthening supply chains. Chinese Commerce Minister Wang Wentao praised the bilateral trade volume, which has reached $17bn, affirming that China remains Egypt's largest trading partner. He highlighted successful investment cooperation in the TEDA-Suez zone, which has attracted significant Chinese investment, alongside major projects implemented by Chinese firms, including the Iconic Tower and Central Business District in the New Administrative Capital, the electric train, and renewable energy projects.
Al Arabiya
05-07-2025
- Business
- Al Arabiya
Malaysia puts anti-dumping duties on some China, South Korea, Vietnam iron, steel
Malaysia said on Saturday it has imposed provisional anti-dumping duties ranging from 3.86 percent to 57.90 percent on certain iron and steel imports from China, South Korea and Vietnam. The duties on imports of galvanized iron coils or sheets or galvanized steel coils or sheets were imposed based on a preliminary determination made in an anti-dumping duty investigation initiated on February 6, the investment, trade and industry ministry said in a statement. 'The government finds that there is sufficient evidence that the importation of the subject goods... is being dumped and that the investigation should be continued,' it said. The provisional duties be in effect from Monday for up to 120 days with a final determination to be made by November 3, the ministry said.
Roya News
02-07-2025
- Business
- Roya News
Jordan approves changes to grant investors citizenship, residency
The Jordanian government on Wednesday approved new regulations to grant Jordanian citizenship or residency to investors, based on recommendations from the special committee for investors. The decision, made during a cabinet session chaired by Prime Minister Jaafar Hassan, aims to stimulate investment and economic activity in the kingdom. New Citizenship Regulations for Investors The new regulations outline several avenues for investors to obtain Jordanian citizenship: Stock Market Investment Investors can gain citizenship by purchasing at least 1 million Jordanian dinars (JOD) in new shares of Jordanian companies. These shares must be held for three years and cannot be encumbered, loaned, or borrowed. The purchase must occur within four months of the Investment Ministry's approval, with no more than 20% of the total investment concentrated in a single company's shares. New Investment Projects Citizenship is granted for establishing new investment projects in productive economic sectors. The paid-up capital must be at least 700,000 JOD within the capital governorate or 500,000 JOD outside it. These projects must create 20 jobs for Jordanians within the capital or 10 jobs outside, verifiable through Social Security Corporation records. Investors meeting these criteria will initially receive a temporary Jordanian passport for three years, with full citizenship recommended after sustained compliance. Acquiring Shares in Existing Projects Investors can secure citizenship by purchasing new shares in existing productive economic projects with a paid-up capital of at least 1 million JOD. The project's new fixed assets must be at least 500,000 JOD. The investment requires a feasibility study, audited financial statements, and must create 20 new jobs for Jordanians (or as specified by Cabinet decision based on investment type). These new shares must be held for three years. Like new projects, a temporary passport is issued for three years, followed by a citizenship recommendation upon compliance. Existing Investments For investors with existing projects, citizenship may be granted if their average share of the total fixed and tangible non-current assets (calculated from audited annual statements over the past three years) is at least 700,000 JOD within the capital, maintaining 90% of the required 20 Jordanian jobs per month for three years. Outside the capital, the average share must be at least 350,000 JOD, maintaining 90% of the required 10 Jordanian jobs per month for three years. Sector-Specific Investments Citizenship is also available to investors in pharmaceutical, medical device, food logistics, storage, and large warehouse sectors. Companies must have an investment of at least 3 million JOD and employ at least 20 Jordanian workers in the capital (or 10 outside) registered with the Social Security Corporation for the last three years, specifically in pharmacist roles. High Employment Generation Investors who employ 150 Jordanian workers in the capital or 100 in other governorates, registered with the Social Security Corporation for at least one year and maintained for two consecutive years after obtaining citizenship, are eligible. Family Inclusion The investor's spouse, unmarried, widowed, or divorced daughters living under their care, and unmarried sons under 24 years old at the time of application are eligible. For investments exceeding 2 million JOD, male children under 30 years old, their spouses, and children are also eligible. Five-Year Residency Through Real Estate Investors or individuals can obtain or renew a five-year residency by purchasing real estate from a developer valued at no less than 200,000 JOD, as appraised by the Department of Lands and Survey. The property must be retained for at least five years without disposal or encumbrance. Residency is issued upon recommendation from the special committee for investors by the Ministry of Interior. Renewal requires continued ownership of the same property or a new property of equivalent value. Conditions and Limitations Jordanian citizenship will not be granted to investors who acquire shares from another investor who previously obtained citizenship based on those same shares. These regulations will apply to a maximum of 500 investors annually, subject to security checks and financial solvency verification. In the event of non-compliance with any conditions, Jordanian citizenship will be withdrawn, or residency canceled. These regulations will undergo review and evaluation every six months.
