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Bangkok Post
5 hours ago
- Business
- Bangkok Post
Bangkok Bank touts Thai SMEs in Indonesia
Bangkok Bank (BBL) stands ready to support Thai medium-sized enterprises expanding to Indonesia, where opportunities are growing across various supply chain industries. Speaking on Wednesday at the 2025 Indonesia Investment and Trade Forum hosted by Bangkok Bank and its Indonesia operation Permata Bank, BBL president Chartsiri Sophonpanich said Indonesia offers strong economic and social potential, with GDP per person rising from US$3,370 in 2015 to $4,980 last year, reflecting rising national wealth and an attractive investment destination. In addition to supporting large local corporations investing in Indonesia, the bank is also prepared to assist small and medium-sized enterprises (SMEs) seeking to expand into the regional market. These medium-sized businesses often play a crucial role in the supply chains of various industries, he said. "The growth of Indonesia's middle class and national wealth will help drive the expansion of Thai SMEs in supply chain sectors such as food and beverage, renewable energy, automotive parts, manufacturing and infrastructure," said Mr Chartsiri. However, he warned businesses must navigate increasing challenges driven by four major global shifts: climate change, technological advancement, geopolitical and economic volatility, and the relocation of production bases amid deglobalisation. Diversifying into high-growth markets such as Indonesia can help to manage risk while unlocking greater opportunities, said Mr Chartsiri. Regarding the recent suspension of Prime Minister Paetongtarn Shinawatra by the Constitutional Court, he said it is unlikely to significantly impact the government's operations. The cabinet is expected to continue functioning as usual and House dissolution is not anticipated. BBL plans to monitor the political situation, said Mr Chartsiri. Pandu Sjahrir, chief investment officer of Indonesia's sovereign wealth fund Daya Anagata Nusantara, said during the forum trade and investment between Thailand and Indonesia have grown steadily in recent years. As of the first quarter of 2025, Thailand's cumulative investment in Indonesia tallied $1.4 billion, with key contributions from the chemical and pharmaceutical, rubber and plastics, mining, food, automotive and transport sectors. Foreign direct investment by Thai investors in Indonesia, particularly in the chemical, renewable energy and automotive sectors, supported the country's sustainable growth and green transformation, he said. Major contributors include Thai corporations such as PTT Global Chemical, Ratch Group, Egco Group, SCG and Thai Summit Group. "Thailand is well-positioned to support Indonesia's economic transformation through high-impact investments in critical sectors such as chemicals, renewable energy and infrastructure," Mr Pandu said. He said Indonesia is focusing on eight priority sectors: minerals (particularly nickel and bauxite), renewable energy (including upstream oil and renewable platforms), digital infrastructure (such as data centres), healthcare, financial services, utilities and infrastructure, industrial estates and property, as well as food and agriculture.
Bangkok Post
10 hours ago
- Business
- Bangkok Post
BBL touts Thai SMEs in Indonesia
Bangkok Bank (BBL) stands ready to support Thai medium-sized enterprises expanding to Indonesia, where opportunities are growing across various supply chain industries. Speaking on Wednesday at the 2025 Indonesia Investment and Trade Forum hosted by Bangkok Bank and its Indonesia operation Permata Bank, BBL president Chartsiri Sophonpanich said Indonesia offers strong economic and social potential, with GDP per person rising from US$3,370 in 2015 to $4,980 last year, reflecting rising national wealth and an attractive investment destination. In addition to supporting large local corporations investing in Indonesia, the bank is also prepared to assist small and medium-sized enterprises (SMEs) seeking to expand into the regional market. These medium-sized businesses often play a crucial role in the supply chains of various industries, he said. "The growth of Indonesia's middle class and national wealth will help drive the expansion of Thai SMEs in supply chain sectors such as food and beverage, renewable energy, automotive parts, manufacturing and infrastructure," said Mr Chartsiri. However, he warned businesses must navigate increasing challenges driven by four major global shifts: climate change, technological advancement, geopolitical and economic volatility, and the relocation of production bases amid deglobalisation. Diversifying into high-growth markets such as Indonesia can help to manage risk while unlocking greater opportunities, said Mr Chartsiri. Regarding the recent suspension of Prime Minister Paetongtarn Shinawatra by the Constitutional Court, he said it is unlikely to significantly impact the government's operations. The cabinet is expected to continue functioning as usual and House dissolution is not anticipated. BBL plans to monitor the political situation, said Mr Chartsiri. Pandu Sjahrir, chief investment officer of Indonesia's sovereign wealth fund Daya Anagata Nusantara, said during the forum trade and investment between Thailand and Indonesia have grown steadily in recent years. As of the first quarter of 2025, Thailand's cumulative investment in Indonesia tallied $1.4 billion, with key contributions from the chemical and pharmaceutical, rubber and plastics, mining, food, automotive and transport sectors. Foreign direct investment by Thai investors in Indonesia, particularly in the chemical, renewable energy and automotive sectors, supported the country's sustainable growth and green transformation, he said. Major contributors include Thai corporations such as PTT Global Chemical, Ratch Group, Egco Group, SCG and Thai Summit Group. "Thailand is well-positioned to support Indonesia's economic transformation through high-impact investments in critical sectors such as chemicals, renewable energy and infrastructure," Mr Pandu said. He said Indonesia is focusing on eight priority sectors: minerals (particularly nickel and bauxite), renewable energy (including upstream oil and renewable platforms), digital infrastructure (such as data centres), healthcare, financial services, utilities and infrastructure, industrial estates and property, as well as food and agriculture.
Bangkok Post
a day ago
- Business
- Bangkok Post
Bangkok Bank targets investment options in Indonesia
Bangkok Bank (BBL) sees significant business opportunities in Indonesia over the next two decades and says it is committed to supporting Thai businesses expanding into the country. Indonesia is one of the fastest-growing economies in the world, driven by government strategies, a large and youthful population of 284 million, and abundant natural resources. With these strong fundamentals, Indonesia's economy is expected to experience sustained growth over the next 20 years, said BBL president Chartsiri Sophonpanich during his visit to the bank's Indonesian branch, Permata Bank, last week. Under the Golden Indonesia Vision 2045, the country's GDP is projected to become the fourth-largest in the world. Indonesia has the 16th-largest economy with a GDP of US$1.54 trillion, and is the No.2 investment destination in Southeast Asia, attracting total foreign direct investment inflows of $105 billion. According to Permata Bank, in which BBL holds an 89.12% stake, Indonesia's GDP is projected to grow by 4.7% this year, down slightly from 5% in 2024. However, government agencies expect growth to rebound to 6.5% in 2026. Over the past decade, Indonesia's average annual GDP growth has been around 5%. He said Indonesia's recent entry into the BRICS group enhances its appeal as an investment destination, especially for businesses seeking to mitigate geopolitical risks amid global economic uncertainties. BRICS comprises 11 countries: Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran. "With Indonesia's positive growth outlook over the next 20 years, the country presents significant opportunities for Thai businesses to expand their operations and investments. BBL is well-positioned to support local enterprises in their outbound expansion, leveraging the bank's 57 years of experience in the regional market," said Mr Chartsiri. The bank already supports major Thai corporations investing in Indonesia in energy, trading, retail and manufacturing. BBL plans to support more Thai small and medium-sized enterprises eager to expand into the Indonesian market. As Thailand's largest lender and the seventh-largest bank in Southeast Asia by total assets, BBL is equipped to support both outbound and inbound investments across the region, he said. In the first half of 2024, Thai investment in Indonesia reached $225 million. Between 2017 and 2022, Thai investors contributed $1.52 billion across more than 1,400 projects in Indonesia. Indonesia remains a strategic trading partner for Thailand, with Thai exports valued at $10.3 billion in 2024. Thailand was Indonesia's fourth-largest export market, with exports to Thailand totalling $7.22 billion. Despite sluggish Thai economic growth, Mr Chartsiri said international banking will remain a driver of the bank's expansion, helping to strengthen its position as a leading regional bank.
Bangkok Post
a day ago
- Business
- Bangkok Post
BBL targets investment options in Indonesia
Bangkok Bank (BBL) sees significant business opportunities in Indonesia over the next two decades and says it is committed to supporting Thai businesses expanding into the country. Indonesia is one of the fastest-growing economies in the world, driven by government strategies, a large and youthful population of 284 million, and abundant natural resources. With these strong fundamentals, Indonesia's economy is expected to experience sustained growth over the next 20 years, said BBL president Chartsiri Sophonpanich during his visit to the bank's Indonesian branch, Permata Bank, last week. Under the Golden Indonesia Vision 2045, the country's GDP is projected to become the fourth-largest in the world. Indonesia has the 16th-largest economy with a GDP of US$1.54 trillion, and is the No.2 investment destination in Southeast Asia, attracting total foreign direct investment inflows of $105 billion. According to Permata Bank, in which BBL holds an 89.12% stake, Indonesia's GDP is projected to grow by 4.7% this year, down slightly from 5% in 2024. However, government agencies expect growth to rebound to 6.5% in 2026. Over the past decade, Indonesia's average annual GDP growth has been around 5%. He said Indonesia's recent entry into the BRICS group enhances its appeal as an investment destination, especially for businesses seeking to mitigate geopolitical risks amid global economic uncertainties. BRICS comprises 11 countries: Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran. "With Indonesia's positive growth outlook over the next 20 years, the country presents significant opportunities for Thai businesses to expand their operations and investments. BBL is well-positioned to support local enterprises in their outbound expansion, leveraging the bank's 57 years of experience in the regional market," said Mr Chartsiri. The bank already supports major Thai corporations investing in Indonesia in energy, trading, retail and manufacturing. BBL plans to support more Thai small and medium-sized enterprises eager to expand into the Indonesian market. As Thailand's largest lender and the seventh-largest bank in Southeast Asia by total assets, BBL is equipped to support both outbound and inbound investments across the region, he said. In the first half of 2024, Thai investment in Indonesia reached $225 million. Between 2017 and 2022, Thai investors contributed $1.52 billion across more than 1,400 projects in Indonesia. Indonesia remains a strategic trading partner for Thailand, with Thai exports valued at $10.3 billion in 2024. Thailand was Indonesia's fourth-largest export market, with exports to Thailand totalling $7.22 billion. Despite sluggish Thai economic growth, Mr Chartsiri said international banking will remain a driver of the bank's expansion, helping to strengthen its position as a leading regional bank.
Business Times
2 days ago
- Business
- Business Times
Indonesia's exports rally in May boosts trade surplus, but US tariff risks still loom
[JAKARTA] Indonesia's exports rebounded in May after a lacklustre April, giving the country's trade surplus a shot in the arm. But while the recovery offers a glimmer of hope, analysts note that dark clouds remain on the horizon amid lingering uncertainty around the United States' tariffs. Data released by the Indonesian statistics agency on Tuesday (Jul 1) showed that exports surged 9.68 per cent year on year (yoy) in May, far exceeding the 0.4 per cent rise expected in a Reuters poll. The recovery was powered by strong shipments of palm oil, basic metals, jewellery, semiconductors and organic base chemicals, said the agency's deputy of statistics, Pudji Ismartini. The export surge pushed the country's trade surplus to US$4.3 billion in May, a dramatic turnaround from just US$160 million the month before. Indonesia's exports of iron and steel to China rose by 31.56 per cent, even as looming US tariff threats clouded the trade outlook. Still, analysts believe the rebound may prove fragile. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up ' US tariffs on Chinese goods, though reduced to 30%, are still elevated compared to pre-trade war levels. This continues to weigh on global demand and Indonesia's exports, particularly as commodity prices soften and China's economic slowdown persists. ' — Josua Pardede, chief economist at Permata Bank While US-China trade tensions have eased following a recent agreement, uncertainty continues to hang over several countries, including Indonesia, as US President Donald Trump's Jul 9 deadline on tariff reviews approaches. The US has signalled that extensions are unlikely, raising concerns over possible new duties. 'Despite the easing tensions, Indonesia continues to face external headwinds,' said Josua Pardede, chief economist at Permata Bank. 'US tariffs on Chinese goods, though reduced to 30 per cent, are still elevated compared to pre-trade war levels. This continues to weigh on global demand and Indonesia's exports, particularly as commodity prices soften and China's economic slowdown persists.' South-east Asia's largest economy faces steep tariffs of 32 per cent under Trump's trade measures. Radhika Rao, senior economist at DBS, said that the strong exports in May likely reflected the continued front-loading of demand ahead of the July deadline, with shipments to the US, in particular, growing by double digits. Indonesia's shipments of machinery and electronic equipment to the US rose by 18 per cent between January and May, while its imports of mechanical machinery and equipment from China increased 22.9 per cent over the same period. 'Imports from China have also risen, suggesting rerouting of exports through the region to take advantage of the tariff differential,' Radhika said. Indonesia's imports grew 4.14 per cent yoy, though they edged down by 1.32 per cent on a monthly basis, cooling off after a notable spike in April. One of the biggest drops came from precious metals, with imports plunging 78.39 per cent month on month. This likely reflected waning gold appetite in May as trade tensions began to ease. Weaker domestic demand is helping to contain import growth, preserving a healthy trade surplus, Pardede said. Meanwhile, falling oil prices amid de-escalation in the Middle East are also providing some relief to the country's external balance. Indonesia's exports of crude and refined palm oil soared 53 per cent yoy in May, reaching 1.88 million tonnes, driven by strong demand from India. Inflation remains on target On the inflation front, consumer prices crept up by 1.87 per cent yoy in June, snapping back after a brief dip into deflation in May, official data indicated. Volatile food inflation spiked, driven by a jump in prices of household staples such as shallots, rice, tomatoes, and bird's eye chillies. Annual headline consumer price index (CPI) inflation picked up pace in June, rising to 1.87 per cent yoy from 1.6 per cent in May. Meanwhile, core CPI inflation held steady, falling slightly to 2.37 per cent yoy from 2.4 per cent the previous month. Administered price inflation crept up, fuelled mostly by higher airfares during the school holiday rush, though this was tempered by a drop in non-subsidised fuel prices after official price tweaks. Pardede noted that inflation is expected to stay within Bank Indonesia's target range of 1.5 to 3.5 per cent until the end of 2025. He said the impact of rupiah depreciation on inflation, or imported inflation, is gradually fading as global uncertainties ease. 'Risks tied to the 'trade war 2.0', especially reciprocal tariffs, have eased following the US-China trade agreement, encouraging capital inflows. This has helped soften the risk of inflation passing through from producers to consumers.'
