News

Indonesia posted a $3.45 billion trade surplus as imports saw a double-digit decline, according to the National Statistics Agency (BPS). This makes it the 38th consecutive month that Indonesia booked a trade surplus since May 2020. Trade with India, the US, and the Philippines became the biggest contributors to the surplus. Indonesia saw its largest surplus in the non-oil and gas sector with India, reaching $1.24 billion last month. Animal fats and oil, mineral fuels, as well as precious metals, jewelry, and gems mostly spurred the surplus with New Delhi. Indonesia’s surplus with the US and the Philippines reached $1.19 billion and $827 million, respectively.   Source : https://jakartaglobe.id/business/indonesia-books-trade-surplus-for-38-months-in-a-row

Vietnam's economy grew 4.14% in the April-June period from the same time a year earlier, according to an official estimate released on Thursday, picking up from an expansion of 3.3% in the first quarter but still slower than the pace of previous upswings as export demand loses steam. One of Asia's fastest-growing economies, Vietnam's gross domestic product grew around 6% to 7% annually before COVID-19. It also climbed 8% in 2022 as it recovered from a COVID-driven slump. Its GDP expansion slowed this year due to faltering overseas demand for goods such as apparel and electronics, which come from Vietnam's core manufacturing sector. The number of foreign tourists in June reached about 1 million, a fourfold increase over the same month last year but around 70% of pre-COVID levels.   Source : https://asia.nikkei.com/Economy/Vietnam-Q2-growth-picks-up-to-4.14-but-remains-lackluster

China’s factory-gate prices fell at the fastest pace in over seven-and-a-half years, while consumer inflation was at its slowest since 2021, adding to the case for policymakers to use more stimulus to revive sluggish demand. Factory gate price is the price of the product available at the factory, excluding any separately billed transport or delivery charge. Meanwhile, the producer price index (PPI) fell for a ninth consecutive month, down 5.4% from a year earlier, marking the steepest decline since December 2015.   Source : https://edition.cnn.com/2023/07/10/economy/china-prices-june-decline-hnk-intl/index.html

Motorcycle sales in Indonesia experienced a significant increase in May 2023. Not only that, but motorcycle exports also showed a remarkable surge. According to data from the Indonesian Motorcycle Industry Association (AISI), Indonesian-made motorcycle exports reached 55,743 units in May, which is a 35% increase compared to April 2023 when 41,201 units were exported. However, the total exports from January to May 2023, which reached 218,802 units, were still lower than the same period last year, which recorded 274,929 units. It is worth noting that scooters accounted for the largest share of motorcycle exports during January to May 2023, reaching 54.04%. On the other hand, underbone motorcycles accounted for 21.06%, while sport motorcycles accounted for approximately 24.90%. Source : https://amp.kompas.com/otomotif/read/2023/06/12/170100615/ekspor-motor-buatan-indonesia-naik-35-persen

Indonesia's foreign direct investment (FDI) could go up to 1.4 percent of its gross domestic product, or GDP, in 2025, according to a recent report by the World Bank. The World Bank attributed this uptick to the job creation law and the government's industrial downstreaming strategy of processing raw minerals at home for greater added value.   Source : https://jakartaglobe.id/business/indonesias-fdi-to-hit-14-pct-of-gdp-in-2025-world-bank

Indonesia experienced a slight trade surplus of US$0.44 billion in May 2023, indicating a surplus for 37 consecutive months since May 2020, according to Statistics Indonesia (BPS). The amount is also lower than the surplus of US$2.9 billion recorded in May 2022. BPS also noted that Indonesia's export value in May 2023 had reached US$21.72 billion, increasing by 12.61 percent month-to-month. It also rose by 0.96 percent compared to May 2022. Furthermore, Indonesia's import value had reached US$21.28 billion in May 2023, up by 38.65 percent compared to the imports recorded in April 2023. Additionally, it increased by 14.35 percent year-on-year.

US-based company SEG Solar Inc and ATW Group plan to build a USD 500 million solar panel and module factory in the Batang Integrated Industrial Estate  (KITB), Central Java, following the signing of a pre-cooperation agreement in Washington DC. "This collaboration is the Indonesian government's attempt to support the energy transition and initiate a more open partnership between us and the government of the United States," said Investment Minister/ Investment Coordinating Board (BKPM) head Bahlil Lahadalia. According to Minister Bahlil, the collaboration between SEG Solar and ATW Group is important to avoid the perception that Indonesia only accepts investments from certain countries and to capitalize on the US Inflation Reduction Act (IRA). The act apparently helps accelerate US investments in electric vehicle ecosystems around the globe, including Indonesia. That was why, Bahlil visited the US and tried to convince investors there to put their money into projects in Indonesia, especially export-oriented ones. To build a solar panel and module factory with a total capacity of 5 gigawatts (GW), SEG Solar and ATW Group formed a joint venture. The construction of the factory, capable of providing jobs for up to 2,000 people, is expected to start next year. The demand for solar panels and modules will keep on rising increase along with the global energy transition. Solar power plants are preferred by many because they are easy to build. In Indonesia alone, there are plans by its government to erect 420 GW of solar power plants (PLTS) by 2060.   Source : https://dinsights.katadata.co.id/read/2023/06/26/seg-solar-atw-group-to-build-us500-mln-solar-panel-factory-in-batang

A survey by CNBC and Morning Consult found 92% of Americans are pulling back spending. It’s further evidence of what retailers like Walmart, Target, Home Depot and Best Buy called out as cautious consumer-spending shifts during the first quarter. Among the hardest-hit categories by inflation-fueled spending cuts, clothing came in as the No. 1 nonessential category where consumers have cut back. Shoppers continue to report inflation squeezing their finances, with concerns particularly heightened among middle-income Americans. Of the survey respondents, 92% of middle-income Americans — or those who make between $50,000 and $100,000 a year — reported being “somewhat” or “very” worried about higher prices.   Source : Cnbc