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The article focuses on five countries that are emerging as important connectors of the global economy. Topics discussed include Vietnam's rising greenfield investment, exports to the U.S. and imports from China, the proliferation of battery plants in Poland for the electric vehicle (EV) industry, and how Morocco's EV battery supply chain is benefiting from free-trade agreements between the U.S. and other countries.

Indonesia has blocked the sale of Apple's iPhone 16 in the country due to the company's failure to meet local investment requirements. Apple's older products can still be sold in Indonesia, but the iPhone 16 cannot be marketed domestically. The government has imposed a 40% domestic content requirement for smartphones and tablets, which Apple has not fulfilled. Other phone makers like Samsung and Xiaomi have set up factories in Indonesia to comply with these regulations. [Extracted from the article]

Indonesia has blocked Apple from selling the iPhone 16 in the country due to the company's failure to meet local investment requirements. The Ministry of Industry stated that Apple's local unit did not fulfill the 40% local content requirements for smartphones. This decision poses a challenge for Apple, as Indonesia is a significant market with a high number of active mobile phones. Apple has invested below its commitment in Indonesia, leading to restrictions on the sale of iPhone 16 units in the country. [Extracted from the article]

Indonesia has expressed interest in joining the BRICS group, which includes Brazil, Russia, India, China, and South Africa, as a way to advance the interests of the Global South. This move is seen as a manifestation of Indonesia's free and active foreign policy under the new government led by President Prabowo Subianto. Indonesia's solidarity with Palestine and Lebanon was also highlighted at the BRICS Plus Summit, reflecting the country's concern for global issues, particularly in the Middle East. Indonesia's engagement with other multilateral groups, such as the Group of 20 and the Organisation for Economic Co-operation and Development, demonstrates its commitment to participating in various international forums. [Extracted from the article]

Indonesia's Maritime Security Agency intercepted and drove out a China Coast Guard ship that entered Indonesian territory, disrupting survey activities near the Natuna Islands in the South China Sea. This incident highlights the ongoing territorial disputes in the region, with China claiming the area as part of its jurisdiction. The Indonesian government, under new President Prabowo Subianto, is seeking to maintain a non-aligned stance in foreign policy while asserting its sovereignty over the North Natuna Sea. China has stated its willingness to engage in diplomatic channels to address maritime issues with Indonesia. [Extracted from the article]

Indonesia's Maritime Security Agency intercepted and drove out a China Coast Guard ship that entered Indonesian territory, disrupting survey activities near the Natuna Islands in the South China Sea. This incident highlights the ongoing territorial disputes in the region, with Indonesia asserting its exclusive economic zone against China's claims. The new Indonesian President, Prabowo Subianto, faces an early foreign policy test as he aims to maintain a non-aligned stance and prioritize national interests. China's expansive claims in the South China Sea have led to tensions with neighboring countries like Indonesia, prompting increased patrols and surveillance efforts in the region. [Extracted from the article]

Indonesia successfully drove out a China Coast Guard vessel from a disputed area in the South China Sea, where Indonesia's state-run oil and gas company was conducting survey activities. The incident occurred near the Natuna Islands, within Indonesia's exclusive economic zone, despite China's claim over the entire South China Sea. President Prabowo Subianto, known for Indonesia's non-aligned foreign policy, is expected to visit Beijing soon. Indonesian authorities, with the help of navy and patrol aircraft, were able to ensure the Chinese vessel left the area, asserting Indonesia's sovereignty. [Extracted from the article]

Indonesia successfully expelled a China Coast Guard vessel from a disputed area in the South China Sea, where Indonesia's state-run oil and gas company was conducting survey activities. The incident occurred near the Natuna Islands, within Indonesia's exclusive economic zone, despite China's claim over the region based on the "nine-dash line." Indonesian authorities, with the support of their Navy and patrol aircraft, managed to escort the Chinese vessel out of the North Natuna Sea to protect their sovereignty and rights. Bakamla, Indonesia's Maritime Security Agency, pledged to continue monitoring the area to ensure the safety of ongoing activities and uphold Indonesia's territorial integrity. [Extracted from the article]

Holywings Group, the owner of Bali's Atlas Beach Club, is considering an IPO to expand its entertainment empire across Asia, starting with a new club in Bangkok in 2025. The company, which currently operates over 50 bars and restaurants in Indonesia, aims to increase its establishments to more than 80 by 2025, with plans to expand into Kuala Lumpur, Seoul, and Taipei. Despite Indonesia's large Muslim population, Holywings has seen rapid growth since its humble beginnings as a fried rice stall in Jakarta, and is now looking to diversify and grow internationally. [Extracted from the article]

Indonesia's incoming President, Prabowo Subianto, has set a target of achieving 8% annual GDP growth. Arsjad Rasjid, the chairman of the Indonesian Chamber of Commerce and Industry, believes this target is achievable but emphasizes the need for policy reform and investment in state-owned enterprises. Rasjid also highlights the importance of the private sector in fueling economic growth. The country's largest economy is undergoing a leadership change, with Prabowo set to be sworn in on October 20, and he aims to continue the push for refining Indonesian commodities onshore and transitioning to green energy. [Extracted from the article]

Indonesia's incoming President, Prabowo Subianto, has set a target of achieving 8% annual GDP growth. However, the chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid, believes that in order to reach this goal, the country needs to reform its state-owned enterprises and attract more investment. Rasjid emphasizes the importance of the private sector in fueling growth and suggests that state-owned companies should become more competitive and efficient. The current president, Joko Widodo, has overseen a decade of steady 5% economic growth and increased foreign investment, but Prabowo aims to further boost growth and promote the nation's green energy transition. [Extracted from the article]

Bank Indonesia surprised markets by cutting interest rates ahead of the Federal Reserve, and analysts expect further rate cuts at a slower pace than in the US. The central bank may cut borrowing costs again in October if the currency strengthens. However, Governor Perry Warjiyo's statement suggests that BI may not pursue deeper rate cuts than the US, which could put rupiah gains at risk. Despite concerns over the economic outlook, BI maintains its forecast for GDP growth above 5% through next year. Economists have varying predictions for future rate cuts, with some expecting two cuts in the fourth quarter of this year and another in the first quarter of 2025. [Extracted from the article]

The provincial government of Bali is proposing a two-year ban on the construction of new hotels, villas, discos, and beach clubs in order to address issues of land development and overcrowding on the island. The ban would apply to popular tourist areas such as Canggu, Seminyak, Uluwatu, and Ubud. The plan has been submitted to the Coordinating Ministry for Maritime and Investment Affairs, which has shown support for the idea. The Acting Governor of Bali, Sang Made Mahendra Jaya, has cited the conversion of rice fields into commercial land and unregulated alcohol sales as contributing factors to the need for the ban. [Extracted from the article]

Recent protests in Indonesia have highlighted the desire of the people to protect their democracy, according to former President Susilo Bambang Yudhoyono. The protests successfully prevented changes to electoral laws that were seen as a power grab by the country's largest parties. There are concerns about democratic backsliding and dynastic politics in Indonesia, but Yudhoyono believes that the country's democracy is still evolving and can be made more relevant to the aspirations of the people. He also expressed confidence in the smooth transition of power from outgoing President Joko Widodo to his successor, Prabowo Subianto, who will have time to prepare and continue the economic achievements of his predecessor. Yudhoyono also emphasized the importance of building human capital alongside infrastructure development for the country's economic growth. He believes that Prabowo, as a former military officer and the nation's defense minister, will be able to effectively manage Indonesia's positioning in the face of US-China tensions and disputes in the South China Sea. As a regional power and member of the G-20, Indonesia should have a say in dealing with regional problems. [Extracted from the article]

Recent protests in Indonesia have highlighted the desire of the people to protect their democracy, according to former President Susilo Bambang Yudhoyono. The protests successfully prevented changes to electoral laws that were seen as a power grab by the country's largest parties. There are concerns about democratic backsliding and dynastic politics in Indonesia, but Yudhoyono believes that the country's democracy is still evolving and can be made more relevant to the aspirations of the people. He expressed confidence in a smooth transition of power from outgoing President Joko Widodo to his successor, Prabowo Subianto, who is expected to continue the economic achievements of his predecessor while focusing on human capital development. [Extracted from the article]

Indonesia is aiming to sign $3.5 billion in trade and investment agreements with Africa at the Indonesia-Africa Forum. This is a significant increase from the $600 million in deals signed in 2018. The agreements include collaborations in geothermal energy, health technology transfer, and aircraft purchases. Indonesia is seeking to diversify its trade partners beyond China, the US, and Japan, and sees potential in fast-growing African markets such as Kenya, Nigeria, South Africa, and Egypt. Additionally, Indonesia is exploring partnerships with Africa to utilize its vast reserves of nickel for battery production. [Extracted from the article]

Indonesia is aiming to sign $3.5 billion in trade and investment agreements with Africa during the ongoing Indonesia-Africa Forum in Bali. This is a significant increase from the $600 million in deals signed in 2018. The agreements will cover various sectors, including gas, health, agriculture, and vaccines. Indonesia is looking to diversify its trade partners beyond China, the US, and Japan, and sees Africa as a promising market due to its fast-growing populations. Additionally, Indonesia is exploring opportunities to collaborate with Africa in the production of batteries, as it seeks to become a hub for battery production using its nickel reserves. The diplomat emphasizes the importance of Global South countries working together in the face of geopolitical tensions and trade battles. [Extracted from the article]

President-elect Prabowo Subianto plans to implement a free school lunch program in Indonesia to address stunting rates and improve academic performance. He is looking to China and India as examples of successful school feeding programs. Studies have shown that such programs can lead to improved test scores and physical growth in children. However, there are challenges to consider, such as ensuring the safety of the program and maintaining political commitment. Some experts argue that focusing on education improvement may be more beneficial in the long term. [Extracted from the article]

Governments in Southeast Asia, including Thailand, Malaysia, and Indonesia, are facing budget pressures that are leading them to reconsider fuel subsidies. Rising global crude prices have prompted Thailand and Malaysia to increase diesel prices, while Indonesia is considering rationalizing fuel subsidies to allocate funds for stimulus programs. However, these moves have been met with resistance from citizens concerned about potential price increases for basic necessities. While reducing fuel subsidies is necessary to address inflation and maintain investment-grade ratings, it also poses political challenges for policymakers. The potential fiscal benefits are significant, but the removal of subsidies may result in higher energy prices and impact inflation rates. [Extracted from the article]

Dutch dairy producer Royal FrieslandCampina NV will collaborate with the incoming government of Indonesia to pilot a free lunch program in 10 schools in Cikarang. The program, a key campaign promise of President-elect Prabowo Subianto, aims to provide free lunches to nearly 83 million school children in an effort to improve their health outcomes and create opportunities for local businesses. FrieslandCampina's newly inaugurated Cikarang plant is prepared to meet the demand for the program, with the capacity to produce 700 million kilograms of dairy products annually. The company also plans to expand its supply of raw materials from smallholder farmers. [Extracted from the article]

According to a report by S&P Global, Taiwan and South Korea experienced their highest manufacturing activity in two years in June. Taiwan's purchasing managers' index (PMI) reached 53.2, indicating expansion, with increased demand both domestically and internationally. South Korea's PMI climbed to 52, also its highest in two years, with export orders from Asian, European, and North American clients boosting its manufacturing sector. Despite a patchy recovery in China, other Asian countries such as Vietnam, the Philippines, Thailand, and Indonesia also sustained growth in manufacturing activity. However, Japan remained steady, Malaysia dipped slightly into contraction territory, and Australia experienced its fifth straight monthly contraction. The rebound in Asia's manufacturing sector is expected to alleviate some of the concerns over the global economy amid a renewed trade war. However, rising inflationary pressures and increased production costs may pose risks in the second half of the year. [Extracted from the article]

Taiwan and South Korea experienced a significant increase in manufacturing activity in June, with both countries achieving their highest results in two years. Taiwan's PMI reached 53.2, indicating expansion, due to improved demand in domestic and international sales, particularly in the semiconductor industry. South Korea's PMI climbed to 52, also its highest in two years, with export orders from Asian, European, and North American clients contributing to the growth. Vietnam, the Philippines, Thailand, and Indonesia also sustained their manufacturing activity, while China's factory activity remained in contraction territory. The rebound in Asia's manufacturing sector is expected to alleviate concerns about the global economy amidst a trade war and potential tariff increases on Chinese exports. [Extracted from the article]

Singapore is expecting a budget surplus in the upcoming fiscal year, thanks to recent tax increases that have boosted revenue. The surplus is projected to be around S$800 million, or 0.1% of GDP. Finance Minister Lawrence Wong announced this surplus in his budget speech, along with several new measures aimed at supporting individuals and companies and stimulating economic growth. The government plans to court high-value foreign investments to spur innovation and job creation, and expects growth in 2024 to be in the range of 1%-3%. The budget also includes increased social support measures, such as additional vouchers for households and tax rebates for middle-income workers. [Extracted from the article]

Singapore's budget is expected to have a surplus in the upcoming fiscal year, thanks to recent tax increases that have boosted revenue. The surplus is projected to be around S$800 million, or 0.1% of GDP. The government has widened its deficit estimate for the current fiscal year to 0.5% of GDP. The increase in taxes, including the goods and services tax, has helped replenish state coffers and allowed for increased social assistance measures. The Finance Minister has proposed new measures to support individuals and companies and aims to boost economic growth. The government plans to provide cash and subsidies to Singaporeans and households, as well as tax rebates for companies. The budget also includes investments in the financial sector, manufacturing, R&D, green transition, and AI development. The government aims to strengthen reserves and maintain fiscal prudence. [Extracted from the article]

The article presents brief profiles of six young people whose employment opportunities were impacted by the COVID-19 pandemic. It mentions the lack of employment prospects in countries including the Philippines, Brazil, and Ghana, the kinds of jobs that the young people are finding, and how they view their future.

Satria Sambijantoro, the head of research at PT Bahana Sekuritas, accurately predicted both of Bank Indonesia's recent interest-rate increases. He gained his forecasting skills while working as a reporter for The Jakarta Post, where he covered the central bank's media briefings and got to know its officials. Sambijantoro expects one more rate hike by the end of the year, despite Governor Perry Warjiyo's comments that the tightening cycle is likely done. He looks at unusual indicators, such as palm oil output, to chart Indonesia's interest-rate path. [Extracted from the article]

Elon Musk has launched SpaceX's Starlink internet services in Indonesia, aiming to improve connectivity in remote areas of the country. The inauguration took place in Bali, where Musk expressed his excitement about bringing internet access to villages with limited or no connectivity. The Indonesian government hopes that Starlink will not only connect remote provinces but also enhance education and healthcare outcomes. Musk also hinted at the possibility of his other companies investing in Indonesia in the future. Indonesian President Joko Widodo, who has been actively seeking foreign investment, was not present at the inauguration. [Extracted from the article]

Elon Musk has arrived in Indonesia to launch SpaceX's Starlink internet services, aiming to improve connectivity in the country's remote areas. Musk will inaugurate Starlink with Indonesian President Joko Widodo at a community health center. The Indonesian government hopes that Starlink, which provides broadband internet through SpaceX's satellites, will enhance education and healthcare services in the nation's provinces. Indonesia is also in talks with Tesla to invest in its battery industry, and Starlink plans to test its services in Indonesia's new capital city, Nusantara. [Extracted from the article]

Fitch Ratings has warned that Prabowo Subianto's plan to create a new state revenue agency outside of Indonesia's finance ministry could have negative consequences for tax collection. Fitch Ratings' head of Asia-Pacific Sovereigns, Thomas Rookmaaker, stated that it is unclear how this plan would improve long-term revenue collection and that it may lead to operational issues and uncertainty. Fitch suggests that the government should focus on removing tax exemptions and increasing compliance to boost revenue instead. Indonesia has struggled to raise earnings that match its economy's size, and Fitch expects state revenue to decline this year. Any disruption to tax receipts could impact Prabowo's planned spending, including a program to provide free lunch and milk for school children. The incoming president aims to increase the tax-to-GDP ratio to 16% during his tenure, but Fitch warns that this will be challenging without raising taxes or introducing new ones. Additionally, Indonesia needs to monitor its external finances, particularly the current-account deficit, as commodity prices normalize. Foreign direct investments have not yet shown the benefits of shifting supply chains, despite government efforts to attract companies to set up nickel smelters and battery assembly plants onshore. [Extracted from the article]

Fitch Ratings has warned that Prabowo Subianto's plan to create a new state revenue agency outside of Indonesia's finance ministry may harm the country's tax collection efforts. Fitch Ratings' head of Asia-Pacific Sovereigns, Thomas Rookmaaker, stated that it is unclear how this plan would improve long-term revenue collection and that it could lead to operational issues and uncertainty. Fitch suggests that the government should focus on removing tax exemptions and increasing compliance to boost revenue instead. Indonesia has struggled to raise earnings that match its economy's size, and any disruption to tax receipts could impact Prabowo's planned spending initiatives. However, Prabowo has promised not to raise tax rates while aiming to increase the tax-to-GDP ratio to 16% during his tenure. [Extracted from the article]

Philippine billionaire Enrique Razon's International Container Terminal Services Inc. (ICTSI) is pursuing four new port deals, including opportunities in West Africa, Central America, and Cambodia. Despite trade disruptions and geopolitical conflicts, ICTSI remains undeterred and has ample cashflow to fund these acquisitions. The company's focus on emerging markets with higher growth potential has contributed to its strong financial performance, with net income growing 36% in the first quarter of the year. ICTSI's stock price has also surged, reflecting shareholders' confidence in the company's strategy. [Extracted from the article]

Taiwan's factory activity has expanded for the first time in two years, indicating a rebound in Asia's manufacturing sector. The country's manufacturing purchasing managers' index reached 50.2 in April, its highest level since April 2022. Taiwan's output increased due to higher new orders and improved domestic demand, although overseas demand remained subdued. Other countries in North Asia, such as China and Japan, also showed signs of recovery, while South Korea experienced a slight decline. However, inflation and elevated costs of raw materials and logistics continue to pose risks to the region's turnaround. [Extracted from the article]

Taiwan's factory activity has expanded for the first time in two years, indicating a broader rebound in Asia. The manufacturing purchasing managers' index (PMI) for Taiwan reached 50.2 in April, up from 49.3 in March, marking its best result since April 2022. This growth was driven by higher new orders and improved demand from the domestic market. While cautious, companies in Taiwan are confident that growth will continue and have increased staffing levels. This positive trend in Taiwan's factory activity is part of a larger trend in Asia, with China and Japan also showing signs of recovery, while South Korea experienced a slight decline. [Extracted from the article]

Thailand and Vietnam are facing challenges in their export sectors, which could further weaken their currencies. Thailand's outbound shipments contracted by 11% in March, while Vietnam's exports only rose by 10.6% in April, below expectations. This could lead to continued currency weakness for both countries, especially as demand for goods remains low due to inflation and lackluster economic growth in key markets. Both countries are also experiencing trade deficits, which limits their ability to replenish their foreign-exchange reserves. However, Thailand's tourism rebound may help offset its trade deficit. [Extracted from the article]

According to a recent review by the Monetary Authority of Singapore (MAS), escalating tensions in the Middle East and the risk of delayed global interest rate easing could pose threats to Singapore's economic rebound this year. The MAS expects the US Federal Reserve to start lowering borrowing costs in the third quarter, which, combined with a recovery in global chip sales, could help power Singapore's GDP growth. However, the MAS also warns of lingering risks from higher global interest rates and capital flow volatility, as well as the potential for geopolitical conflicts to increase financial market stress and uncertainty. Singapore's policymakers have affirmed their estimate for inflation to average 2.5%-3.5% this year, but they will continue to monitor evolving risks and maintain tight monetary policy to ensure medium-term price stability. The first quarter of 2024 saw slower-than-forecasted economic expansion in Singapore, highlighting the government's concerns about prolonged slow growth. [Extracted from the article]

Investors are closely watching Asian countries for potential policy changes in response to the strengthening US dollar. Indonesia's surprise interest rate hike to defend the rupiah has put other central banks in the region on alert. The currencies of Japan, South Korea, Thailand, Taiwan, Malaysia, the Philippines, and India are all trading near multi-year lows, increasing the likelihood of more aggressive actions to stabilize their currencies. Central banks in Asia face the difficult choice of dampening economic growth or protecting their exchange rates. The prospect of higher US interest rates relative to Asia may lead to a withdrawal of global funds from the region and further depreciation of local currencies. Some countries, such as India, Thailand, and Indonesia, are already experiencing net fixed income withdrawals. Central banks may resort to intervention rather than interest rate adjustments as their first response to currency depreciation, especially if inflation remains under control. [Extracted from the article]

Indonesia's recent surprise rate hike may not be the last, according to economists. The country's currency remains vulnerable due to uncertainties surrounding the Federal Reserve's rate path and geopolitical tensions. The rate hike, combined with measures to boost lenders' liquidity, could potentially impair the effectiveness of the central bank's policies. Economists suggest that further rate hikes cannot be ruled out if the Indonesian rupiah depreciates further. [Extracted from the article]

Bank Indonesia surprised economists by raising its benchmark interest rate to a record high of 6.25% in an effort to stabilize the rupiah against the dollar. The rate hike is aimed at guiding the rupiah below 16,000 against the dollar by the end of the year. The central bank also plans to increase its foreign exchange interventions and allow money-market rates to rise to attract more foreign inflows. The rupiah has lost nearly 5% against the dollar this year, and Bank Indonesia expects it to stabilize around 16,200 in the second quarter and strengthen to an average of 16,000 in the third quarter. [Extracted from the article]

Bank Indonesia has raised its benchmark interest rate to a record high of 6.25% in an effort to support the rupiah, which has reached pandemic-era lows. The decision was unexpected, as only 11 out of 41 economists surveyed predicted the rate hike. The central bank aims to stabilize the rupiah and manage inflation, as a weaker currency could lead to higher import costs and inflation. The move may influence other central banks in Asia that are also facing currency depreciation and geopolitical tensions. While the rupiah initially gained after the decision, it remains one of the worst-performing currencies in the region. Bank Indonesia has emphasized its commitment to supporting the currency in the coming months, but this rate hike is not indicative of a prolonged tightening cycle. The central bank expects the economy to grow between 4.7% and 5.5% in 2024. [Extracted from the article]

Bank Indonesia has raised its benchmark interest rate to a record high of 6.25% in an effort to support the rupiah, which has reached pandemic-era lows. The decision was made due to evolving external risks, including uncertainties surrounding the Federal Reserve's anticipated monetary easing and rising geopolitical tensions in the Middle East. The rate hike aims to stabilize the rupiah, which has lost nearly 5% against the dollar this year. While inflation has remained within the central bank's target range, a weaker rupiah could potentially lead to higher inflation by increasing the cost of imports. Bank Indonesia is confident that inflation will stay within target this year and the next. The rupiah's recent weakness has prompted the central bank to intervene in the spot and derivatives markets and offer incentives to attract foreign inflows. The nation's foreign exchange reserves are deemed sufficient to support the stabilization of the rupiah. Economists predict that Bank Indonesia's plans to ease monetary policy may be delayed until the end of the year or even 2025 due to ongoing currency volatility. [Extracted from the article]

Investors are closely watching Asia for signs of further policy changes after Indonesia unexpectedly raised interest rates to defend its currency, the rupiah. The currencies of several Asian countries, including Japan, South Korea, Thailand, Taiwan, Malaysia, the Philippines, and India, are trading near multi-year lows, increasing the likelihood of more decisive action by local authorities. The recent rate hike by Indonesia highlights the difficult position faced by central banks in the region as they try to balance economic growth with the protection of exchange rates. The prospect of higher US interest rates and a stronger dollar is causing concern among central bankers in Asia. [Extracted from the article]

Bank Indonesia has intervened in the currency market to stabilize the rupiah, which fell to a four-year low due to a strong dollar and bond outflows. The currency recovered slightly but remains weak. Factors contributing to the rupiah's weakness include the depreciation of the yuan, strong dollar demand for dividend repatriation, foreign outflows in the bond market, and above-expectation inflation data. Concerns have also arisen about President-elect Prabowo Subianto's spending plans and their impact on the country's budget deficit and credit ratings. If the rupiah remains around the 16,000 level, Bank Indonesia may consider raising its benchmark interest rate. [Extracted from the article]

Bank Indonesia has intervened in the currency market to stabilize the rupiah, which fell to a four-year low due to a strong dollar and bond outflows. The currency recovered slightly but remains weak due to factors such as the depreciation of the yuan, high inflation, and concerns about the country's budget deficit. There are speculations that Bank Indonesia may raise interest rates if the rupiah continues to stay around the 16,000 level. The decline of the rupiah is part of a broader trend in Asia, with other countries also taking measures to support their currencies. [Extracted from the article]