Indonesia to ease import restrictions on goods ahead of U.S. tariff deadline
While Indonesia is Southeast Asia's largest economy, traders have historically complained about excessive red tape. The matter was also highlighted in a recent report by the U.S. Trade Representative on foreign trade barriers.
Coordinating Minister for Economic Affairs Airlangga Hartarto, speaking at an event, said the policy actions would affect 10 groups of commodities.
Indonesia Trade Minister Budi Santoso said restrictions would be eased on a number of products including those in the categories of fertilizers, forestry and plastics. He said the new policy would create more certainty for businesses by eliminating overlapping rules.
The easing of import requirements and restrictions will also help industry players who have been asking for an easier way to import raw materials, Indonesia Deputy Industry Minister Faisol Reza told a press conference.
The Trump administration imposed a 32% tariff on Indonesian goods in his drive to end U.S. trade deficits with countries worldwide. The U.S. goods trade deficit with Indonesia was $17.9 billion in 2024, according to the U.S. Trade Representative.
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The Guardian
5 hours ago
- The Guardian
Thailand's PM Paetongtarn Shinawatra suspended over leaked Hun Sen call
Thailand's constitutional court has suspended the prime minister, Paetongtarn Shinawatra, while it investigates alleged ethical violations relating to a leaked phone call. The court announced on Tuesday that it would consider a petition filed by 36 senators calling for Paetongtarn's dismissal, accusing her of dishonesty and breaching ethical standards in violation of the constitution. Paetongtarn has faced mounting pressure after a leaked recording of a phone conversation with Cambodia's powerful former leader Hun Sen, in which she discussed a border dispute between the two countries. In the call, she can be heard calling Hun Sen 'uncle' and saying that if there were anything he wanted, she would 'take care of it'. She also made critical remarks about a senior Thai military commander. The recording has caused public outrage, with critics accusing her of betraying her country and kowtowing to Cambodia. Hun Sen, who ruled Cambodia for almost four decades and remains powerful in the country, is known to have been an old friend of Paetongtarn's family, though relations have soured in recent weeks. Tuesday's decision is the latest blow for Paetongtarn, scion of the powerful but controversial Shinawatra family. She is clinging to power after a coalition partner quit her government earlier this month, leaving her with only a slim majority as a possible no-confidence vote looms. On Saturday 10,000 protesters gathered in Bangkok calling for her resignation, while an opinion poll released at the weekend showed her approval rating had fallen from 30.9% in March to 9.2%. Paetongtarn's father, Thaksin Shinawatra, the billionaire former leader, is also facing legal troubles, and appeared in court on Tuesday to face allegations that he breached the lese-majesty law. Under the law, any criticism of the royal family can lead to up to 15 years in prison. The case relates to a 2015 interview he gave to South Korean media. For two decades Thai politics has been dominated by a power struggle between the Shinawatras and their opponents in the conservative military royalist establishment. Thaksin was twice elected prime minister, but was ousted in a coup in 2006. His sister Yingluck Shinawatra was ousted by a court ruling followed by a coup in 2014. Paetongtarn told reporters at Bangkok's Government House that she accepted the ruling. 'It's always been my intention to do the best thing for my country,' she said. 'I'd like to apologise to Thai people who are frustrated about this.' She has previously described her comments in the call as a negotiating tactic. Thailand has a long-running border dispute with Cambodia that flared up in May when a Cambodian soldier was killed during a brief exchange of fire. The incident has led to a surge in nationalist sentiment and tit-for-tat actions by both governments. The deputy prime minister, Suriya Juangroongruangkit, will take over as a caretaker while the court decides the case against Paetongtarn.
Daily Mail
6 hours ago
- Daily Mail
Standard Chartered faces $2.7bn lawsuit over 1MDB scandal
Standard Chartered is facing a $2.7billion law suit over allegations of fraud related to the 1MDB Malaysian fund scandal. Claimants for the Malaysian sovereign wealth fund 1Malaysia Development Berhad have accused the Asia-focused banking giant of failing to conduct the necessary anti-money laundering checks. They accuse StanChart of allowing 100 intrabank transfers between 2009 and 2013 that helped obscure the flow of stolen funds despite several red flags indicating the money might be connected to illegal activity. Liquidators from financial services group Kroll filed the lawsuit in the High Court of Singapore on Monday. Kroll says it has identified over $2.7billion of illicit money that flowed through StanChart, including transfers to a bank account belonging to former Malaysian Prime Minister Najib Razak. It also stated that transfers involved business payments and Razak's wife and stepson receiving jewellery and luxury goods. Accusation: Standard Chartered is facing a $2.7billion legal case over allegations of fraud related to the 1MDB financial scandal. It has strenuously denied the claims Razak is currently serving a six-year prison term after being found guilty in 2020 of money laundering, criminal breach of trust, and abuse of power. 'According to this lawsuit, the transfers demonstrate serious breaches and control failings which ultimately enabled the theft of public funds by people operating at the highest levels of the Malaysian government during that period,' said the liquidators. StanChart has strenuously denied the claims, telling Reuters they are 'without merit' and that they will 'vigorously defend any lawsuit commenced by the liquidators'. The 1MDB scandal is often regarded as Malaysia's biggest ever political scandal and one of the worst global cases of financial kleptocracy. US authorities estimate that $4.5billion was looted from 1MDB, which was ostensibly set up to promote the development of Malaysia, but ended up funding the purchase of luxury houses, artwork, a private jet and even the film 'The Wolf of Wall Street'. They suspect businessman Low Taek Jho, also known as Jho Low, masterminded the massive embezzlement through several schemes. Low, who has been on the run since 2016, has denied all allegations. StanChart said on Tuesday that liquidators had previously claimed the firms implicated in the fraud were shell companies with no legitimate business. Another prominent figure in the 1MDB affair, ex-Goldman Sachs banker Tim Leissner, was sentenced to two years behind bars in late May after pleading guilty to federal bribery charges. A 1MDB board spokesperson said: 'The Malaysian people were the true victims of this global fraud, and all parties are determined to hold every facilitator to account - including financial institutions that failed in their most basic duties of vigilance and responsibility.' In 2016, StanChart was fined S$5.2million (US$4million) by Singapore's central bank - The Monetary Authority of Singapore (MAS) - for breaking anti-money laundering rules. MAS said the company's breaches were 'serious,' but did not uncover 'pervasive control weaknesses or wilful misconduct'. Standard Chartered shares were 2.9 per cent lower at 1,172.5p on Tuesday morning, making them one of the FTSE 100's biggest fallers.
The Independent
6 hours ago
- The Independent
Why Thailand's PM Paetongtarn Shinawatra was suspended and what it means for fragile political landscape
Thailand's prime minister Paetongtarn Shinawatra has been suspended from her duties following a ruling by the Constitutional Court over allegations she violated ministerial ethics in connection with a leaked phone call with former Cambodian leader Hun Sen. The suspension comes amid renewed border tensions between the two Southeast Asian nations and has further shaken Thailand's already fragile political landscape. On Tuesday, the nine-member court decided by a 7–2 majority to remove Ms Shinawatra from her prime ministerial role while it investigates the complaint brought by 36 conservative senators. The petition accuses her of undermining Thailand's military and national interest by describing a Thai Army commander as her 'opponent' and referring to Mr Hun Sen in familial terms – calling him 'uncle' – during a private conversation that was later leaked. Ms Shinawatra's duties have now been handed to deputy prime minister Suriya Juangroongruangkit in a caretaker capacity while the inquiry proceeds, reported Al Jazeera. However, she retains her place in the cabinet, having been named culture minister during a recent reshuffle. Following the court's ruling, she appeared before reporters at Government House in Bangkok and said: 'The ruling has come out, and I accept the court's decision. I'd like to reiterate that it's always been my intention to do the best thing for my country.' Impact of phone conversation on Thailand's politics The leaked conversation, reportedly intended to de-escalate tensions following a deadly cross-border clash on 28 May that left one Cambodian soldier dead, has sparked a political storm. Critics, particularly from the conservative bloc, accused Ms Shinawatra of appeasing Cambodia and disrespecting the military. The backlash has weakened her Pheu Thai Party -led coalition, which was already dealing with internal strains. One party has exited the alliance, and a no-confidence vote in parliament is now anticipated. Political scientist Dr Purawich Watanasukh of Thammasat University said the temporary suspension would contribute to further instability. 'In the longer term, the government's stability is likely to become even more fragile due to the uncertainty surrounding Paetongtarn's situation,' he told Al Jazeera. A final ruling could take weeks or even months, leaving the administration in a state of limbo. Ms Shinawatra is the third member of her family to serve as Thailand's premier, following her father, Thaksin Shinawatra, and her aunt, Yingluck Shinawatra. Both were ousted in previous coups and court rulings widely viewed as politically motivated. Analysts suggest her suspension continues this pattern of judicial intervention against the Shinawatra dynasty. Dr Pavin Chachavalpongpun, a professor at Kyoto University 's Centre for Southeast Asian Studies, described the court's decision as a move that erodes Ms Shinawatra's authority and legitimacy. 'This decision could deepen rifts within Pheu Thai's coalition and embolden its rivals, both inside and outside parliament,' he said, adding that such instability could distract the government at a time when the country faces serious economic and geopolitical headwinds. The suspension comes as Thailand grapples with a resurgent border conflict with Cambodia, rooted in longstanding disputes over land demarcation. The immediate cause of the renewed hostilities was an exchange of gunfire in a contested frontier zone on 28 May, resulting in the death of a Cambodian soldier. Both nations claimed they acted in self-defence, but tensions have escalated since. The 817km boundary between Thailand and Cambodia, drawn during the French colonial era in 1907, has never been fully demarcated. Cambodia has historically relied on the original French maps to assert its claims, while Thailand contests the accuracy of those documents. Periodic violence and nationalist flare-ups have punctuated efforts to resolve the disputes. One of the most contentious sites is the Preah Vihear temple, an 11th-century Hindu monument perched atop a cliff along the border. The International Court of Justice (ICJ) awarded the site to Cambodia in 1962, but Thailand has long disputed the ruling, particularly the surrounding land. Armed clashes over the temple flared in 2008 when Cambodia applied to list it as a Unesco World Heritage site, with further violence erupting in 2011 and again in 2013, when the ICJ reaffirmed Cambodia's sovereignty over the area and ordered Thai troops to withdraw. Although the latest incident in May occurred away from the Preah Vihear temple, the area remains symbolic of broader territorial and historical grievances. Cambodian officials have indicated they plan to take four unresolved areas, including the site of the most recent clash, back to the ICJ. Thailand, meanwhile, insists that all border disagreements should be settled through the bilateral Joint Border Commission established in 2000. Officials in Phnom Penh have argued that this mechanism has failed to produce results and should be abandoned in favour of international arbitration. In response to the 28 May clash, both countries issued statements pledging to maintain peace and pursue dialogue. However, each side has taken aggressive steps short of military confrontation. Thailand imposed heavy restrictions at its border, allowing crossings only for humanitarian or essential purposes. Cambodia retaliated by halting imports of Thai fruits, vegetables, fuel and cultural content such as films and TV shows. It also severed select internet and electricity links, further raising tensions. The political implications of the conflict have added pressure on Ms Shinawatra's administration. While her government initially struck a conciliatory tone, the Thai military adopted a more assertive stance, warning of a potential 'high-level operation' if Thai sovereignty was perceived to be under threat. Ms Shinawatra later echoed these remarks while reaffirming Thailand's preference for peaceful resolution. The mixed messaging underscored deeper divisions between her civilian government and the military establishment – a divide that has shaped Thai politics for decades. Critics view the court's decision to suspend Ms Shinawatra as another episode in the protracted power struggle between elected governments and Thailand's conservative establishment, which includes the judiciary, military and royalist elites. Her predecessor, Mr Srettha Thavisin, was also removed by the Constitutional Court in 2024 over alleged ethical violations. The same constitutional provisions – specifically Article 170, which requires ministers to demonstrate "evident integrity" – have been invoked again in this case. Dr Prem Singh Gill, a constitutional law scholar at Muhammadiyah University in Indonesia, said the case raised broader concerns about judicial overreach and the politicisation of constitutional ethics. 'This isn't merely political theatre; it's constitutional adjudication with serious separation of powers implications,' he said. He also pointed out that diplomatic exchanges such as the one between Ms Shinawatra and Mr Hun Sen are typically protected under the Vienna Convention on Diplomatic Relations. 'Their weaponisation constitutes a potential breach of diplomatic protocol and customary international law,' he said. Mr Hun Sen's decision to release the phone call has also come under scrutiny. Though no longer prime minister, he remains an influential political figure in Cambodia as Senate president and father to current prime minister Hun Manet. The Shinawatra and Hun families have long-standing ties, and their continued involvement in politics has shaped bilateral relations. In Thailand, the ruling has sparked renewed criticism from opposition parties. Parit Wacharasindhu, a Member of Parliament for the People's Party, wrote on social media: 'The People's Party has never feared anyone and never trusted the Paetongtarn government … but changing the government must not come at the cost of undermining democratic principles.' He warned that removing an elected leader without due process risks deepening public disillusionment.
