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The Star
2 days ago
- Business
- The Star
Rare earth may help Indonesia persuade US to lower reciprocal tariffs, but experts remain sceptical
JAKARTA: Even as Indonesia's lead negotiator intensified lobbying efforts for a lowering of America's reciprocal tariffs this week, analysts remain sceptical that talks will make headway even if Jakarta attempts to leverage the nation's rich mineral resources as a bargaining chip. They said the US' apparently adamant rejections to Indonesia's proposals to balance trade were politically motivated, hence any offers, even those that offer economic benefit, will not make them budge. Still, plans to meet with members of the Trump administration in Washington this week went on, as Coordinating Minister for Economic Affairs Airlangga Hartarto pressed on with negotiation meetings even hours after the Monday (July 7) letter that put Indonesia's tariff rate unchanged at 32 per cent. In a text reply to The Straits Times on July 7 night, Airlangga hinted that Indonesia would continue dialogue up to Aug 1, the latest tariff deadline set by the US. He didn't elaborate. Indonesia has offered to cut tariffs on the US imports to near zero, especially for agriculture and industrial items, committed to buying US aircraft, procuring energy commodities such as natural gas and opening up to the US investment opportunities in nickel and copper smelting. These proposals have not gone anywhere. Analysts do not expect much to come out of the ongoing talks, given that there are other political and American domestic considerations. Analyst Henry Pranoto said that the tariff rates for Indonesia are largely motivated by Trump's plan to bring manufacturing jobs back to the US. 'The higher tariffs are meant to offset the gap in the minimum wages between the US and the developing countries,' said Henry, who works at a Jakarta-based investment bank. Meanwhile, Dr Nasir Tamara, a former visiting senior research fellow at ISEAS – Yusof Ishak Institute, noted that Indonesia's recent entry into Brics, a grouping of countries that include China and Russia, could also weigh on the negotiation process, as Trump has threatened an additional 10 per cent tariff on those that aligned with the 'anti-American' grouping. Still, officials are not giving up. A government official who is familiar with the negotiation, told ST that Jakarta is planning to dangle its rich, undeveloped rare earth elements (REEs) reserve as part of negotiations to reduce the 32 per cent reciprocal tariff rate set by the US as the August deadline looms. 'Twenty days is not a lot of time, but we have two things that the US really wants. One of them is rare earth,' said the official who spoke on condition of anonymity, adding that this would be Indonesia's third formal proposal to the US. He declined to provide further information on the second aspect that Indonesia was looking to leverage on. The Indonesia negotiation team had submitted in the second week of April a comprehensive letter to start negotiation, following Trump's Liberation Day tariff speech on April 2. It was addressed to the US Secretary of Commerce Howard Lutnick, containing a list of what Indonesia could do to balance trade and what the US could do in exchange. In 2024, Indonesia ran a US$17.9 billion (S$22.9 billion) trade surplus with the US. This compares to Vietnam's trade surplus at US$123 billion, Thailand's at US$45.6 billion and Malaysia's US$24.8 billion. The negotiations progressed, and Indonesian officials told reporters that the US would agree to sign a US$34 billion pact on July 7. The deal would purportedly include a pledge by Indonesian state oil and gas company Pertamina to buy significantly more fuel from the US, as well as the purchase of 75 Boeing aircraft by state-controlled airline Garuda Indonesia. As part of the deal, Indonesia would also pledge to buy more agricultural products from the US such as soybean, and its newly-formed sovereign wealth fund would invest in the oil and gas sector in Alaska. Meanwhile, US companies, such as Apple, would have easier access to sell telecommunication products in Indonesia. US firms would also have more opportunities to invest in nickel smelters to make raw materials to produce electric vehicle batteries. But the expected signing of the July 7 pact did not happen. Indonesia's rare earth industry is relatively nascent and underdeveloped, but it has potential beyond its current stated reserve, according to observers. The government is also looking to open up the industry by exploring rare earth mining permits. Rare earth – used in high-tech, energy and defence applications including missiles – was previously deployed as a negotiating weapon by China, the world's top supplier, in its trade talks with Washington. China, which controls 70 per cent of global rare earth production, had restricted the export of some rare earth minerals on April 4 – a move seen as part of its retaliatory measures against the US' tariff hikes that were announced that same month. This affected ongoing trade talks between the two superpowers. Talks later resumed, and they reached a deal in June after China agreed to release the flow of rare earth shipments while the US lifted its export countermeasures over chips, jet engines and aerospace components. Among the regions rich in rare earth in Indonesia are Humbang Hasundutan in North Sumatra province and Mamuju in West Sulawesi province. The Mamuju mine has been touted to be the first in Indonesia that would get a rare earth mining permit from the government. It contains up to 6,000 parts per million (ppm) of rare earth elements, which is roughly 0.6 per cent of the amount of earth mined. Indonesia, however, has not done as much geochemical mapping, or exploration for rare earth as China or Australia, hence a full picture of its reserve is not available, Fabby Tumiwa, executive director of the Institute for Essential Services Reform, a Jakarta think tank, told ST. But rare earths in Indonesia have also been found in tailings, or waste materials from mining operations. Indonesia's state mining holding company MIND ID said on April 24 that it is working on a pilot project to extract and process rare earth elements found in the tin-mining waste produced by PT Timah, its subsidiary, in Tanjung Ular, Bangka Belitung province. The company is seeking a foreign partner that has an advanced technology to help process monazite found in the tailings into mixed rare earth carbonate that can be further processed into pure rare earth oxides such as neodymium and praseodymium. These two rare earth elements, if combined, would become the strongest permanent magnet that is used in electric vehicles, smartphones and military equipment. - The Straits Times/ANN
Straits Times
3 days ago
- Business
- Straits Times
Rare earth may help Indonesia persuade US to lower reciprocal tariffs, but experts remain sceptical
Sign up now: Get ST's newsletters delivered to your inbox Indonesia's rare earth industry is relatively nascent and underdeveloped, but it has potential beyond its current stated reserve, according to observers. JAKARTA – Even as Indonesia's lead negotiator intensified lobbying efforts for a lowering of America's reciprocal tariffs this week, analysts remain sceptical that talks will make headway even if Jakarta attempts to leverage the nation's rich mineral resources as a bargaining chip. They said the US' apparently adamant rejections to Indonesia's proposals to balance trade were politically motivated, hence any offers, even those that offer economic benefit, will not make them budge. Still, plans to meet with members of the Trump administration in Washington this week went on, as Coordinating Minister for Economic Affairs Airlangga Hartarto pressed on with negotiation meetings even hours after the July 7 letter that put Indonesia's tariff rate unchanged at 32 per cent. In a text reply to The Straits Times on July 7 night, Mr Airlangga hinted that Indonesia would continue dialogue up to Aug 1, the latest tariff deadline set by the US. He didn't elaborate. Indonesia has offered to cut tariffs on the US imports to near zero, especially for agriculture and industrial items, committed to buying US aircraft, procuring energy commodities such as natural gas and opening up to the US investment opportunities in nickel and copper smelting. These proposals have not gone anywhere. Analysts do not expect much to come out of the ongoing talks, given that there are other political and American domestic considerations. Analyst Henry Pranoto said that the tariff rates for Indonesia are largely motivated by Mr Trump's plan to bring manufacturing jobs back to the US. 'The higher tariffs are meant to offset the gap in the minimum wages between the US and the developing countries,' said Mr Henry, who works at a Jakarta-based investment bank. Meanwhile, Dr Nasir Tamara, a former visiting senior research fellow at ISEAS – Yusof Ishak Institute , noted that Indonesia's recent entry into Brics, a grouping of countries that include China and Russia, could also weigh on the negotiation process, as Mr Trump has threatened an additional 10 per cent tariff on those that aligned with the ' anti -American' grouping. Still, officials are not giving up. A government official who is familiar with the negotiation, told ST that Jakarta is planning to dangle its rich, undeveloped rare earth elements (REEs) reserve as part of negotiations to reduce the 32 per cent reciprocal tariff rate set by the US as the August deadline looms. 'Twenty days is not a lot of time, but we have two things that the US really wants. One of them is rare earth,' said the official who spoke on condition of anonymity, adding that this would be Indonesia's third formal proposal to the US. He declined to provide further information on the second aspect that Indonesia was looking to leverage on. The Indonesia negotiation team had submitted in the second week of April a comprehensive letter to start negotiation, following Mr Trump's Liberation Day tariff speech on April 2. It was addressed to the US Secretary of Commerce Howard Lutnick, containing a list of what Indonesia could do to balance trade and what the US could do in exchange. In 2024, Indonesia ran a US$17.9 billion (S$22.9 billion) trade surplus with the US. This compares to Vietnam's trade surplus at US$123 billion , Thailand's at US$45.6 billion and Malaysia's US$24.8 billion. The negotiations progressed, and Indonesian officials told reporters that the US would agree to sign a US$34 billion pact on July 7. The deal would purportedly include a pledge by Indonesian state oil and gas company Pertamina to buy significantly more fuel from the US, as well as the purchase of 75 Boeing aircraft by state-controlled airline Garuda Indonesia. As part of the deal, Indonesia would also pledge to buy more agricultural products from the US such as soybean, and its newly-formed sovereign wealth fund would invest in the oil and gas sector in Alaska. Meanwhile, US companies, such as Apple, would have easier access to sell telecommunication products in Indonesia. US firms would also have more opportunities to invest in nickel smelters to make raw materials to produce electric vehicle batteries. But the expected signing of the July 7 pact did not happen. Indonesia's rare earth industry is relatively nascent and underdeveloped, but it has potential beyond its current stated reserve, according to observers. The government is also looking to open up the industry by exploring rare earth mining permits. Rare earth – used in high-tech, energy and defence applications including missiles – was previously deployed as a negotiating weapon by China, the world's top supplier, in its trade talks with Washington. China, which controls 70 per cent of global rare earth production, had restricted the export of some rare earth minerals on April 4 – a move seen as part of its retaliatory measures against the US' tariff hikes that were announced that same month. This affected ongoing trade talks between the two superpowers. Talks later resumed, and they reached a deal in June after China agreed to release the flow of rare earth shipments while the US lifted its export countermeasures over chips, jet engines and aerospace components. Among the regions rich in rare earth in Indonesia are Humbang Hasundutan in North Sumatra province and Mamuju in West Sulawesi province. The Mamuju mine has been touted to be the first in Indonesia that would get a rare earth mining permit from the government. It contains up to 6,000 parts per million (ppm) of rare earth elements, which is roughly 0.6 per cent of the amount of earth mined . Indonesia, however, has not done as much geochemical mapping, or exploration for rare earth as China or Australia, hence a full picture of its reserve is not available, Mr Fabby Tumiwa, executive director of the Institute for Essential Services Reform, a Jakarta think tank, told ST. But rare earths in Indonesia have also been found in tailings, or waste materials from mining operations. Indonesia's state mining holding company MIND ID said on April 24 that it is working on a pilot project to extract and process rare earth elements found in the tin-mining waste produced by PT Timah, its subsidiary, in Tanjung Ular, Bangka Belitung province. The company is seeking a foreign partner that has an advanced technology to help process monazite found in the tailings into mixed rare earth carbonate that can be further processed into pure rare earth oxides such as neodymium and praseodymium . These two rare earth elements, if combined, would become the strongest permanent magnet that is used in electric vehicles, smartphones and military equipment.
New Straits Times
5 days ago
- Business
- New Straits Times
Jakarta-based Archipelago opens Malaysia's first Quest Hotel in Port Dickson
KUALA LUMPUR: Malaysia's hotel sector celebrates another major milestone today with the official opening of Quest Hotel Midport Port Dickson, the country's first-ever Quest Hotel by Jakarta-based Archipelago International. This opening represents a key step in Archipelago's ongoing regional growth strategy. The group, which signed a 700-room management contract for the Port Dickson development back in 2018, brings its renowned Quest Hotel brand to Malaysian shores for the very first time. Originally scheduled to open in mid-2019, the hotel is now welcoming guests with 413 rooms and suites and features Port Dickson's largest convention centre along with a waterpark. The opening of the hotel is part of a broader vision for the Malaysia Vision Valley masterplan, an ambitious integrated development blueprint that aims to drive economic growth, enhance social wellbeing, and safeguard the natural environment in the region. Long favoured for its beaches, Port Dickson remains one of Malaysia's top seaside destinations, offering visitors a mix of pristine coastline, family-friendly attractions, and recreational activities. The arrival of a major international hotel brand is set to strengthen the town's appeal as a prime getaway for both domestic and foreign tourists. "Quest Hotel Midport Port Dickson marks a significant milestone in our expansion in Malaysia. We aim to provide a comfortable stay experience for both families and business travellers. Our goal is to deliver the high service standards that Archipelago is known for," said John Flood, chief executive officer of Archipelago. With a portfolio spanning more than 45,000 rooms and residences in over 300 hotels across Southeast Asia, Latin America, the Caribbean, the Middle East, and Oceania, Archipelago continues to expand its footprint, bringing its trusted brands to new markets while delivering consistent value and quality hospitality.
New Straits Times
6 days ago
- Business
- New Straits Times
MACC wins three awards at Asean PR Excellence Awards 2025
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC), through its Strategic Communications Division, has clinched three prestigious awards at the 5th Asean PR Excellence Awards 2025, held at the Renaissance Hotel here today. The awards received were the Diamond Award for the 'Best Crisis Management' category, and two Gold Awards for 'Best Government PR' and 'Best Communication Use of Social Media'. MACC deputy chief commissioner (prevention), Datuk Azmi Kamaruzaman, said the awards were a significant recognition for the commission, highlighting that public relations and communications are not merely support functions, but serve as the core drivers of integrity and trust within an organisation. "I would like to thank the Asean PR Network, the panel of international and Asean judges, the Institute of Public Relations Malaysia (IPRM), and all the participants present today. "We take this responsibility very seriously. Our Strategic Communications Division strives for excellence through professionalism, consistency, and continuous training. "These awards are a deeply meaningful acknowledgement of their dedication and commitment. On behalf of MACC, I once again thank you for this honour," he said. The 5th Asean PR Excellence Awards 2025 was organised by the Jakarta-based Asean Public Relations Network (APRN) in collaboration with IPRM, recognising outstanding achievements in public relations across Asean. For all three categories, the division submitted a special report highlighting its role as the agency responsible for crisis management during the investigation involving former Prime Minister Datuk Seri Ismail Sabri Yaakob, which secured the Diamond Award. The other two entries comprised a media management plan on the Corruption Perceptions Index (CPI) and efforts to revolutionise MACC's publicity and promotions through artificial intelligence (AI). Meanwhile, APRN President Prita Kemal Gani said the awards recognised outstanding achievements in public relations across the Asean region, celebrating innovative campaigns and impactful initiatives that have contributed to the advancement of the profession. The event was also held in conjunction with the annual Kuala Lumpur International PR Conference.
Korea Herald
03-07-2025
- Entertainment
- Korea Herald
Vantage Foundation Joins Hands with KDM Foundation to Empower Street Children in Jakarta
JAKARTA, Indonesian, July 3, 2025 /PRNewswire/ -- In line with its commitment to meaningful community impact, Vantage Foundation has partnered with KDM Foundation, a Jakarta-based nonprofit dedicated to transforming the lives of homeless children through education, creativity, and sustainable living. During a recent visit to the KDM campus, Vantage Foundation team members were welcomed by Sotar Sinaga, Director of KDM Foundation, who shared the organisation's holistic approach to youth development. More than just a shelter, KDM offers an immersive and empowering environment where children are encouraged to explore their potential through activities like painting, handcrafting, football, and environmental education. The visit offered a closer look at KDM's impressive self-sustaining ecosystem, which includes a small farm with chickens and catfish, alongside an organic waste management system. These initiatives not only serve practical needs, but also educate the children about sustainability, responsibility, and self-reliance. A particularly moving moment was learning about the 'Pepe Doll' art project, created in partnership with local brand Tulisan. Inspired by the story of a young girl seeking food on the streets, proceeds from the sale of the dolls directly support KDM's mission to provide education and shelter to children in need. KDM's outreach begins far beyond its campus walls. One of its most effective engagement tools is football – not simply as a sport, but as a platform to teach discipline, cooperation, and teamwork. By organising matches in the community, KDM builds trust and opens the door for vulnerable youth to find safety, guidance, and purpose. "We don't call it fundraising – we call it friend raising," said Sotar Sinaga, Director of KDM Foundation. "Without friends, we cannot run our school or sustain these life-changing projects. It's the community that keeps us going." Through this partnership, Vantage Foundation is proud to stand alongside KDM Foundation in its mission to create a brighter future for Indonesia's underserved children. The joy, resilience, and creativity witnessed during the visit deeply moved the Vantage team and reaffirmed the importance of investing in early, inclusive support for at-risk youth. "The environment at KDM is filled with hope and opportunity," said Steven Xie, Executive Director of Vantage Foundation. "Every child we met carried a spark of potential and it's through partnerships like this that we can help them realise it. We are honoured to support KDM's incredible work and help amplify their impact." Together, Vantage Foundation and KDM are not just building shelter – they're building futures, confidence, and connection. This collaboration marks another meaningful step in Vantage Foundation's ongoing journey to uplift communities and create lasting change. Vantage Foundation Vantage Foundation is an independent charitable organization launched at the McLaren Technology Centre in the UK in 2023. The foundation has partnered with organisations worldwide, including Grab Indonesia, the iREDE Foundation in Nigeria, Teach for Malaysia, and Instituto Claret in Brazil, to drive impactful social initiatives.
