Latest news with #Prabowo
The Star
2 days ago
- Business
- The Star
Prabowo backs away from Nusantara for Independence Day celebration
JAKARTA: The government has decided to hold this year's Independence Day celebration in Jakarta, despite President Prabowo Subianto's earlier pledge to mark the occasion in the future capital of Nusantara, raising fresh questions about the long-term commitment to his predecessor's flagship project. Presidential Communications Office (PCO) chair Hasan Nasbi confirmed during a press briefing on Wednesday (July 16) that the State Secretariat had formed the organizing committee for the Aug 17 event, with the PCO also involved in the preparations. 'The Independence Day celebration will be held in Jakarta,' Hasan firmly stated. Last year, such a celebration was held simultaneously in Jakarta and Nusantara. Then-president Joko 'Jokowi' Widodo, who launched the capital relocation megaproject, attended the ceremony in Nusantara, alongside then–defence minister and president-elect Prabowo. At the time, when asked whether future celebrations would continue in the new capital, Prabowo responded, 'Insya Allah [God willing], it will be celebrated again here.' However, Deputy State Secretary Juri Ardiantoro explained on Thursday that the decision to keep the celebration in Jakarta was made to avoid disrupting ongoing construction in Nusantara. 'We are focusing on completing the construction first,' Juri was quoted by as saying. Still, he noted that the Nusantara Capital City (IKN) Authority would organize a separate local celebration in the East Kalimantan city. Experts suggest Prabowo's decision to hold this year's Independence Day celebration in Jakarta reflects a shift in priorities driven by cost considerations and the administration's focus on populist programmes. 'The current government is not placing strong emphasis on Nusantara,' political analyst Adi Prayitno said on Thursday. 'Prabowo appears more focused on his own flagship initiatives, such as the free nutritious meals and village cooperatives programmes.' The reversal comes as the new government imposes sweeping budget cuts to fund these signature policies. Hosting the national celebration in Nusantara, where infrastructure is still under development, would likely incur higher logistical and operational costs. Still, Adi noted that a complete abandonment of the new capital project is unlikely, pointing out that the administration has allocated Rp 48 trillion (US$2.94 billion) for Nusantara's development until 2029. However, this figure falls well short of the Rp 79 trillion allocated during Jokowi's administration between 2022 and 2024. Public policy expert Trubus Rahardiansyah called the decision to keep the Aug 17 event in Jakarta a 'practical move', rather than a sign that Prabowo is walking away from the capital relocation project. 'Unlike Nusantara, all the necessary facilities are already in Jakarta, so holding it here will be cheaper,' Trubus said. 'That said, Nusantara will likely remain on the back burner under Prabowo's administration, at least until all of his key programmes are fully running.' But, political researcher Wasisto Raharjo Jati of the National Research and Innovation Agency (BRIN) warned that Prabowo needed to demonstrate clearer political commitment to the project. Notably, he has yet to visit Nusantara during his nine months in office. '[The public] already views Nusantara as a project too big to fail. If Prabowo continues to let the project appear sidelined, it would also reflect poorly on his administration,' Wasisto said. While the legal framework for relocating Indonesia's capital from Jakarta to Nusantara was enacted in 2021, President Prabowo has yet to issue the presidential decree required to officially move the seat of government. Technically, this formal step is expected to take place only after the government achieves its 2028 target of turning Nusantara into a fully functioning political capital, complete with legislative and judicial buildings, supporting infrastructure and the already constructed government offices. IKN Authority head Basuki Hadimuljono told lawmakers earlier this month that the agency is preparing to launch several new development projects this year, including the construction of legislative and judicial offices, supporting infrastructure and staff housing. Meanwhile, the Public Works Ministry continues work on existing projects such as toll roads, the national mosque, the vice-presidential palace and roads within the central government zone. The Public Housing and Settlements Ministry is also finalising 47 residential towers for civil servants. - The Jakarta Post/ANN
AllAfrica
3 days ago
- Politics
- AllAfrica
Can Indonesia stay non-aligned while joining BRICS?
When Indonesia joined this year's BRICS Summit as a full member in Rio de Janeiro, it was stepping into a long-anticipated role. The Southeast Asian nation has long aspired to be more than a leading regional actor; it seeks to be a global leader, and BRICS membership offered the symbolism of arrival. President Prabowo Subianto leveraged the moment to call for a revitalized multilateral order, greater South–South cooperation and fairer global governance. He invoked the spirit of Bandung — the 1955 conference Indonesia famously convened to unite newly independent nations under the banner of peace, solidarity and nonalignment. But for all the talk of balance, Indonesia's BRICS debut also raised fresh concerns about tilt as questions arise about whether Prabowo's Indonesia is drifting into China and Russia's orbit and away from the West. The evidence is not conclusive, but the optics are striking. In one of his first diplomatic moves after winning the presidency, Prabowo flew to Beijing — even before formally taking office. He later signed a joint statement with China, which many in the region saw as overly conciliatory, particularly regarding the South China Sea, where the two nations have overlapping claims. Meanwhile, at the St Petersburg International Economic Forum, Prabowo praised China and Russia as countries 'without double standards,' raising eyebrows given both countries' questionable records on sovereignty, repression and international norms. His absence from the G7 summit only deepened the perception of lean. Indonesia has good reasons to challenge the dominance of Western institutions. Western powers have long wielded influence in ways that often ignore or exploit the interests of the Global South. The failures are real — from broken climate finance promises, to selective outrage over territorial violations, to a rules-based order applied unequally. Indonesia is right to demand reform. But opposing Western hypocrisy should not mean excusing the same behaviors when they come from elsewhere. This is the core danger of being seen as part of an 'anti-Western axis': it casts foreign policy not as a principled stand, but as an act of alignment — the very thing Indonesia's bebas aktif doctrine was designed to avoid. That doctrine, which has guided Indonesia since the Cold War, rests on two pillars: independence and active engagement. It allowed Indonesia to work with all sides without serving any. It's what gave Jakarta the credibility to lead the Non-Aligned Movement and host the Bandung Conference. And it remains one of Indonesia's most strategic diplomatic assets. But independence is not neutrality. And active engagement means speaking up, especially when it's inconvenient. Indonesia's foreign policy cannot succeed if it avoids difficult conversations. Jakarta must be willing to call out abuses of power wherever they occur: in the West, yes, but also in China, Russia and other BRICS members. Remaining silent on Russia's invasion of Ukraine or downplaying China's human rights violations in Xinjiang doesn't look like independent diplomacy. It looks like avoidance. Indonesia's power lies in its ability to serve as a bridge — between the developed and developing world, between major powers and emerging ones. But bridges require trust. And trust comes from consistency. Right now, that consistency is in question. If Indonesia speaks forcefully against Western double standards but not against the violations of its new BRICS partners, it risks being seen as selective rather than principled. Indonesia should engage the West and the non-West. It should deepen cooperation with China and maintain strong ties with the US, Europe and Japan. It should continue playing an active role in ASEAN and take full advantage of its BRICS membership to promote reform of global governance. But with every new partnership comes a harder obligation: the obligation to hold partners accountable. This is especially critical as BRICS – now expanded to include Brazil, Russia, India, China, South Africa, Egypt, Iran, the UAE and Indonesia, thus representing more than half the world's population – itself evolves. What started as an economic bloc is now drifting into the realm of political identity. With members like Russia and China in the fold, BRICS risks becoming more about opposition to the West than about offering meaningful alternatives. Indonesia's job is not to amplify that drift — it's to anchor the bloc in something more constructive. At the Rio summit, Prabowo rightly invoked the legacy of Bandung. But Bandung was not about polite diplomacy. It was about bold leadership from the Global South — leadership that challenged colonialism, injustice and domination in all forms. That legacy only lives on if Indonesia is willing to confront power, not just shift its gaze from one pole to another. The world doesn't need another country choosing sides. It needs countries willing to speak honestly to all sides. That is the test Indonesia now faces. At BRICS, Indonesia took a step onto a bigger stage. What it says next — and who it's willing to say it to — will determine whether it becomes a global leader or just another cautious voice in a crowded room. Muhammad Zulfikar Rakhmat is director of the China-Indonesia Desk at Center of Economic and Law Studies (CELIOS).
The Star
3 days ago
- Business
- The Star
Prabowo and Trump have struck tariff deal – but at what cost to Indonesia?
SINGAPORE: The trade deal announced on Tuesday (July 15) lowering US tariffs on Indonesian goods is seen by some as a diplomatic win for President Prabowo Subianto, though others warn that he may have overpromised and burdened Indonesia with costly commitments. US President Donald Trump broke the news on his Truth Social platform, saying that he had struck a trade pact with Indonesia following negotiations with Prabowo to avoid steeper tariffs. 'They are going to pay 19 per cent and we are going to pay nothing... We will have full access into Indonesia, and we have a couple of those deals that are going to be announced,' he later told reporters. No details have been given about the deal, which comes after deals Trump has made with Vietnam and the UK. The US President had threatened Indonesia with a 32 per cent tariff rate starting on Aug 1 in a letter last week. Prabowo on July 16 said his conversation with Trump heralded 'a new era of mutual benefit' between both sides. As part of the deal, Indonesia has committed to purchasing US$15 billion in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets, many of them 777s. The sheer scale of Indonesia's purchase commitments, and the lack of clarity on how they will be financed and integrated with national strategies, has raised eyebrows, with experts warning that the deal could set a precedent for other trade partners to demand similar 'full access' terms. Associate Professor Yohanes Sulaiman of Jenderal Achmad Yani University in West Java highlighted the plan to buy the Boeing jets, noting that national carrier Garuda Indonesia is still struggling financially and unlikely to be in a position to take on large-scale purchases. In the first quarter of 2025 alone, the state-owned carrier recorded a net loss of US$75.9 million, surpassing its already-large net loss for the entire 2024 fiscal year. When asked about the planes on July 16, President Prabowo said that Indonesia needs to grow the national carrier's presence and, to do so, new aircraft are needed. There are also doubts about the energy component. While Indonesia does import liquefied petroleum gas and other fuels, analysts say a US$15 billion commitment would run counter to the government's ambitions to reduce fossil fuel dependency and boost renewables. The scale of the energy imports is not aligned with Indonesia's energy transition goals, and this could introduce fiscal strain and policy contradictions down the line, noted Dr Siwage Dharma Negara, a senior fellow at the ISEAS – Yusof Ishak Institute. 'The arrangement doesn't necessarily reflect a balanced, win-win outcome,' he said, warning that Indonesia has to keep in mind the longer-term costs. 'It remains unclear whether the economic benefits fully justify the scale of concessions offered by Jakarta.' Indonesia's goods trade with the US reached nearly US$40 billion in 2024, with a roughly US$18 billion surplus, and key exports including electronics, footwear, car tyres, palm oil and frozen shrimp. Indonesia's central bank on July 16 delivered its fourth interest rate cut since last September, trimming its benchmark rate by 25 basis points to 5.25 per cent in a bid to support the economy amid weakening global trade and sluggish domestic demand. Sluggish household spending had already weakened growth in the first quarter, while the outlook for subsequent quarters has been clouded by the impact of US tariffs on global trade. Some observers found the direct negotiation between the two leaders notable. This growing personal rapport was most visibly demonstrated in November 2024, when Prabowo posted a video of his congratulatory call to Trump after the US presidential election, in which he offered to fly over in person, and referenced his American military training. Bank Permata economist Josua Pardede said Trump singling out Prabowo and calling him 'highly respected' was more than symbolic, chalking it up as a win for the Indonesian leader and his foreign policy approach. 'Such direct acknowledgment from a global leader underscores President Prabowo's capability to manage complex international relations and signals strength and credibility to both domestic and international stakeholders,' he said. The agreement signals that Prabowo is willing to make bold economic moves to safeguard Indonesia's interests, said Dr Siwage. 'Trump's public acknowledgment of a direct deal with Prabowo suggests that Indonesia took an active role in shaping the outcome,' he said, adding that this highlights how both leaders prefer a personal, transactional style of diplomacy. Other experts, however, cautioned that the deal may carry ripple effects across Indonesia's wider network of economic relationships. Muhammad Habib Abiyan Dzakwan from the Centre for Strategic and International Studies warned that the nature of the arrangement, involving significant import concessions, could prompt demands from other economic partners. 'What I am concerned the most is the extent of this unusual arrangement would then affect Indonesia's relations with Asean neighbours and free trade agreement partners. More partners will likely demand the same concession from Indonesia,' he said. In particular, countries like China, the archipelago's largest trading partner and one of its top investors, may view Jakarta's increasing economic overtures to the US with suspicion, he added. He cautioned that the government must ensure it has sufficient budget and fiscal space not only to meet these obligations, but also to prepare for future uncertainties that may arise. While the figures in the deal appear large, Bank Permata's Josua said the commitments are likely to be staggered over time, and may align with Indonesia's long-term infrastructure and aviation ambitions. But whether they benefit Indonesia in the long run will depend on how they create jobs and drive productivity, and how Indonesia integrates these commitments with domestic policy objectives. 'Careful negotiation and execution will be critical to ensuring that benefits are maximised and commensurate with the substantial financial outlays involved,' Josua said. - The Straits Times/ANN
Qatar Tribune
4 days ago
- Business
- Qatar Tribune
Indonesia hails new era with US after Trump lowers tariff to 19%
Agencies Indonesia's leader lauded on Wednesday a 'new era' of trade relations with the U.S., following President Donald Trump's announcement that he had lowered the tariff rate faced by Southeast Asia's largest economy from 32% to 19%. The Trump administration has been under pressure to finalize trade pacts after promising a flurry of deals recently, as countries sought talks with Washington to avoid the U.S. president's threatened tariffs, announced in April but delayed until August. 'I had a very good call with President Donald Trump. Together, we agreed and concluded to take trade relations between Indonesia and the U.S. into a new era of mutual benefit,' Indonesia's President Prabowo Subianto wrote in an Instagram post. Prabowo, a populist former general, posted pictures of himself laughing on the phone with Trump but did not give any specifics of the deal. However, Prabowo's presidential spokesperson confirmed the new 19% rate and stated that it resulted from direct negotiations between the Indonesian leader and Trump. 'It is an extraordinary negotiation conducted directly by our president with President Donald Trump,' Hasan Nasbi said, adding that the deal was 'progress that cannot be called small.' Prabowo was set to land back in Indonesia on Wednesday afternoon from a trip to Europe, before giving a statement, Nasbi said. Trump said Tuesday he had struck the pact in return for significant purchase commitments from Jakarta following negotiations, including a pledge to buy 50 Boeing jets. In return for a lower tariff, Indonesia has committed to spending billions to increase energy, agriculture and merchandise imports from the U.S. Trump and Prabowo have developed a warm relationship since the U.S. leader first clinched the presidency in late 2016. His first administration dropped a de facto U.S. visa ban for Prabowo over alleged crimes committed under late dictator Suharto, inviting him to Washington in 2020 when he was the Indonesian defense had sent his top economic minister to Washington and his administration secured a better deal than the 20% that Trump said he had given to Southeast Asian neighbor Vietnam. Both Indonesia and Vietnam are key markets for the transshipment of Chinese goods.
Kuwait Times
4 days ago
- Business
- Kuwait Times
Indonesia hails ‘new era' with US after Trump trade pact
Trump slashes tariffs from 32% to 19% after trade deal JAKARTA: Indonesia's president on Wednesday hailed a 'new era' of trade relations with the United States, after Donald Trump said he would slash tariffs faced by Southeast Asia's biggest economy from 32 percent to 19 percent. The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals, as countries sought talks with Washington to avoid the US president's threatened tariffs ahead of an August 1 deadline. 'I had a very good call with President Donald Trump. Together, we agreed and concluded to take trade relations between Indonesia and the United States into a new era of mutual benefit,' President Prabowo Subianto wrote on Instagram. Prabowo confirmed the new tariff rate after landing back in Indonesia from Europe. 'We agreed... the tariffs to be lowered from 32 (percent) to 19 (percent),' he told reporters, adding he could visit Washington in September or October. Prabowo, a populist former general, posted pictures of himself laughing on the phone with Trump, but did not give any specifics about their trade deal. Prabowo's presidential spokesperson confirmed the 19 percent rate and said it was struck after direct negotiations. 'It is an extraordinary negotiation conducted directly by our president with President Donald Trump,' spokesperson Hasan Nasbi said, adding that the deal was 'progress that cannot be called small'. Trump said the rate reduction was in return for significant purchase commitments from Jakarta, including a pledge to buy 50 Boeing jets. Indonesia has committed to spending billions to increase energy, agriculture and merchandise imports from the United States. Trump and Prabowo have developed a warm relationship since the US leader first clinched the presidency in 2016. Washington invited then-defence minister Prabowo to visit in 2020, lifting a de facto visa ban, which had been in effect over alleged crimes committed during the reign of Indonesia's late dictator Suharto. Significant risk After Trump announced the tariffs in April, Prabowo sent his top economic minister to Washington, and also suggested that Trump was maybe helping Jakarta by causing it to rethink its trade surplus with the world's top economy. Data from the US Trade Representative office shows Washington's goods trade deficit with Indonesia was $17.9 billion in 2024, up 5.4 percent from the year before. The deal struck with Indonesia would be slightly better than the 20 percent given to Southeast Asian neighbor Vietnam. Both Indonesia and Vietnam are key markets for the shipment of Chinese goods. Trump said the deal with Indonesia would include a penalty for goods transiting Indonesia from China. But experts said the Indonesia pact appeared one-sided. 'The 19 percent tariff on Indonesian exports to the US, while the US can enjoy 0 percent, actually poses a significant risk to Indonesia's trade balance,' said Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies. 'Do not be too reliant on exports to the US, because the result of the tariff negotiation is still detrimental to Indonesia's position.' — AFP
