Indonesia, China seal $10bn in deals on President Prabowo’s first overseas trip

Special Indonesia, China seal $10bn in deals on President Prabowo’s first overseas trip
Indonesian President Prabowo Subianto, center, applauds after presiding over a signing ceremony of cooperation documents between Indonesia and China during the Indonesia-China Business Forum in Beijing, on Nov. 10, 2024. (AP Photo)
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Indonesia, China seal $10bn in deals on President Prabowo’s first overseas trip

Indonesia, China seal $10bn in deals on President Prabowo’s first overseas trip
  • China is Indonesia’s largest trading partner and source of $7bn worth of investment
  • Prabowo will continue his first overseas tour to US, South America, UK, Middle East

Jakarta: Indonesian and Chinese companies signed business agreements worth more than $10 billion on Sunday, as the two countries agreed to strengthen ties during a state visit by President Prabowo Subianto to Beijing.

Prabowo on Sunday wrapped up the first stop of his first overseas tour since taking office last month. After China, he will head to the US before making his way to South America for the APEC and G20 summits, which will be followed by trips to the UK and the Middle East.

He and Chinese President Xi Jinping agreed to deepen ties on Saturday, elevating security to a fifth “pillar” of cooperation, on top of political, economic, maritime and people-to-people exchange. The two countries will hold a first-ever joint meeting of their foreign and defense ministers next year, according to a joint statement.

“Indonesia and the People’s Republic of China are committed to strengthening our friendship and furthering the prosperity of our two nations,” Prabowo wrote on X on Sunday.

Before leaving Beijing for Washington, Indonesia’s new leader presided over a ceremony between the Indonesian Chamber of Commerce and Industry and top Chinese corporations, during which they inked billions of dollars worth of deals on renewable energy, and health and food security, among other issues.

“The strong participation of Chinese businesses in Asia is an important element in close cooperation between our two countries. I have met the president and prime minister, where we agreed to continue this collaboration,” Prabowo said at the Indonesia-China Business Forum in Beijing, as reported by state news agency Antara.

“This is part of our synergy across all sectors, in education, business, industries, people-to-people … we are very optimistic about the prospects,” he added.

“We must give an example that in this modern age, collaboration — not confrontation — is the way for peace and prosperity.”

China, which was also Prabowo’s initial foreign destination as president-elect in April, is Indonesia’s biggest trading partner and the source of more than $7 billion of investment.

“The visit to China is significant because China currently supports Indonesia’s ambitious economic program through investment, including industrial downstreaming programs. China also supports various infrastructure projects … Prabowo has met Xi Jinping before and this visit strengthens the ties,” Dr. Ahmad Rizky Mardhatillah Umar, an Indonesian political researcher at the UK’s Aberystwyth University, told Arab News.

Economic and defense affairs appear to be a top priority for Prabowo for his overseas tour, which includes China and the US, the world’s two biggest economies.

“He's trying to balance and hedge between two sides,” Umar said. “He is trying to maximize economic benefits with China with trade and investment, and to bolster defense ties with the US for defense modernization.”

His choice of China as the first stop on his multi-country trip is likely a strategy to lure more investment from the US, said Teuku Rezasyah, an international relations expert from Padjadjaran University in West Java.

“This development will become an ammunition for Prabowo when he speaks with American businesses,” he said. “He’ll be able to say: If you want to make a comeback in Southeast Asia and be part of the economy, this is now the time.”

Prabowo is trying to establish his own legacy early on, Rezasyah added. Though the president has said he will continue the programs started by his predecessor, Joko Widodo, those are matters related to domestic affairs.

“He wants to give the international community some confidence that they’re dealing with the right person in their language because Prabowo speaks more than one international language,” Rezasyah said, referring to Prabowo’s ability to speak English, Dutch, French and German.

“So, he can easily convince the world.”


King Charles III and Kate attend remembrance events as both slowly return to duty

King Charles III and Kate attend remembrance events as both slowly return to duty
Updated 26 sec ago
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King Charles III and Kate attend remembrance events as both slowly return to duty

King Charles III and Kate attend remembrance events as both slowly return to duty

LONDON: King Charles III laid a wreath honoring fallen service personnel in central London on Sunday as the Princess of Wales looked on, in a further sign the royal family is slowly returning to normal at the end of a year in which two of the most popular royals were sidelined by cancer.
Remembrance Sunday is a totemic event in the UK, with the monarch leading senior royals, political leaders, including Prime Minister Keir Starmer and his eight living predecessors, and envoys from the Commonwealth countries in laying wreaths at the Cenotaph, the Portland stone memorial that serves as the focal point for honoring the nation’s war dead. It is held on the second Sunday of November to mark the signing of the armistice to end World War I “on the eleventh hour of the eleventh day of the eleventh month” in 1918.
After leading the nation in a two-minute silence, Charles, dressed in his Royal Navy uniform of the Admiral of the Fleet, laid a wreath of poppies at the base of the Cenotaph, honoring those who have died in conflicts since World War I.
His eldest son and the heir to the throne, William, left his own floral tribute — featuring the Prince of Wales’ feathers and a new ribbon in Welsh red.
Dressed in somber black, his wife, Kate, watched on from a balcony of the nearby Foreign, Commonwealth & Development Office, as is tradition. Queen Camilla, who would normally be standing next to the princess, was not present as she is recovering from a chest infection.
It is the first time since the start of the year that Kate is carrying out two consecutive days of public official engagements. On Saturday, she attended the Royal British Legion Festival Of Remembrance at the Royal Albert Hall.
Following the wreath-laying, around 10,000 veterans, including those who have fought in wars this century, notably in Afghanistan and Iraq, marched past the Cenotaph. With the passage of time, there were only a handful of World War II veterans present.
Charles’ ceremonial role as commander in chief of the armed forces is a holdover from the days when the monarch led his troops into battle. But the link between the monarchy and the military is still very strong, with service members taking an oath of allegiance to the king and members of the royal family supporting service personnel through a variety of charities. Charles and William both served on active duty in the military before taking up full-time royal duties.
“They are showing respect to us, as we’ve shown to them by serving,” said Victor Needham-Crofton, 91, an army veteran who served during the Suez Crisis of 1956 and later in Kenya.
Charles was diagnosed with an undisclosed form of cancer in February, forcing him to step away from public appearances for two months as he focused on his treatment and recovery. Just a few weeks later, Kate announced her own cancer diagnosis, which sidelined her for much of the year as she underwent chemotherapy.
The king has been in good form in recent months and recently completed a taxing trip to Australia and Samoa. Kate, who made her first post-diagnosis public appearance during the monarch’s birthday parade in June, is slowly returning to public duties.
Prince William reflected this week on the strain that the cancer scare has placed on the royal family.
“I’m so proud of my wife, I’m proud of my father, for handling the things that they have done,” William told reporters on Thursday as he wrapped up a four-day trip to South Africa. “But from a personal family point of view, it’s been, yeah, it’s been brutal.”
While the Cenotaph was the focus of the national remembrance service, communities throughout the UK held their own ceremonies on Sunday.
Needham-Crofton, who served with the Royal Inniskilling Fusiliers before a truck accident ended his military career, planned to attend a local service in Eastbourne on the south coast of England.
He has spent much of his time honoring veterans and trying to help them, including 20 years as a volunteer for the Taxi Charity for Military Veterans. Like some of his army tasks, raising cash was rather grueling as it involved standing in front of London subway stations collecting coins to help fund the group’s efforts.
“I like to respect all the veterans and do what I can for them,’’ he told The Associated Press. “It’s a brotherhood really. Even if you don’t know a veteran that you meet, you feel a kinship toward them. That is very important to me. I shall be like that for the rest of my life.’’


UK minister rules out using Nigel Farage as link to Trump

UK minister rules out using Nigel Farage as link to Trump
Updated 10 November 2024
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UK minister rules out using Nigel Farage as link to Trump

UK minister rules out using Nigel Farage as link to Trump
  • Nigel Farage, the Brexit-campaigner and self-described troublemaker, is a friend of Donald Trump
  • He has offered to act as an interlocutor between the British government and the Trump administration

LONDON: A British minister said on Sunday that the government is unlikely to ask the Reform party leader Nigel Farage to act as an intermediary to deal with US President-elect Donald Trump.
Farage, the Brexit-campaigner and self-described troublemaker, is a friend of Trump and was at his election victory party in Florida.
He has offered to act as an interlocutor between the British government and the Trump administration, which takes power in January.
The Treasury minister Darren Jones said on Sunday that the government would likely reject that offer.
“I think that’s probably unlikely,” he told Sky News, saying Farage, who is a member of parliament, should probably spend his time with his constituents rather than in the United States.
Governments around the world are trying to figure out how to deal with Trump, who has promised to increase tariffs and whose first four-year term was characterized by a protectionist trade policy and isolationist rhetoric, including threats to withdraw from NATO.
Starmer delayed starting a recruitment process for a new ambassador to Washington until the result of the US election was known.
The role will be crucial in the coming years in navigating Britain’s relationship with the Trump administration.
Farage said at the weekend he has “a great relationship” with Trump and would be willing to act as an intermediary for the government because it is in the national interest.


Indian soldiers battle Kashmir militants, one killed

Indian soldiers battle Kashmir militants, one killed
Updated 10 November 2024
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Indian soldiers battle Kashmir militants, one killed

Indian soldiers battle Kashmir militants, one killed
  • Police say two separate gunfights taking place in Zabarwan and Baramulla areas of Indian-administered Kashmir
  • Kashmir has been divided between nuclear-armed rivals India and Pakistan since their partition at end of British rule in 1947

NEW DELHI: Indian troops on Sunday were battling with gunmen in Indian-administered Kashmir with one suspected militant killed, the army said, the latest violence in the long-running insurgency in the disputed Muslim-majority territory.
Police said two separate gunfights were taking place in the Himalayan region, with fighting reported in both the Zabarwan and Baramulla areas.
“One terrorist has been neutralized by the security forces,” the army’s Chinar Corps said, a term they use indicating a gunman had been killed.
Kashmir has been divided between nuclear-armed rivals India and Pakistan since their partition at the chaotic end of British rule in 1947, and both countries claim the territory in full.
India has at least 500,000 troops deployed in Kashmir in a bid to end a conflict that has killed tens of thousands of civilians, soldiers and militants since 1989.
Militant groups demand either independence or its merger with Pakistan.
New Delhi regularly blames Pakistan for arming militants and helping them launch attacks, an allegation Islamabad denies.
Last week, an attacker hurled a grenade at a busy market in the main city of Srinagar, wounding 12 people.
Attacks since October have included gunmen launching an ambush on an army convoy, as well as firing on a construction camp, killing seven people.
On Wednesday, Kashmir’s newly-elected regional assembly passed a resolution demanding New Delhi restore the territory’s partial autonomy, canceled in 2019 by Prime Minister Narendra Modi’s Hindu nationalist government.


Indian soldiers battle Kashmir rebels, one killed

Indian soldiers battle Kashmir rebels, one killed
Updated 10 November 2024
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Indian soldiers battle Kashmir rebels, one killed

Indian soldiers battle Kashmir rebels, one killed
  • Police said two separate gunfights were taking place in the Himalayan region
  • Kashmir has been divided between rivals India and Pakistan since their partition in 1947

NEW DELHI: Indian troops on Sunday were battling with gunmen in Kashmir with one suspected rebel killed, the army said, the latest violence in the long-running insurgency in the disputed Muslim-majority territory.
Police said two separate gunfights were taking place in the Himalayan region, with fighting reported in both the Zabarwan and Baramulla areas.
“One terrorist has been neutralized by the security forces,” the army’s Chinar Corps said, a term they use indicating a gunman had been killed.
Kashmir has been divided between nuclear-armed rivals India and Pakistan since their partition at the chaotic end of British rule in 1947, and both countries claim the territory in full.
India has at least 500,000 troops deployed in Kashmir in a bid to end a conflict that has killed tens of thousands of civilians, soldiers and rebels since 1989.
Rebel groups demand either independence or its merger with Pakistan.
New Delhi regularly blames Pakistan for arming militants and helping them launch attacks, an allegation Islamabad denies.
Last week, an attacker hurled a grenade at a busy market in the main city of Srinagar, wounding 12 people.
Attacks since October have included gunmen launching an ambush on an army convoy, as well as firing on a construction camp, killing seven people.
On Wednesday, Kashmir’s newly-elected regional assembly passed a resolution demanding New Delhi restore the territory’s partial autonomy, canceled in 2019 by Prime Minister Narendra Modi’s Hindu nationalist government.


Asia, the world’s economic engine, prepares for Trump shock

Asia, the world’s economic engine, prepares for Trump shock
Updated 10 November 2024
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Asia, the world’s economic engine, prepares for Trump shock

Asia, the world’s economic engine, prepares for Trump shock
  • Trump vowed during campaign to slap 60 percent tariffs on Chinese goods entering US 
  • Move could impact Southeast Asia where production chains are closely linked to China 

TOKYO: Some Asian countries stand to gain if US president-elect Donald Trump pushes ahead with his promised massive tariffs on China and triggers a new wave of factory relocations to the rest of the region.
But a trade war between the world’s biggest economies would also destabilize markets everywhere, with Asia — which contributes the largest share of global growth — the most affected.
Trump, who won a crushing presidential victory this week, vowed during his campaign to slap 60 percent tariffs on all Chinese goods entering the United States in an attempt to balance trade between the two nations.
Analysts however question whether the new president will stick to such a high figure, and dispute the blow such tariffs could inflect on the Chinese economy, estimating GDP could be lowered by between 0.7 percent and 1.6 percent.
The cooling effect would also make waves throughout Southeast Asia, where production chains are closely linked to China and enjoy significant investment from Beijing.
“Lower US demand for Chinese goods due to higher tariffs on China will translate into lower demand for ASEAN exports, even if there aren’t US tariffs levied directly onto those economies,” said Adam Ahmad Samdin, of Oxford Economics.
Indonesia is particularly exposed through its strong exports of nickel and minerals, but China is also the top trading partner of Japan, Taiwan and South Korea.
In addition to China, Donald Trump has also warned of an increase of 10 to 20 percent on duties for all imports, as part of his protectionist policies and fixation that other countries take advantage of the US.
“The extent of these effects likely depends on the direct exposure of each economy to the US,” said Samdin, who added that America accounts for a 39.1 percent share of Cambodian exports, 27.4 percent from Vietnam, 17 percent from Thailand and 15.4 percent from the Philippines.
Trump first slapped China with heavy tariffs in 2018 during his first administration, leading to the emergence of “connector countries,” through which Chinese companies passed their products to avoid American taxes.
Those countries could be in the line of fire now.
“Vietnam’s electronics exports to the US could also be targeted by Trump, in a bid to halt the diversion of Chinese electronic products to the US via Vietnam since 2018,” said Lloyd Chan, a senior analyst at MUFG, Japan’s largest bank.
“This is not inconceivable. Trade rewiring has notably gained traction in the region’s electronics value chain.”
“India could itself become a target of protectionist measures by the US due to the large share of Chinese components in Indian products,” added Alexandra Hermann, an economist with Oxford Economics.
Trump could also impose higher tariffs on Indian goods in sectors such as “automobiles, textiles, pharmaceuticals and wines, which could make Indian exports less competitive in the US,” said Ajay Srivastava of the New Delhi-based Global Trade Research Initiative.
A trade war would be dangerous for India, said Ajay Sahai, director of the Federation of Indian Export Organizations.
“Trump is a transactional person. He may target higher tariffs on certain items of Indian exports so he can negotiate for lower tariffs for US products in India,” he told AFP.
In the medium term, these negative effects could be counterbalanced by establishing factories outside China to escape the fallout.
The “China+1” strategy initiated during Donald Trump’s first term saw production shifts to India, Malaysia, Thailand and Vietnam.
With its geographical position and cheap skilled labor, Vietnam has already been one of the main beneficiaries.
The country has notably received investments from Taiwanese Apple subcontractors Foxconn and Pegatron and South Korea’s Samsung, becoming the second-largest exporter of smartphones in the world behind China.
“The likelihood increases that even more businesses will want to... have a second, or third, production base outside China,” said Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam.
Chinese firms themselves are investing massively from Vietnam to Indonesia in sectors including solar, batteries, electric vehicles and minerals.
“American companies and investors are very interested in opportunities in Vietnam and this will continue under the incoming Trump Administration,” said Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi.
But whether it is low-end or high-tech production, China’s competitive advantage in terms of price, scale and quality is difficult to reproduce, warns Nomura bank.
A reorganization of production chains could lead to a “loss of efficiency” and increased prices, “with a negative impact on global growth,” Thomas Helbling, deputy director of the IMF for Asia, recently explained to AFP.
Asian countries could therefore gain export market share but ultimately see their situation deteriorate amid weakening global demand.