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Indonesia launched two copper smelters, valued at around Rp 77 trillion ($5 billion), belonging to Amman Mineral Internasional in West Nusa Tenggara and Freeport Indonesia in East Java. The smelter has an input capacity of 1.7 million tons of copper concentrate, producing approximately 650,000 tons of copper cathodes annually, along with 50 tons of gold and 210 tons of silver. The facility started operations on June 27 and is expected to reach full capacity by December 2024. The project, which includes a precious metal refinery, represents an investment of Rp 21 trillion (approximately $1.4 billion). The new smelter, covering 272 hectares, is expected to produce its first copper cathode by the end of 2024, with an annual capacity of 900,000 tons of copper concentrates, and outputs of 220,000 tons of copper cathodes, 18 tons of gold, 55 tons of silver, and 850,000 tons of sulfuric acid byproducts.   Source : https://jakartaglobe.id/business/president-jokowi-launches-freeport-and-amman-5-billion-copper-smelters-as-tenure-nears-end

Alphaliner’s report stated that margins for the nine largest liner operators topped 20% in Q2 2024, the highest since the Covid-19 pandemic, as the tonnage overhang was absorbed by the Red Sea crisis. As in the early days of the pandemic, carriers with strong spot exposure to Far East exports performed best in the latest quarter. Taiwanese operator Evergreen Marine Corporation (EMC) has the highest margin, at 30.7%, after operating profit of US$1 billion. Effective cost control and raising revenue has enabled EMC to achieve the best margins among all operators for half of the last 14 quarters. EMC’s compatriot peer Wan Hai Lines has the second-best margin, at 28.5%, after overturning a loss-making 2023 to stay profitable in 2024 to date. Alphaliner opined that Wan Hai’s newbuilding spree during the pandemic was well-timed for the resurgent market amid the Red Sea crisis, which has absorbed excessive vessel supply due to detours round the Cape of Good Hope. Wan Hai has taken delivery of 40 ships of 265,000 TEU over the past two years and with a rising cost base, would have faced a very different set of figures without the impact of the Red Sea crisis. HMM and Yang Ming were jointly, the third best performer where margins were concerned, recording margins of 26.9% in the quarter. For the third straight quarter, Maersk had the lowest margins among major operators, with a 5.6% margin in Q2 2024.   Source : Alphaliner

Indonesian launched construction for a new line on Jakarta's mass rapid transit (MRT) system, funded by a loan of nearly $1 billion from Japan. Paralyzed by one of the world's worst traffic jams, Jakarta is home to more than 10 million, with three times the number live in surrounding towns. Expected to be completed by 2031, the new line will run 25 km between the city of Bekasi, on Jakarta's eastern border, to its west.   Source : https://japantoday.com/category/business/indonesia-kicks-off-japan-funded-expansion-of-capital's-train-network

The middle class is a key driver of Indonesia's economy, with diverse consumption patterns, primarily on food, housing, and vehicles. Most middle-class workers hold formal jobs or run businesses. However, maintaining the resilience of the middle class is becoming increasingly challenging. Indonesia's middle-class population has been shrinking in recent years, from 53.83 million in 2021 to 47.85 million in 2024, suggesting economic pressures that make this group vulnerable to decline. The government continues to focus on infrastructure development, including toll roads, airports, and digital infrastructure, to boost connectivity and mobility. There is also an emphasis on ensuring that policies support not only the extremely poor but also the middle class, which is often overlooked. With these initiatives, the middle class is expected to remain a key pillar of Indonesia’s economic stability and growth.   Source : https://en.antaranews.com/news/326039/middle-class-resilience-key-to-sustaining-indonesias-economy

COSCO Shipping, the world’s fourth largest containerline, has ordered a dozen 14,000 teu ships at a sister firm in Jiangsu province rounding off one of the busiest months for global containership orders ever. The state-run line is paying $2.15bn for the methanol dual-fuelled ships which will be built at COSCO Shipping Heavy Industry Yangzhou. COSCO, the world’s largest shipowner, is a big believer in methanol as a future fuel. Last year it teamed with three other state-run firms – State Power Investment Corporation Limited (SPIC), Shanghai International Port Group (SIPG), and China Certification & Inspection Group (CCIC) – to develop a green methanol industrial chain which will comprise the production, transportation, refuelling, and certification of green methanol for ships.   Source : https://splash247.com/cosco-orders-a-dozen-14000-teu-ships

Fearing another container spot rate crash, ocean carriers have blanked a number of export sailings from Asia to Europe and Asia to the US, prior to the Chinese national holiday in early October. In  shipper  advisories,  Maersk  said  it  was  “looking  to  balance  the  network  in  light  of  forecast  reductions  in demand”, while its 2M alliance partner, MSC, said it would adjust capacity in weeks 39 and 40, “due to an anticipated slowdown in demand”. Notwithstanding carriers deploying their capacity management tools on the transpacific, the looming threat of a US east coast dock strike in October, as well as the roll-out of new import tariffs, should underpin rates on the trade, despite softer demand and the undercutting of rates by new, small entrants to the market. . Source : LFS Group Newsletter

Emirates announced a second daily A380 service between Bali and Dubai. Set to serve the travel demands to Bali with two A380 flights, Emirates plans to offer at least 2,600 additional seats each week to and from the Island of Gods.   Source : https://indonesiaexpat.id/travel/emirates-to-operate-second-airbus-a380-on-bali-dubai-route-in-september

Global trade has shown signs of recovery and growth, with significant contributions from emerging markets and specific sectors. This growth has been primarily fueled by positive trade dynamics in the United States and developing countries, particularly in sectors related to green energy and artificial intelligence. China, India, and the US have seen notable increases in their exports, contributing to this positive trend. China now  account  for  a  substantial  share  of  global  exports,  driven  by  their  competitive  advantages  in  low-cost production and accommodative government policies. This shift has resulted in a higher proportion of unfinished goods, components, and services in global trade, which now make up 70 percent of all trade. Emerging  markets  have  been  playing  an  increasingly  significant  role  in  global  trade.  Indonesia's  export performance  is  projected  to  remain  strong,  particularly  in  sectors  such  as  electronics,  automotive,  and processed  food.  However,  the  decline  in  commodity  prices,  especially  for  palm  oil  and  coal,  may  dampen overall export revenues.   Source : https://jakartaglobe.id/opinion/global-and-indonesias-trade-prospect-in-the-2nd-half-of-2024