News

Danish pharmaceutical giant Novo Nordisk has entered into an agreement with Indonesian state-owned firm Bio Farma to package insulin locally. Novo Nordisk, which produces half of the world’s insulin, will leverage its production expertise, while Bio Farma will use its local manufacturing facilities. This collaboration aims to enhance insulin accessibility and affordability in Indonesia. The success of this partnership could make Indonesia a magnet for global pharmaceutical companies seeking to establish operations in Southeast Asia. Effective execution of this large-scale project can bolster Indonesia’s reputation, attracting additional investments in biopharmaceutical research and development. This could position the country as a key player in the regional pharmaceutical industry.   Source : https://www.thailand-business-news.com/asean/indonesia/153492-indonesia-strengthens-pharma-sector-with-novo-nordisk-partnership

French liner CMA CGM informed that one of its containerships lost 44 containers at sea, while another 30 were damaged on the vessel due to adverse weather conditions off the coast of South Africa. The 2005-built, 17,859 teu CMA CGM Benjamin Franklin faced severe weather during a westbound voyage from Asia to Europe. Fortunately, there were no injuries to the crew, pollution, or damage to the vessel which remains fully seaworthy.  The ship was not the only victim of the strong winds that have plagued both the offshore and onshore parts of South Africa.   Source : LFS Group Newsletter

The Philippines is expected to be the fastest growing economy in Southeast Asia and second fastest in Asia over the next two years, according to the latest World Economic Outlook released by the International Monetary Fund. Based on the latest economic outlook update, the IMF maintained its six percent gross domestic product (GDP) growth forecast for the Philippines this year. If realized, the country’s economic growth would be the fastest among members of the Association of Southeast Asian Nations (ASEAN) and the second-fastest among selected Asian economies, following India’s seven percent. The  Philippines  is  projected  to  surpass  China  (five  percent),  Indonesia  (five  percent),  Malaysia  (4.4  percent), Kazakhstan (3.5 percent) and Iran (3.3 percent) in terms of GDP growth this year.   Source : https://www.philstar.com/business/2024/07/17/2370653/imf-philippines-growth-fastest-asean-2nd-asia

Indonesian Government has established a Semiconductor Ecosystem Development Task Force. This task force collaborates with the OECD and the US Department of State to conduct a study of the Indonesian semi-conductor ecosystem. There are several Cooperative Work Programs that were initiated for long-term investment and partnership opportunities to exploit the potential of renewable energy in Indonesia.   Source : https://asiatoday.id/read/potential-for-us-indonesia-collaboration-in-the-agricultural-biotechnology-nuclear-and-semiconductor-sectors

VinFast Auto has officially broken ground on its new electric vehicle assembly plant in Subang, West Java, Indonesia.  This  strategic  move  into  one  of  Southeast  Asia’s  most  promising  EV  markets  is  set  to  create numerous  job  opportunities  for  the  local  workforce,  underscoring  VinFast’s  commitment  to  expanding  its presence in the region and supporting Indonesia’s burgeoning electric vehicle industry. The  new  VinFast  assembly  plant,  located  in  the  emerging  industrial  hub  of  Subang,  represents  an  initial investment of around 200 million USD. The facility will have an annual capacity of 50,000 vehicles, and house several key production areas such as Body Shop, General Assembly Shop, Paint Shop and testing area, etc. Scheduled to commence operations in Q4 2025, the plant will produce right-hand drive versions of VinFast’s e-SUV models, including VF 3, VF 5, VF 6 and VF 7 for the Indonesian market.

The Panama Canal’s freshwater reservoirs are entering summer at close to normal levels, prompting the canal’s operator to increase the number of large ships moving through the waterway and allowing the ships to carry more cargo. The Panama Canal Authority (ACP) said in an advisory this week it will open one more booking slot for neo-Panamax vessels — the largest class of ships that can transit the canal — starting in August, bringing the total number of daily neo-Panamax transits to nine. In addition, the ACP said that it will add a booking slot for slightly smaller super-Panamax ships starting in the last week of July, bringing the total number of daily super-Panamax slots to 19. Overall, the Panama Canal will be able to handle 35 ships per day starting in August; that compares to 24 daily booking slots at the start of May.    Source : LFS Group Newsletter

Southeast Asia has emerged as a top choice for firms looking to diversify production away from China, including Chinese companies, amid escalating tensions between Washington and Beijing. This has spurred greater investments into the ASEAN bloc. Foreign direct investments into the ASEAN economies of Indonesia, Malaysia, Philippines, Thailand, Singapore and Vietnam rose to $236 billion in 2023 compared with an annual average of $190 billion between 2020 and 2022, OCBC economists said. The inflows mostly came from the U.S., Japan, European Union as well as Mainland China & Hong Kong.   Source : https://www.cnbc.com/2024/06/24/southeast-asia-is-the-top-choice-for-firms-diversifying-away-from-china.html

Thousands of BYD electric vehicles have finally arrived in Indonesia, marking its entry into the market dominated by Japanese, Korean, and European car manufacturers. Earlier this year, BYD announced plans to commence local production of electric vehicles in Indonesia by early 2026, with a $1.3 billion investment in a manufacturing plant capable of producing 150,000 units annually.   Source : https://jakartaglobe.id/business/byds-grand-entrance-thousands-of-chinese-electric-cars-enter-indonesian-market