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Tesla secured a $5 billion nickel deal with Indonesia, home to the world's largest nickel reserves, essential for the green transition. Indonesia, leveraging this resource, has boosted its economy but faces environmental and market challenges. Under President-elect Prabowo Subianto, a potential ban on refined nickel exports may push manufacturers to build local factories. Companies like LG and Hyundai are already establishing facilities, positioning Indonesia amidst the U.S.-China rivalry for resources. China has heavily invested in Indonesia’s metals sector, making it a critical player in the global supply chain. Despite this, Indonesia maintains neutrality, aiming to supply commodities to both superpowers.   Source : https://fortune.com/asia/2024/06/17/indonesia-nickel-mining-refined-exports-sustainability-electric-vehicle-batteries-tesla-china/

Thailand, sometimes referred to as the “Detroit of Asia” has a large automaker presence and is aggressively courting carmakers with EV incentives for manufactring and consumers. Thai government officials have touted talks with Tesla as Musk scouts locations for the next gigafactory — Thailand has been part of those deliberations for a few years, as has India, where Musk was scheduled to pay a recent visit before he canceled it, citing issues at Tesla that needed to be dealt with — he did pay a visit to China soon after. The Southeast Asia region, no doubt, holds the potential to provide Tesla with a sizeable customer base to diversify away from overreliance on Europe and the U.S., and a distinct option for manufacturing apart from its existing operations in China and interest in India.   Source : https://www.cnbc.com/2024/05/12/with-evs-the-detroit-of-asia-wants-to-be-china-hedge-for-automakers.html

Singapore continues to experience strong growth in container volumes, handling 16.9 million TEU in the first five months of 2024, according to the Maritime and Port Authority of Singapore (MPA), reports Singapore's Business Times. This  represents  a  7.7  per  cent  increase  compared  to  last  year.  The  MPA  added  that  major  container  lines, including CMA CGM and ONE, transported more container volumes through Singapore from January to May this year than the previous year.   Source : LFS Group Newsletter

  Industry Minister Agus Gumiwang Kartasasmita and four electric vehicle (EV) companies from China, namely Neta, Wuling, Chery, and Sokon, agreed to make Indonesia a production hub for environment-friendly vehicles for projected exports. The agreement to make Indonesia an export production hub was conveyed by EV entrepreneurs during the minister's working visit to Beijing, China. Kartasasmita explained that the EV company Neta, through PT Neta Auto Manufacturing Indonesia, plans to increase the Domestic Component Level (TKDN) by up to 60 percent by 2025, with a sales target of 10 thousand units per year.   Source : https://en.antaranews.com/news/316047/ri-china-agree-on-making-indonesia-an-export-production-hub

Motorcycle sales in Indonesia increased after a severe drop in April 2024. Based on data from the Indonesian Motorcycle Industry Association (AISI), there was a sales increase of 20.6 percent from April to May. April was the lowest point for sales throughout January-May 2024. Meanwhile, domestic sales were highest in January. Motorcycle sales during January-May 2024 reached 2,659,896 units. The figure is still lower than the same period of last year, which was 2,708,167 units.   Source : https://oto.detik.com/motor/d-7395753/penjualan-motor-mei-2024-naik-usai-merosot-parah-ekspor-cetak-rekor

China’s industrial profits between January and April period rose 4.3% year on year to 2.09 trillion yuan ($288.6 billion), official data showed Monday. This is unchanged from the 4.3% rise recorded in the first three months of this year. Industrial profit numbers include firms that have an annual revenue of at least 20 million yuan. China releases its industrial profits on a year-to-date rolling basis.   Source : https://www.cnbc.com/2024/05/27/asia-markets-australia-cpi-china-pmi-india-gdp.html

IATA is now forecasting that the global airline industry will this year exceed the profitability it achieved in 2023, although it notes that margins remain thin. Global airlines are expected to record a combined net profit of $30.5 billion this year, versus the $27.4 billion they are estimated to have recorded in 2023, IATA said at its AGM in Dubai on 3 June. That revised projection represents an improvement from the $25.7 billion that the industry association forecasted for 2024 in December 2023.   Source : FlightGlobal

China’s investment in Indonesia spans key sectors like manufacturing, transportation infrastructure, renewable energy, and EVs, bolstering bilateral ties. With Indonesia actively promoting projects to attract Chinese investors, both nations are set to deepen collaboration, fostering sustainable development and economic integration. During a bilateral meeting at the Merdeka Palace on September 8, 2023, Indonesian President Joko Widodo and Chinese Premier Li Qiang confirmed a new investment pledge of US$21.7 billion from China, covering sectors such as e-commerce, industry, agriculture, fisheries, science and technology, and innovation. This agreement builds on a previous US$44.89 billion commitment made in July of the same year. Additionally, the two countries agreed on the Financing Facilitation for the China-Indonesia “Two Countries, Twin Parks” initiative, further solidifying their economic ties under the Belt and Road Initiative (BRI). The manufacturing sector has become the primary recipient of Chinese investment in Indonesia. Chinese foreign direct investment (FDI) has played a significant role in supporting Indonesia’s dominance in the nickel market, with projects like the Morowali Industrial Park in Central Sulawesi, heavily backed by Chinese investment. Additionally, Chinese investors are rapidly entering Indonesia’s electric vehicle (EV) market, exemplified by companies like Yadea and BYD establishing manufacturing facilities, contributing to Indonesia’s industrial capacity and infrastructure development in downstream sectors aimed at creating value-added products. In January 2024, Chinese EV manufacturer BYD built a US$1.3 billion plant in the country. This new facility, with a capacity to produce 150,000 units annually, marks a significant boost to Indonesia’s burgeoning EV industry.   Source : Asean Briefing