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China’s long-running property slump is worsening as the country’s population decline adds a new layer of strain. Demand for new homes in urban areas is projected to remain below 5 million units per year, far from the 20 million-unit  peak  in  2017.  Goldman  Sachs  warns  that  a  declining  population,  stagnant  incomes,  and  a  glut  of unsold homes are eroding buyer and investor confidence. In May, new home prices dropped at their fastest pace in seven months, and sales in major cities continued to decline.

Following over a week of mass cancellations and rerouted flights due to the Israel-Iran conflict and U.S. strikes on Iranian nuclear facilities, some international airlines are now cautiously resuming services in the Middle East. With  the  Middle  East  serving  as  a  critical  corridor  between  Europe  and  Asia—especially  as  Russian  and Ukrainian airspace remains off-limits—the region's stability is vital for global aviation.

Garuda Indonesia plans to rebuild its fleet to 120 aircraft by 2030, boosted by a USD 407 million shareholder loan from the country’s sovereign wealth fund, Danantara Indonesia. The funding marks a major step in the airline’s post-crisis recovery after years of losses and a painful restructuring. Despite the progress, the airline remains in the red, posting a USD 75 million net loss in 2024 and an additional USD 78 million loss in the first quarter of 2025. The fresh funds are expected to help Garuda reassert itself as a serious competitor in the region’s aviation sector.   Source : https://jakartaglobe.id/business/garuda-indonesia-targets-120-aircraft-by-2030-following-407m-capital-boost

Contemporary Amperex Technology Co. Limited (CATL) officially launched its massive electric vehicle (EV) battery project, known as the Dragon Project, in Karawang, Indonesia. The project is a joint venture with Indonesia Battery Corporation (IBC) and carries a total investment value of USD 6 billion, or approximately IDR 96 trillion. The  initiative  is  driven  by  a  consortium  involving  CATL,  Brunp,  and  Lygend  through  their  joint  company Ningbo Contemporary Brunp Lygend Co. Ltd (CBL). Together with IBC and PT Aneka Tambang Tbk (Antam), they are developing the project across the entire EV battery value chain—upstream (mining), midstream (processing), and downstream (production and recycling).

China has sharply increased its exports to Southeast Asia in early 2025, with Vietnam, Thailand, and Indonesia seeing  double-digit  growth  in  shipments,  as  Chinese  firms  shift  trade  routes  and  investments  to  offset  U.S. tariffs. From January to May, exports rose 18.8% to Vietnam, 20.9% to Thailand, and 16.8% to Indonesia—significantly outpacing the 6% global average growth in Chinese exports. Analysts attribute this pivot to the need for Chinese manufacturers to navigate around high U.S. import duties. By exporting more to Southeast Asian nations—where many Chinese-funded factories now operate—China is finding  alternative  production  and  distribution  hubs  that  allow  goods  to  be  assembled  locally  and  sold  both regionally and globally, including to the U.S. China's increasing integration with Southeast Asian economies reflects not just a trade rerouting strategy but deeper economic ties. Countries like Vietnam and Thailand host major assembly plants producing items such as cars and smartphones, with substantial Chinese backing. While some suspect that part of this trade shift is an effort to mask Chinese origins of goods, experts note that the involvement of local content in production helps meet international rules of origin, making the exports legally claimable as Southeast Asian.

Indonesia’s growing trade deficit with China—reaching USD 6.9 billion in early 2025—is sparking calls for renewed industrial resilience and regional cooperation. As Chinese exports surge in sectors like steel and machinery, experts highlight the urgent need for strategic safeguards to protect local industries and prevent social fallout. The situation presents an opportunity for Indonesia and ASEAN to push for fairer trade terms, enhance internal market integration, and reinvest in domestic manufacturing strength.   Source : https://asiatimes.com/2025/06/red-flags-rising-over-chinas-trade-surplus-with-indonesia

Indonesia aims to finalize two major trade agreements by 2025—one with the European Union (I-EU CEPA) and another with the Eurasian Economic Union (I-EAEU FTA)—in a push to strengthen global market access. Trade Minister Budi Santoso confirmed that the government is working to wrap up negotiations this year, with the agreements expected to significantly benefit businesses and the public. Talks for the EU pact began in 2016 and are now heading into their 19th negotiation round this July in Bogor. Meanwhile, discussions with the Eurasian bloc, which began in late 2022, recently completed a fourth round in Armenia. Both deals are seen as pivotal for enhancing Indonesia’s competitiveness, especially in light of shifting global trade dynamics. The trade pacts are designed to reduce tariff and non-tariff barriers on Indonesian exports like palm oil, fishery products, textiles, and electronics. They are also expected to open alternative export channels amid pressures from U.S. tariff policies.   Source : https://en.antaranews.com/news/319779/indonesia-targets-2025-deal-on-eu-and-eurasian-trade-agreements

A US federal court has blocked former President Donald Trump’s sweeping tariff plan announced on 2 April, ruling that his use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs was unlawful. The court found that the economic threats cited by the White House did not meet the “unusual and extraordinary” criteria required under the act, making the tariffs illegal. The ruling follows legal challenges brought by the Liberty Justice Center and a coalition of US states including Oregon, Arizona, and New York. While tariffs based on IEEPA must be removed, other tariffs imposed under separate laws, such as steel and aluminum tariffs under the Trade Expansion Act of 1962, remain unaffected. The White House has filed an appeal, meaning the tariffs will remain in place while the case proceeds through the courts, potentially reaching the Supreme Court. The ruling injects uncertainty into ongoing trade negotiations  with  major  partners  like  the  EU,  China,  Japan,  and  India,  as  the  president’s  leverage  using  tariffs  faces limits. Despite this setback, Trump has other legal tools available, such as sections 122 and 301 of the Trade Act of 1930 and section 232 of the Trade Expansion Act, which grant the president powers to intervene in trade policy, though usually with slower implementation. The ruling also impacts Trump’s economic strategy, which relied on tariff revenues to offset recent tax cuts, raising concerns over increased federal debt.