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Chinese automaker BYD will begin its local production of its electric cars in Indonesia starting in 2026, according to Investment Minister Rosan Roeslani. BYD, which made its Indonesia debut last year, is setting up a production plant in Subang, West Java. The company has purchased 126-hectare land in the Subang Smartpolitan industrial estate, in a deal with the publicly-listed construction firm Surya Semesta Internusa. BYD started with 108 hectares of land but had just bought an additional 18 hectares in the last quarter.   Source : https://jakartaglobe.id/business/byd-to-begin-production-in-indonesia-next-year

Global demand for ocean freight container shipping reached a record 15.9 million TEU, driven by surging Chinese exports, which accounted for 39% of global container volumes. The increase is fueled by factors such as  frontloading  ahead  of  the  peak  season  and  challenges  like  the  Red  Sea  conflict,  forcing  longer  shipping routes around Africa. Fronthaul trades, particularly to North Europe and the U.S., experienced sharp demand growth, with spot rates rising by up to 150%. The impact of the demand surge varies across markets. While backhaul trades remain relatively stable due to spare capacity, major fronthaul routes feel the strain, with carriers prioritizing high-revenue trades over smaller ones. This has led to reduced capacity and rising spot rates on secondary trades, leaving shippers scrambling for space and paying premiums. Increased TEU-miles, up 17.9% globally, reflect the longer sailing distances, exacerbating port congestion in Asia and Europe. Despite new ships entering the market and improvements in Singapore’s congestion, the situation remains constrained, with no immediate resolution in sight for returning to the Suez Canal routes. Looking ahead, while frontloading has driven recent demand, businesses may soon draw down on existing inventories, potentially reducing pressure. However, continued port congestion and capacity redeployments will keep shippers navigating turbulent conditions in the near term. Understanding the evolving demand-supply dynamics and closely monitoring the market are essential for businesses to adapt to these ongoing challenges and make informed decisions.   Source : https://www.xeneta.com/blog/understanding-the-impact-of-record-breaking-global-demand-in-ocean-container-shipping

The Indonesian Trade Ministry targets export growth to reach 9.64 percent in the next five years to support President Prabowo Subianto's target of achieving 8 percent economic growth. Head of Trade Policy Agency Fajarini Puntodewi said the World Bank and the International Monetary Fund (IMF) have predicted that global economic growth will reach 3.2 percent next year. This figure is down from the previous prediction of 3.3 percent, but up from this year's forecast of 3.1 percent. Indonesia's economic growth is also predicted to slightly increase from 5 percent this year to 5.1 percent next year. With the target of 8 percent economic growth, the Ministry of Trade has conducted calculations. Fajarini said the institution has set the export growth target at 7.1 percent with a value of US$294.45 billion next year. The economy is targeted to grow by 5.6 percent this year. In  four  years,  exports  are  targeted  to  grow  by  7.09  percent  or  the  equivalent  of  US$315.31  billion;  7.89 percent or US$340.20 billion; 8.77 percent or US$370.04; and 9.64 percent or US$405.69 billion. Meanwhile, economic growth is sequentially targeted to increase from 5.06 percent to 5.79 percent in 2026; 6.53 percent in 2027, 7.26 percent in 2028, and 8.00 percent in 2029.   Source : https://en.tempo.co/read/1943068/indonesia-targets-9-64-percent-export-growth

China's foreign goods trade increased by 4.9% year-on-year to reach 39.79 trillion Yuan ($5.49 trillion) in the first 11 months this year, demonstrating stable growth and ongoing structural improvements. According to the General Administration of Customs (GAC), exports rose 6.7 percent year-on-year to reach 23.04 trillion Yuan, while imports edged up 2.4 percent year-on-year to reach 16.75 trillion Yuan. Thanks  to  a  package  of  supportive  policies  rolled  out  since  September,  the  country's  foreign  trade  volume registered a 1.2 percent increase year-on-year in November alone in Yuan-denominated terms totaling 3.75 trillion Yuan, with the monthly foreign trade volume maintaining growth for eight consecutive months. In particular, the country's exports surged by 5.8 percent year-on-year, according to the GAC. In recent years, China's exports of high-tech and high-added-value products have continued to gain impetus. According to the GAC, machinery and electronic products accounted for nearly 60 percent of the country's total exports between January and November, with exports of automatic data processing equipment and com- ponents, integrated circuits, and cars all posting double-digit growth. In  the  first  11  months,  foreign  trade  between  China  and  its  major  trade  partners  maintained  stable  growth. ASEAN held its position as China's largest trading partner, with bilateral trade reaching 6.29 trillion Yuan, up 8.6 percent from a year earlier, representing 15.8 percent of the country's total foreign trade. It was followed by the EU  with  trade  standing  at  5.09  trillion  Yuan,  accounting  for  12.8  percent  and  the  US  at  4.44  trillion  Yuan, accounting for 11.2 percent.   Source : https://www.globaltimes.cn/page/202412/1324716.shtml

Indonesia and Canada are expected to ease a huge chunk of the tariffs on their bilateral trade in goods starting in 2026 as Jakarta hopes to narrow its trade deficit with Ottawa, according to a minister. Both countries inked a joint ministerial statement that marked the substantive conclusion of the Comprehensive Economic Partnership Agreement (CEPA) -- about three years after the trade deal negotiations began. There are still many steps ahead before the deal can enter into force, including the so-called legal scrubbing process in which lawyers would review the text. Both countries also need to sign and ratify the treaty for it to come into effect. Trade Minister Budi Santoso told reporters that Indonesia and Canada would sign the CEPA in mid-2025 with a target to implement the trade pact the following year. The CEPA deal will grant Indonesia a trade liberalization that covers up to 90.5 percent of the import tariffs for its goods entering the Canadian market. This is equivalent to $1.4 billion worth of trade. Bilateral trade in services will be subject to preferential treatment. The deal will also facilitate investments in agricultural and manufacturing sectors. “The Indonesia-Canada CEPA will be implemented in 2026. Some Indonesian goods that will get prioritized access to the Canadian market include paper products, processed food, edible bird’s nest, and palm oil,” Budi told reporters in Jakarta. Indonesia banks on the CEPA to have a more balanced trade with Canada. Government data shows Indonesia’s deficit with Indonesia has dropped from $1.7 billion in 2022 to $846.8 million the following year. The annual bilateral trade totaled $3.4 billion in 2023, down from around $4.3 billion posted the previous year.    Source : https://jakartaglobe.id/business/indonesia-canada-to-significantly-ease-trade-barriers-in-2026

The container shipping market is poised for a promising period, bolstered by robust demand and market dynamics. According to Intermodal's latest report, the sector remains strong, driven by heightened U.S. imports ahead of the holiday season and fears of dockworker strikes. These factors, combined with frontloading in response to potential trade policy changes under Trump's presidency, have increased freight rates. Similarly, intra-Asia trade, particularly between Japan, China, and South Korea, is thriving due to strong consumer demand and manufacturing activity. The ongoing supply chain disruptions in the Red Sea are also influencing market conditions. Over 700 vessels have rerouted via the Cape of Good Hope, sustaining elevated freight rates. However, a resolution to these disruptions and a boost in Suez Canal transits could lower rates and shift market dynamics, impacting the 2025 outlook. Environmental regulations remain a critical focus, with the Hong Kong Convention for ship recycling coming into effect in June 2025. This is expected to enhance demolition activity and enforce sustainable practices in shipbreaking yards. Additionally, slower vessel speeds to meet emission standards may absorb some active tonnage, balancing the market. Freight rates have slightly declined in smaller vessel segments, with Eco-design 1,750 TEU feeder vessels now earning $25,000/day, down from a peak of $32,000/day in July 2024. Conversely, larger vessels  like  Neo-Panamaxes  have  seen  rates  rise  to  $97,000/day,  reflecting  limited  availability  and continued supply chain challenges. Overall, the market's trajectory appears positive, although developments in supply chain disruptions and environmental policies will shape its future.   Source : https://www.hellenicshippingnews.com/container-shipping-riding-high-ahead-of-holiday-season/

Indonesia retains its economic resilience, as reflected in the Indonesia Economic Survey conducted by the Organization for Economic Co-operation and Development (OECD), Minister of Finance Sri Mulyani Indrawati stated. Projections suggest Indonesia will maintain an economic growth trajectory of around five percent by this year's end, propelled by robust domestic consumption, sustained investment, and a dynamic manufacturing sector, particularly through industrial downstream strategies. On  the  other  hand,  inflation  was  under  control  at  1.71  percent  as  of  October  2024,  and  the  trade surplus  lasted  for  54  consecutive  months.  These  achievements  are  the  indicators  of  Indonesia's economic fundamentals and strengths. The launch of the 2024 OECD Indonesia Economic Survey is expected to provide valuable insights for  Indonesia  in  continuing  its  economic  reform  agenda  and  realizing  its  goal  as  an  inclusive  and developed high-income country.

The report shows that October U.S. container imports were 2,494,635 twenty-foot equivalent units (TEU), marking the fourth consecutive month of volumes exceeding 2.4 million TEUs, a threshold that has historically strained U.S. maritime logistics. At seven of the top 10 U.S. ports, transit time delays increased in October, including at the top five East and Gulf Coast ports where port operations were disrupted by the three-day International Longshoreman’s Association (ILA) strike at the beginning of the month. The October update of the logistics metrics monitored by Descartes underscores the robust performance of container imports throughout 2024; however, elevated volumes, increasing transit time delays at top ports, and the ongoing conflict in the Middle East may put pressure on global supply chains throughout the balance of the year.