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President  Prabowo  emphasized  the  significance  of  this  state  visit  as  a  testament  to  Indonesia’s commitment  to  strengthening  friendship  and  cooperation  with  China.  “This  visit  reflects  our  deep respect for the People's Republic of China and our commitment to maintaining and advancing our countries' friendship and partnership,” he said. President Prabowo’s agenda in China also includes meetings with President Xi Jinping and Premier Li Qiang to discuss new avenues for reinforcing the Indonesia-China strategic partnership, particularly in economic, trade, and investment sectors. American President Joe Biden has invited Prabowo on a state visit, making the US the second stop in the international tour. Prabowo will then travel to Peru for the leaders’ gathering of the Asia Pacific Economic Cooperation (APEC) and fly off to Brazil for the G20 Summit. British Prime Minister Keir Starmer will also host Prabowo on a state visit to the UK afterward. Prabowo also plans on wrapping up the tour by visiting Middle Eastern nations without going into any details on which countries he plans on setting foot in.

China's  recent  stimulus  efforts  have  caught  global  attention,  shifting  the  conversation  around  economic prospects.  By  introducing  monetary  easing,  fiscal  expansion,  support  for  home  buyers,  and  capital  injections, Beijing has excited markets. However, for these measures to have lasting impact, concrete goals and outcomes need to follow, similar to Mario Draghi’s approach during the eurozone crisis. China’s  economic  slowdown,  while  concerning,  isn’t  yet  a  full-blown  crisis.  Its  5%  growth  target  remains challenging but achievable, though this task feels smaller compared to the emergencies faced by the ECB or the US during their financial crises. The challenge lies in sustaining growth, as the country faces underlying economic struggles. One of the main criticisms is the lack of clear timelines or measurable targets for these initiatives. While the Chinese Politburo promised to stabilize the real estate market, it did not specify for how long or by what measures success would be determined, creating uncertainty about how far these policies will reach. China’s  economic  slowdown  started  well  before  the  pandemic,  making  it  harder  to  maintain  high  growth rates.  The  country’s  rapid  expansion  in  the  '90s  and  early  2000s  is  unlikely  to  return.  The  excitement surrounding  recent  measures  may  reflect  nostalgia  for  that  period,  but  the  economic  environment  has fundamentally changed. Despite  the  positive  impact  of  the  stimulus  on  markets,  much  work  remains  to  stabilize  the  economy long-term.  Policymakers  in  Beijing  need  to  clarify  their  goals,  and  while  the  initial  response  is  promising, China’s economic recovery will be a slow, uphill effort.   Source : https://www.channelnewsasia.com/commentary/china-economy-stimulus-xi-jinping-gdp-growth-4656516

The Indonesian Motorcycle Industry Association (AISI) projects motorcycle sales in Indonesia to hit 6.7 million units next year, up from an expected 6.5 million units by the end of 2024. Motorcycle  sales  for  January  through  September  2024  totaled  4.87  million  units,  marking  a  3.19  percent increase compared to the same period in 2023. In contrast, the Indonesian Automotive Industry Association (Gaikindo) recently lowered its 2024 car sales target from 1.1 million to 850,000 units.   Source : https://jakartaglobe.id/business/indonesias-motorcycle-sales-to-reach-67-million-units-in-2025-aisi-projects

Indonesia has joined BRICS as a partner nation under the leadership of President Prabowo Subianto, marking a shift from the cautious stance of former President Joko Widodo. Widodo previously hesitated due to concerns over appearing aligned with Russia and China’s agenda. However, Prabowo’s government has taken a more proactive approach, emphasizing that joining BRICS does not compromise Indonesia’s independent foreign policy. For Indonesia, BRICS represents an opportunity to enhance its economic development, especially given its close financial ties with China. In 2023, Indonesia was the top recipient of Belt and Road Initiative (BRI) funding, with over $7 billion invested. Prabowo appears willing to pursue Chinese-backed projects as part of Indonesia's economic expansion while still navigating an independent path within BRICS.   Source : https://www.lowyinstitute.org/the-interpreter/understanding-indonesia-s-decision-eventually-join-brics

UAE-based retail major Lulu Group marked its first retail push in the Far East by opening its first hypermarket in the Indonesian capital of Jakarta. The group has already announced its plans to invest USD 500 million as part of its expansion and intends set up 10 hypermarkets in the next three years in the country. The new outlet is part of 10 hypermarkets that the group plans to open in Indonesian cities of Bandung, Solo, Semarag, Surabaya and Yogya karta, which will provide jobs to 5,000 Indonesians in the next three years.   Source : https://www.khaleejtimes.com/corporate/lulu-group-now-serving-far-east-with-opening-of-jakarta-hypermarket

Taiheiyo Cement plans to export up to 1 million tonnes of cement annually to the U.S. from Indonesia by expanding capacity there, as well as capture infrastructure-related demand in Southeast Asia by increasing production in the Philippines. The moves come as the Japanese cement manufacturer looks to other markets after exiting China last year. It has added export storage facilities at the Indonesian plant and plans to build a pier there for loading the cement onto ships. Not only is the site expected to be an export base for the U.S, but Oceania as well.   Source : https://asia.nikkei.com/Business/Materials/Japan-s-Taiheiyo-Cement-to-boost-exports-from-Indonesia-to-U.S

New data shows a significant surge in trade between China and Mexico, driven by Chinese companies near- shoring manufacturing operations to Mexico. By bringing raw materials from China and assembling products in Mexico,  these  companies  take  advantage  of  Mexico’s  trade  agreements,  such  as  the  USMCA,  to  reclassify goods as "Made in Mexico," bypassing U.S. tariffs on Chinese products. This  nearshoring  trend  is  especially  prominent  in  sectors  like  automobiles  and  textiles,  where  components undergo "substantial transformation" in Mexico, allowing them to qualify for tariff exemptions when exported to the  U.S.  European  and  U.S.  companies  are  also  increasingly  nearshoring  to  Mexico,  capitalizing  on  its  trade networks and proximity to the U.S. Trade between China and Mexico has surged, with container traffic up 26.2% in the first half of 2024. Mexico’s free  trade  agreements  make  it  a  key  manufacturing  hub  for  Chinese  goods  entering  the  U.S.,  avoiding  high tariffs on Chinese imports. This shift has positioned Mexico as the top U.S. importer, surpassing China. Mexico’s role as a logistics hub has grown, with companies like Tesla, Hyundai, and BYD investing in the country. Cross-border trucking and rail transport from Mexico to the U.S. have increased, further solidifying its importance in U.S. supply chains. New infrastructure projects, like the Laredo rail bridge, are being built to accommodate rising trade volumes. As tariffs and trade barriers increase, experts predict Mexico’s importance as a trade route will continue growing through the end of the decade. Companies are front-loading goods through Mexico in anticipation of potential  new  tariffs  under  a  future  Trump  administration,  and  Mexico's  role  in  North  American  supply  chains  is expected to expand further.   Source : https://www.cnbc.com/2024/09/20/china-mexico-backdoor-trade-booms-in-trump-biden-tariff-era.html

Investment Minister Rosan Roeslani recently revealed that the production date of the petrochemical project belonging to South Korean giant Lotte Chemical still remained on schedule. The Lotte Chemical project includes a petrochemical facility to produce polypropylene, butadiene, benzene, toluene, and xylene (BTX). These products are mainstay ingredients in the manufacturing of goods necessary for the production of bottles, wheels, paint, medical equipment, and bug repellents.   Source : https://jakartaglobe.id/business/lotte-chemicals-39-billion-cilegon-plant-to-begin-production-in-march