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STRATEGIC ASSESSMENT. The Indonesian government secured an $11.5 billion investment commitment from a Chinese company during President Jokowi’s two-day visit to Chengdu, China, on July 27-28. Investment Minister Bahlil Lahadalia said the commitment came from one of the world’s largest glass producers, Xinyi, to develop a glass and solar panel manufacturing facility. Bahlil said that Xinyi is committed to building a manufacturing plant in Rempang Island, Batam.
Indonesia’s economy likely grew 4.93% from a year earlier in the April-June quarter, the slowest since the third quarter of 2021, due to weakening global demand for its exports, according to the median forecast of 22 economists polled by Reuters.
On quarter-on-quarter basis, the economy was expected to have grown 3.72% in the June quarter, according to a smaller sample of forecasts received in the July 31-Aug.3 poll.
Indonesia concluded the signing of a preferential trade agreement (PTA) with Iran on May 23, 2023, with the aim to increase trade revenue and create new investment opportunities between the two countries.
Indonesia will reduce tariffs on Iranian oil, chemical products, pharmaceuticals, metals, and dairy products in exchange for Iran giving Indonesia greater access to export its products like processed food, pharmaceuticals, textiles, palm oil, coffee, and tea.
Iran, being located at the heart of West Asia, connects the Middle East, Asia, and European markets. Iran also has large reserves of natural resources, such as oil, natural gas, copper, iron ore, and zine. In addition, Indonesia presents a huge market for Iranian exporters, especially for agricultural products.
