Indonesia, US Eye Wider Critical Minerals Partnership After 'Positive' Meeting, Top Negotiator Says

Indonesia's meeting with United States representatives in Washington on the looming tariffs went "positively", its chief negotiator said on Thursday, with both countries exploring a wider partnership in the critical minerals sector. 

Southeast Asia's largest economy Indonesia is facing a 32% tariff imposed by the U.S. from August 1, highlighting its strategic importance in global trade to lower it. 

Chief negotiator and economic minister Airlangga Hartarto told Reuters that he met with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer in Washington on Wednesday. 

Airlangga's ministry said on Thursday that the talk covered tariffs, non-tariff barriers and commercial partnerships, adding that both countries will intensify talks over the next three weeks. 

"We already have a similar understanding with the U.S. regarding the talks. In the future, we will make an effort to wrap up these negotiations on the principle of mutual benefit," Airlangga said in the statement. 

Indonesia and the United States are eyeing a wider partnership in the former's critical minerals sector, with Airlangga's ministry citing the country's large reserves of nickel, copper and cobalt. 

G20 economy Indonesia is a major producer of metals such as nickel, tin and copper, and is also the world's biggest exporter of palm oil. 

In the tariff talks, Indonesia has proposed slashing its duties on American products to near zero and offered to increase U.S. purchases and investment in the country, amounting to a value of about $34 billion. 

Several Indonesian companies have recently signed initial deals with U.S. counterparts to increase purchases of energy supplies, wheat, corn and cotton, among others. 

Source: Reuters 

Car Sales Tumble In First Half of 2025 As Consumers Rein In Spending
 

The domestic four-wheel vehicle market showed no signs of recovery in the first half of 2025, with both wholesale and retail sales recording year-on-year (yoy) declines, reflecting continuing weakness in consumer demand.  

According to data from the Association of Indonesian Automotive Manufacturers (Gaikindo), wholesale deliveries of new cars from factories to dealers reached 374,740 units between January and June, down 8.6 percent compared to the same period last year.  

Retail sales, which measure purchases made by end consumers at dealerships, fell more sharply at 9.7 percent yoy to 390,467 units, down from 432,453 units in the first half of 2024.  

Gaikindo chairman Jongkie Sugiarto said the persistent slowdown in sales was driven by a combination of factors including elevated interest rates, broader macroeconomic challenges and subdued consumer purchasing power.  

“We hope automotive exhibitions such as the Gaikindo Indonesia International Auto Show [GIIAS] 2025, followed by Jakarta Auto Week and other regional auto shows, will help stimulate demand and boost overall sales,” Jongkie said, as quoted by Kompas.com.  

GIIAS 2025 is set to run from July 24 to Aug. 3 while Jakarta Auto Week is slated take place in November, both in BSD City, Banten.  

Last month’s sales figures further underscored weakness in the broader market.  

Wholesales plunged 22.6 percent yoy to 57,760 units while retail sales reached 61,647 units in June 2025, down 12.3 percent from June last year, when Gaikindo members sold 70,290 units.  

The retail figure showed a slight month-on-month improvement from May with an increase of 340 units, or 0.6 percent, but still reflected weak consumer sentiment.  

By brand, Toyota, distributed via Astra International, remained the market leader in June with 17,819 units sold. Daihatsu followed with 9,356 units, while Mitsubishi Motors came third with 5,053 units.  

Suzuki and Honda rounded out the top five with 4,940 and 4,179 units, respectively.  

Meanwhile, local multi-finance companies posted modest yoy growth of 2.8 percent in May to total IDR 504.6 trillion (USD 31 billion), according to data released on Tuesday by the Financial Services Authority (OJK).  

This marked a slowdown from 3.67 percent growth in April this year and 10.82 percent in May last year, falling short of the OJK’s annual financing growth target of 8 to 10 percent this year.  

The sluggish performance is largely attributed to a downturn in new vehicle sales, one of the sector’s primary financing objects, according to Agusman, the OJK’s head of supervision for multi-finance, venture capital and other financial services.  

Economic indicators showed mild improvements in June, with Bank Indonesia (BI) expecting the retail sales index (RSI) to rise 2 percent yoy to 233.7 points, driven in part by seasonal demand during the midyear school holiday.  

Among key categories, vehicle fuel sales are projected to post the strongest annual growth at 12.5 percent, while sales of car and motorcycle spare parts and accessories are expected to grow 1.8 percent yoy.  

In a move that could eventually ease borrowing costs for consumers, the central bank cut the BI-Rate, its benchmark interest rate, from 5.75 to 5.5 percent in May, potentially making car loans more affordable. 
 

Source: The Jakarta Post 

MRT Jakarta Eyes South Tangerang Expansion Via Partnership

Regional-owned enterprise PT Mass Rapid Transit (MRT) Jakarta plans to conduct a study on expanding its service routes to South Tangerang, not by using the regional budget (APBD), but rather through a public-private partnership. 

"We want to initiate a study or exploration of developing the routes without government funding, or at least using a KPBU scheme," Farchad Mahfud, Business Development Director of PT MRT Jakarta, stated here on Thursday. 
 
He remarked that the route expansion is intended to help reduce inter-provincial congestion. 
 
He explained that each province has several differences, including fiscal capacity and social characteristics. 
 
Therefore, an exploration with the South Tangerang city government is necessary. He expressed hope that the study would begin soon. 
 
"There are several routes that have been studied by the Directorate General of Railways, but we are also currently reviewing several other routes with new development strategies that could further help improve service aspects," he revealed. 
 
As previously reported, PT MRT Jakarta had discussed plans to expand its service routes with South Tangerang Mayor Airin Rachmi Diany, as well as the Jabodetabek Transportation Management Agency (BPTJ). 
 
Meanwhile, Jakarta Governor Pramono Anung stated that the plan to expand MRT services to South Tangerang is still under discussion. 
 
"Yes, we are currently discussing the expansion of the MRT service route. After the North routes, the South routes are now relatively complete, and the West and East routes have already begun. Therefore, expansion to South Tangerang is urgently needed," he remarked. 

Source: Antara News