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Indonesia eyes stronger ties with China under newly elected president: expert

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Indonesia eyes stronger ties with China under newly elected president: expert

2024-11-10 14:35 Last Updated At:15:27

Indonesia is looking to deepen its partnership with China under newly-elected President Prabowo Subianto, who has ambitious goals for the Southeast Asian country’s economic growth, green transition and social development, said Arsjad Rasjid, the chairman of the Indonesian Chamber of Commerce and Industry.

In an interview with China Global Television Network (CGTN), the chairman said President Subianto, who was sworn in as the country's eighth president late last month, is focusing on economic growth and sustainable development, and sees China as a critical partner to achieve Indonesia's Golden 2045 vision.

"Prabowo Subianto is very determined to have an economic growth of eight percent, which I personally believe it is important to have eight-percent growth. Because if you want Indonesia to be in a golden time in 2045, we have to aim high. And so I totally agree with his eight-percent economic growth. For Indonesia, China is very important, very important because if you look at the trades as an example, 25 percent of trades between Indonesia and other countries, China is about 25 percent of that, right? That's huge," he said.

"The other energy transition is the example of electric vehicles, that's also where China has played a pivotal role in, for example, the mining side of the nickels has created more value added in Indonesia, for battery purposes, as an example. Number one, reduce our carbon emissions, which is important for Indonesia. Number two is reduce our subsidy on the current fuels, the subsidy on fossil fuels. That will help the government budget, right? And third, of course, investment for Indonesia" he continued.

Rasjid highlighted that Subianto's plan centers on using China’s support to boost growth across all sectors, aiming for balanced and shared prosperity for all Indonesians.

"Because his goal is actually prosperity for the people. And it has been his vision. He has always been thinking about the people. That's why when even talking to China on this logic, this alignment, in my opinion, he would also bring about that economic growth is one thing. And he wants to make sure of eight percent economic growth. But that has to be a just economic growth, which means that everyone must feel, must have the touch of this growth. And so with that, the social economy, not just economy, but socially is also important. So I think the alignment is to create the social economic relationship between Indonesia and China," he said.

Chinese President Xi Jinping held talks with Subianto in Beijing on Saturday. The Indonesian President is on a state visit to China from Friday to Sunday.

Indonesia eyes stronger ties with China under newly elected president: expert

Indonesia eyes stronger ties with China under newly elected president: expert

U.S. stocks finished slightly higher on Monday, staging a late-session recovery as investors navigated a volatile landscape marked by a criminal probe into the Federal Reserve leadership.

The Dow Jones Industrial Average rose 86.13 points, or 0.17 percent, to 49,590.2. The S&P 500 added 10.99 points, or 0.16 percent, to 6,977.27. The Nasdaq Composite Index increased by 62.56 points, or 0.26 percent, to 23,733.9. Despite the positive close, the market experienced significant intraday turbulence, with the Dow dropping nearly 500 points at its session lows.

Nine of the 11 primary S&P 500 sectors ended in positive territory. Consumer staples and industrials led the gainers, rising 1.42 percent and 0.75 percent, respectively. Financials and energy were the primary laggards, declining 0.8 percent and 0.66 percent.

Market sentiment was initially shaken by an announcement on Sunday from Fed Chair Jerome Powell, who confirmed that federal prosecutors are investigating him over the Fed's multi-billion-dollar project to renovate its headquarters. Powell characterized the probe as an attempt by the Trump administration to compromise the Fed's independence.

Further weighing on the financial sector was a proposal by U.S. President Donald Trump to cap credit card interest rates at 10 percent for one year, which triggered a sell-off in banking stocks amid concerns over restricted lending and reduced profitability. Capital One shares plummeted 6.42 percent, while Citigroup, JPMorgan and Bank of America also recorded losses.

In contrast, retail giant Walmart led the Dow's advance, climbing 3 percent following news of its upcoming inclusion in the Nasdaq 100 index. The company also announced a strategic partnership with Google's Gemini AI to enhance the digital shopping experience.

Investors are awaiting Tuesday's release of the U.S. consumer price index for December 2025. Following last week's cooling labor market data, market participants increasingly expect the Fed to maintain interest rates at their current levels during the upcoming January meeting.

U.S. stocks close higher amid criminal probe into Fed chair Powell

U.S. stocks close higher amid criminal probe into Fed chair Powell

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