Indonesia Roundup: Nusantara acceleration, US trade concerns, fires controlled

Nusantara development to accelerate, not halt

Development of Indonesia’s new capital, Nusantara, will proceed without any moratorium, with three years remaining before the target to relocate the seat of government to the city of East Kalimantan, said Nusantara authority chief Basuki Hadimuljono. President Prabowo Subianto has ordered the acceleration of Nusantara's development, which already features a presidential palace and is expected to house the legislature and judiciary buildings by 2028. Around 5,000 people are working on Nusantara, which is intended to be a green and sustainable city, in contrast to the densely populated capital, Jakarta.

Trump’s tariff deal ‘not win-win’ for Indonesia — analyst

US President Donald Trump’s intimidation tactics toward President Prabowo Subianto have been effective in securing a lopsided trade agreement against Indonesia, an analyst said ahead of the Aug. 7 implementation of the deal. In a podcast quoted by Suara on Aug. 4, Syahganda Nainggolan of the Sabang-Merauke Circle Public Research Institute said that, unlike with Europe, Indonesia’s trade agreement with the US is not a “win-win situation.” This follows Prabowo’s move to remove tariffs on nearly all US goods, while Trump agreed only to reduce tariffs on Indonesian products to 19% from 32%.

Megawati urges democratic party to support Prabowo, stay critical

Former Indonesian president and Indonesian Democratic Party of Struggle (PDIP) Chairwoman Megawati Soekarnoputri has urged support for the administration of President Prabowo Subianto, but reminded party members to remain critical of policies that may harm the public. PDIP was the ruling party when former president Joko Widodo was still in power. However, Widodo backed Gerindra Party’s Prabowo Subianto, now the Indonesian president, in the 2024 elections. Soekarnoputri was Indonesia’s president from 2001 to 2004.

Forest fires in West Kalimantan reportedly under control 

The National Disaster Mitigation Agency (BNPB) reported that all fire hotspots in West Kalimantan have been extinguished as of August 2. BNPB Chief Lt. Gen. Suharyanto said they deployed air patrols and cloud seeding flights between July 4 and August 2, dispersing over 35 tonnes of seeding material. Authorities warned the public to remain alert as the dry season continues. While the situation’s now under control, Suharyanto urged continued vigilance as the dry season peaks.

Illegal imports drive Indonesian textile sector decline

Indonesia’s textile and filament yarn industry is under pressure due to illegal imports from China and the government’s rejection of the Anti-Dumping Import Duty (BMAD). Farhan Aqil of the Indonesian Filament Fibre and Yarn Producers Association (APSyFI) said the rejection of BMAD has led to factory closures and discouraged foreign investors despite earlier signs of interest. Additionally, the group reported that filament yarn imports have risen by up to 300% since 2017.