Indonesia Roundup: Workers face layoffs over US tariffs, rising military role, $7.7 b battery supply chain withdrawn

Potential layoffs due to US tariffs

Following the announcement of a 32% tariff on Indonesian exports by the US, up to 50,000 Indonesian workers may face layoffs, prompting President Prabowo to instruct cabinet members to explore employment measures urgently. According to VN Express, this assessment was shared by Vice Chair of Indonesia’s National Economic Council, Mari Elka Pangestu, highlighting ongoing negotiations and various initiatives to mitigate impacts on the labour-intensive textile and shrimp processing industries.

Concerns over military role in governance

Amid concerns about Indonesia regressing to authoritarianism reminiscent of Suharto's regime, critics are alarmed at President Prabowo's moves to expand the military's role in governance. Human rights advocates emphasise a collective trauma over past abuses as public protests arise against new legislation, as reported by the Economic Times. Despite this, Prabowo maintains that limitations are in place, while fears of media suppression and intimidation grow due to recent incidents involving local journalists.

Withdrawal from $7.7 billion EV battery project

A South Korean consortium led by LG has decided to withdraw its $7.7 billion electric vehicle battery supply chain project in Indonesia, citing changes in the industrial landscape and reduced global EV demand. Despite this exit, LG Energy Solution plans to maintain its existing operations in Indonesia, including a joint venture with Hyundai for battery production, reports Social News XYZ.

Rising cocaine use reported in Indonesia

Tempo reports that the Indonesian National Police reported a rising trend in cocaine use, evidenced by a recent seizure of 25 kilogrammes of cocaine in Aceh and North Sumatra. The increase reflects the activity of an international drug distribution network. Despite cocaine's limited distribution due to high costs, arrests in this case indicate growing concerns regarding drug abuse in the country.

First ministerial ‘2+2’ dialogue between Indonesia and China

Indonesia and China are set to hold their first-ever 2+2 ministerial dialogue on April 21 in Beijing, marking a significant step in bilateral relations. This dialogue, which underscores strategic cooperation, follows previous meetings between President Xi Jinping and President Prabowo. The meeting aims to discuss security, political cooperation, and regional collaboration, further solidifying the nations' 75-year diplomatic relationship, reports Antara.