Indonesia’s central bank (BI) slashed interest rates on September 19 for the third month in a row as Southeast Asia's biggest economy is affected by the US-China trade war and slow global growth.
Indonesia’s central bank (BI) slashes interest rates on September 19 for the third month in a row (Photo: AFP/VNA)
Hanoi (VNA) – Indonesia’scentral bank (BI) slashed interest rates on September 19 for the third month ina row as Southeast Asia's biggest economy is affected by the US-China trade warand slow global growth.
BI lowered its key lending rate to 5.25percent, prompting speculation that more cuts could be ahead as central banksaround the world relax monetary policies.
BI governor Perry Warjiyo said this is apre-emptive measure to boost the momentum of growth amid a global economicslowdown.
The move comes after the US Federal Reserveannounced its second interest rate cut of the year as it pointed to a slowingworld economy and the US-China trade tensions.
Last week, the European Central Bankunveiled a massive stimulus programme rate cut to goose the sluggish eurozoneeconomy.
Indonesia’s economic growth was 5.05percent in the second quarter - the lowest quarterly expansion in two years - asexports and investment slipped./.
Many schools on Indonesia’s Borneo and Sumatra islands on September 16 were closed due to choking smoke from forest fires while the country has recorded thousands of respiratory infection cases.
Indonesia’s gross domestic product (GDP) growth could slow to 4.9 percent in 2020 and 4.6 percent in 2022 amid intensifying risks such as the escalating trade tension between China and the US, according to the World Bank.
Indonesia has announced it will send 100 containers of contaminated plastic waste back to Australia to make it clear the country does not wish to become a "dumping ground".
The Ministry of Commerce reported that imports also rose 18% to 29.9 billion USD during the same period, resulting in a trade surplus of 1.1 billion USD. In May alone, Thailand posted a 4.6 billion USD trade surplus with the US and a 4.1 billion USD trade deficit with China.
The World Bank will provide a 2.1 billion USD financing package for Indonesia, focusing oncreating jobs, stimulating economic growth, and enhancing access to clean energy across the country.
Member states also reviewed progress on six priority areas for 2025, including the development of an underground cable framework, the follow-up agreement to the ASEAN Petroleum Security Agreement (APSA), the launch of the ASEAN Energy Efficiency Database, and the rollout of an investment platform for sustainable building initiatives.
In March, Thai Prime Minister Paetongtarn Shinawatra met with Formula 1 chief Stefano Domenicali and said Thailand would commission a feasibility study into hosting a Grand Prix on a Bangkok street circuit from 2028.
The proposed giant sea wall aligns with bilateral cooperation and has been designated a national priority, considering that several regions in Indonesia are experiencing land subsidence of 10–15 centimetres per year.
International flights were cancelled including Jetstar and Virgin Australia flights to cities across Australia, and flights of Air India, Air New Zealand, Singapore's TigerAir and China's Juneyao Airlines.
The partnership aims to strengthen collaboration in the exploration and exploitation of mineral resources, including gold, copper, and manganese, as well as in the development of steel, aluminum, and renewable energy industries.
The Thai cabinet has approved a seven-year EV bus leasing scheme proposed by the Bangkok Mass Transit Authority (BMTA) for the capital, with an estimated cost of 15.35 billion THB (over 470 million USD).
Aircraft are prohibited from flying below 6,000 metres in the vicinity of the volcano, and should also remain alert to the presence of volcanic ash, which can disrupt flights.
Laos declared the transfer of the press management functions of five key media agencies and associated personnel to the Propaganda and Training Board of the Lao People's Revolutionary Party Central Committee.
Univers said in a statement that the new centre will serve as a hub for innovation, bringing together digital intelligence and climate ambition to accelerate Sarawak's transition toward a low-carbon, tech-enabled economy.
The target is to be completely free from plastic waste within two years. This can only be achieved if all parties implement the initiative with strong discipline.
Indonesia is taking new steps to improve protections for fishery workers, amid concerns over low wages, harsh working conditions, and limited access to social welfare.
The 2025 ASEAN- the Republic of Korea (RoK) Connectivity Forum that opened in Jakarta on June 17 reaffirmed a shared commitment to shaping a connected, resilient future by advancing the ASEAN Connectivity Strategic Plan.
The desk will serve as a service centre providing market intelligence, business licensing guidance, facilitating business cooperation, identifying potential investment projects, and harmonising regulatory policies between the two parties.
Malaysian Prime Minister Anwar Ibrahim noted that the Asia-Pacific region accounted for half of global energy consumption and 60% of greenhouse gas emissions in 2024. Despite this, regional countries, including eight of ten ASEAN member states, remain committed to climate goals, including net-zero emissions and tripling global renewable capacity by 2030.
Indonesia’s central bank (BI) slashes interest rates on September 19 for the third month in a row (Photo: AFP/VNA) 
