Indonesia’s New Leader Calls for Collaboration with China before Heading to the US

 Indonesian President Prabowo Subianto gestures as he delivers a speech during the Indonesia-China Business Forum in Beijing, Sunday, Nov. 10, 2024. (AP)
Indonesian President Prabowo Subianto gestures as he delivers a speech during the Indonesia-China Business Forum in Beijing, Sunday, Nov. 10, 2024. (AP)
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Indonesia’s New Leader Calls for Collaboration with China before Heading to the US

 Indonesian President Prabowo Subianto gestures as he delivers a speech during the Indonesia-China Business Forum in Beijing, Sunday, Nov. 10, 2024. (AP)
Indonesian President Prabowo Subianto gestures as he delivers a speech during the Indonesia-China Business Forum in Beijing, Sunday, Nov. 10, 2024. (AP)

Indonesia's new leader called for collaboration rather than confrontation with China after the signing of $10 billion in new deals at a business forum on Sunday in the Chinese capital before heading to the US.

President Prabowo Subianto told the forum that his country wants to be part of China's emergence as not only an economic but also a “civilizational power.”

“We must give an example that in this modern age, collaboration — not confrontation — is the way for peace and prosperity,” he said.

Subianto wrapped up the first stop of his first overseas trip since taking office three weeks ago. He is headed next to Washington — where the US government is confronting China’s rise — and then to Peru and Brazil for the Asia-Pacific Economic Cooperation and Group of 20 summits.

He and Chinese President Xi Jinping agreed Saturday to deepen ties, elevating security to a fifth “pillar” of cooperation in addition to political, economic, maritime and people-to-people exchange. They agreed to hold a first-ever joint meeting of their foreign and defense ministers in 2025, a joint statement said.

“Indonesia is very clear,” Subianto said. “We have always been nonaligned, we have always been respectful of all great powers in the world.”

Indonesia has remained on the periphery of the territorial disputes between China and its Southeast Asian neighbors in the South China Sea. It doesn’t have a formal dispute with Beijing though Indonesia said its patrol ships repeatedly drove a Chinese coast guard vessel away from an Indonesian energy company vessel conducting a seismic survey less than a month ago.

Chinese companies have invested heavily in mining in Indonesia, as they have elsewhere in the world. China also helped build Indonesia's first high-speed railway, a 142-kilometer (88-mile) route between Jakarta and Bandung that opened last year.

But a flood of low-priced Chinese products has hit Indonesia's garment makers hard, shuttering factories and prompting calls for import tariffs. The government has sought to placate domestic producers while not angering the country’s biggest trading partner.



Gold Steady as Focus Shifts to US Data for Economic Cues

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Steady as Focus Shifts to US Data for Economic Cues

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices were little changed on Monday, while investors awaited a slew of US economic data including the December nonfarm payrolls report for further guidance on the Federal Reserve's stance on interest rates.
Spot gold held its ground at $2,635.39 per ounce by 0510 GMT. US gold futures dropped 0.2% to $2,646.80.
How the US jobs data fares this week could hold the key to whether gold breaks out of its recent range, said Tim Waterer, chief market analyst at KCM Trade.
"There is a plethora of US data due for release this week (including ISM Services PMI data), and any downside misses could hurt the USD and help gold."
The US jobs report, due on Friday, is expected to provide more clues to the Fed's rate outlook after the US central bank rattled markets last month by reducing its projected cuts for 2025.
Investors are also awaiting ADP hiring and job openings data, as well as minutes of the Fed's last policy meeting for further direction.
Gold flourishes in a low-interest-rate environment and serves as a hedge against geopolitical uncertainties and inflation.
US President-elect Donald Trump is set to return to office on Jan. 20 and his proposed tariffs and protectionist policies are expected to fuel inflation.
This could prompt the Fed to go slow on rate cuts, limiting gold's upside. After three rate cuts in 2024, the Fed has projected only two reductions for 2025 due to persistent inflation.
The US central bank's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin said on Friday.
Spot silver was down 0.2% at $29.57 per ounce, platinum dipped 0.7% to $931.30 and palladium fell 0.4% to $918.22.