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.



Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
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Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)

State Street Global Advisors, a subsidiary of State Street Corporation, announced that Saudi Arabia’s Public Investment Fund (PIF) has invested SAR 750 million ($200 million) in the newly launched SPDR J.P. Morgan Saudi Aggregate Bond ETF.

According to a statement released by the company on Wednesday, this fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). It is listed in both the London Stock Exchange and Germany’s Xetra, offering investors the opportunity to track government and quasi-government bonds denominated in either the Saudi Riyal or the US Dollar, including sukuk (Islamic bonds).

This investment aligns with the objectives of Saudi Vision 2030, representing a significant step toward enhancing the international presence of Saudi Arabia’s financial markets and attracting foreign investments. The fund is available to investors across several European countries, including Austria, Denmark, France, Germany, and Italy.

Commenting on the investment, Yazid Al-Humaid, Deputy Governor and Head of MENA Investments at PIF, said: “The fund continues to create opportunities and enable access to diverse capital markets in the Kingdom. Investing in the first internationally listed Saudi fixed-income ETF underscores PIF’s commitment to deepening Saudi capital markets, attracting investors, and fostering partnerships across global financial centers.”

CEO of State Street Global Advisors Yi-Hsin Hung emphasized that the launch of the fund is a significant milestone in providing innovative opportunities for investors while contributing to Saudi Arabia’s economic growth.