BBN Indonesia Grows Bamboo Routes
Bamboo Airways has entered into a full ACMI (Aircraft, Crew, Maintenance, and Insurance) agreement with BBN Airlines Indonesia, a subsidiary of Avia Solutions Group, a global ACMI provider.
According to a report in TTRW, the partnership will see BBN Airlines Indonesia operate a Boeing 737-900ER aircraft for Bamboo Airways as part of the Vietnamese airline’s efforts to improve operational capacity on high-traffic routes.
Indonesia Eyes Status as Global Ship Production Hub
Indonesia has the potential to become a centre for global ship production, given its geostrategic and geoeconomic position as a major maritime power in Southeast Asia, according to a report carried by Antara.
“The shipping sector is one of the mainstays of transportation modes, supporting logistics for transporting commodities and passengers,” Deputy Industry Minister Faisol Riza stated at the 1st Indonesia Maritime Week 2025 Jakarta, Tuesday (May 27).
Currently, 342 active shipyards are spread across 29 provinces, with a building production capacity of 1 million deadweight tonnage (DWT) per year and a repair capacity of 12 million DWT annually. This industry has employed more than 46 thousand workers.
Indonesia and China Redefine Regional ties
Indonesia and China have renewed economic ties through fresh memorandums of understanding ahead of the ASEAN Summit in Kuala Lumpur. The agreements, estimated to bring over US$8.8 billion in investment and 25,500 jobs, reveal the shifts occurring in the Southeast Asia region. At a time when protectionism and great-power rivalry threaten to divide developing economies, Jakarta and Beijing are charting a different path, reflecting a hard-nosed realism and a deep historical understanding of the region’s position in global affairs.
As noted by the Jakarta Post, Indonesia’s decision to deepen economic cooperation with China is neither sudden nor surprising. From the Belt and Road Initiative’s (BRI) infrastructure projects to the recently operational Whoosh high-speed rail line, it has been clear that these agreements come not in isolation, but as part of a coordinated effort by Beijing to reengage Southeast Asia amid rising tensions with Washington. Last month, Chinese leader Xi Jinping made visits to Vietnam, Malaysia and Cambodia, securing economic pacts and cultural agreements. The future of global economic resilience, in China’s eyes, runs through ASEAN.
Repercussions of US Tariffs on Indonesia’s Export Strategy
As reported in The Diplomat, While trade talks with the U.S. are still underway, Indonesia must reassess its non-tariff measures to address U.S. concerns while ensuring fair trade practices and maintaining economic stability.
Despite not being as successful as fellow ASEAN countries such as Vietnam, Indonesian products supplanted Chinese goods in the US market and export-oriented Chinese Foreign Direct Investment (FDI) flowed into Indonesia. Moreover, Indonesia accelerated the signing of bilateral and regional trade agreements such as the ASEAN Plus Three and Regional Comprehensive Economic Partnership (RCEP) to diversify its export destinations and bolster supply chain resilience.
As Ramadan ended, US President Donald Trump dropped a bombshell: reciprocal import tariffs that cut short everyone’s well-earned break but also threatened to upend global trade with staggering losses. Tax Foundation summarized the reason for the US’ reciprocal tariffs on imported goods at the US Congress Joint Economic Committee Hearing on Dec 18, 2024: the relative decline in competitiveness of US industries compared to other nations, widening inequality, insufficient job creation and other domestic economic issues. These concerns have driven a high-risk protectionist practice that may ultimately harm all parties involved.
According to the Jakarta Post, although Trump’s 90-day postponement of reciprocal tariffs – followed by China after talks in Geneva – is encouraging, uncertainty persists because of the unpredictability of Trump’s directives and his questionable judgment. MacroMicro’s Trade Policy Uncertainty Index in April rose to nearly ten times its level from last September, underscoring the growing need for negotiation strategies to ensure trade stability.
Also see our recent related article: Maritime Industry Events in May 2025
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