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View all search resultsCoordinating Economy Minister Airlangga Hartarto said on Tuesday that President Prabowo Subianto had committed to the funding to keep technology competitive and sustain investment in the textile sector.
For Indonesia, which is deeply embedded in East Asian production networks and heavily exposed to Chinese trade and investment, a reciprocal trade agreement with the US could trigger chaotic and costly supply chain realignments.
President Prabowo has promised to form a layoff task force to prevent arbitrary dismissals of employees and ensure companies adhere to fair labor practices, as demanded by workers attending the May Day rallies.
While the government's decision to backtrack on the planned VAT rate hike offers short-term relief, it also erodes public trust and investor confidence amid a shrinking middle class, which points to a need for comprehensive reforms that include labor formalization, downstreaming expansion, human capital development and supply chain integration.
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