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Indonesia, EU close to finalising free trade pact

Rio Tinto in bailout talks for Aussie aluminium smelter: AFR SYDNEY: Global miner Rio Tinto is in talks with Australian federal and state governments about a multibillion-dollar bailout for its struggling Tomago aluminium smelter in New South Wales state, the Australian Financial Review (AFR) reported. The newspaper, citing sources it did not name, reported last week that talks centred on the smelter’s electricity contract for 2026 to 2029 and federal production tax credits. Rio and the offices of New South Wales Premier Chris Minns and Prime Minister Anthony Albanese did not immediately respond to Reuters requests for comment on the report. The future of the facility, majority owned by Rio, has been uncertain for months due in part to spiralling energy costs, according to the report. In February, Rio, the world’s largest iron ore producer, said it would decide the smelter’s future by mid-year. The facility about 125km north of state capital Sydney uses around 10% of New South Wales’ power supply to produce 590,000 tonnes of aluminium per year. In addition to Rio, it is owned by CSR and Hydro Aluminium. Australia’s centre-left government in January pledged A$2 billion in production credits to help support the country’s four aluminium smelters, including the Tomago facility, switch to renewable power before 2036. – Reuters Geely said in response at the time that its cooperation with Renault in Brazil had been successful. – Reuters Geely chairman says global auto industry faces ‘serious overcapacity’ SHANGHAI: Geely’s chairman and founder Li Shufu said on Saturday that the global automotive industry was facing “serious overcapacity” and that the Chinese automaker had decided not to build new manufacturing plants or expand production in existing facilities. Li made the comments at an auto forum in the central city of Chongqing, according to the company. Geely Holding owns multiple automotive brands including Geely Auto, Zeekr and Volvo. His comments come as the Chinese auto industry, the world’s largest, has been locked in a brutal price war that is forcing many players to look to markets abroad and has prompted Chinese regulators to call for a halt. Chinese automakers that have been building plants abroad include BYD, Chery Auto and Great Wall Motor. Geely is planning to use French automaker Renault’s existing production facilities in Brazil and take a minority stake in Renault’s business in the Latin American country, according to an announcement it made in February. Reuters reported in April, citing sources, that Chinese regulators had delayed approval for that.

He did not elaborate. Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and “we will communicate in details when we have an outcome.” Chaibi did not respond to a question about the special treatment. The EU is Indonesia’s fifth-biggest trade partner, with total trade between the two reaching €27.3 billion (RM131 billion) last year, according to the EU. Exports from the bloc were worth €9.7 billion in 2024, and it imported €17.5 billion’ worth from Indonesia. Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country’s export destinations as they deal with US tariff challenges. – Reuters

2025,” Airlangga Hartarto said in a statement. Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday. The EU has discussed Jakarta’s rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said. Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil. Airlangga said the bloc’s deforestation rules were not part of the free trade negotiations, but Sefcovic had “promised to provide special treatment towards Indonesia regarding deforestation”.

o Southeast Asia’s biggest economy to get special treatment on deforestation JAKARTA: Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June. Airlangga Hartarto, the chief economic minister for Southeast Asia’s biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels last Friday. “Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June

An employee reviewing the chip resistor production line at Yageo’s factory in Kaohsiung, Taiwan. – REUTERSPIC

Yageo to protect tech if Shibaura purchase succeeds TAIPEI: Taiwan’s Yageo said it will implement strict controls to prevent technology from leaking if it succeeds in acquiring Japan’s Shibaura Electronics, responding to concerns in Japan over what the deal could mean for national security. Japanese components supplier Minebea Mitsumi as a white knight. Minebea and Yageo entered a bidding war, with the latter now offering ¥6,200 yen. The stock closed at ¥6,100 on Friday. Chen said that negotiations with Japan’s Ministry of Economy, Trade and Industry had been going smoothly.

He said that if Yageo acquires Shibaura, the deal would address a gap in its portfolio of thermistors, making Yageo’s offerings more complete for global customers and helping Shibaura expand its access to markets outside of Japan. Yageo said it aims to ease the burden of managing smaller component suppliers for its major clients, including Apple and Nvidia, by offering more comprehensive product portfolios and solutions. Yageo is also the world’s number three manufacturers of multilayer ceramic capacitors and provides key components used in Apple’s iPhones, Nvidia’s AI servers, and Tesla’s electric vehicles. – Reuters

“Our strategy is to inject resources and strengthen R&D for advanced technologies. We’re also preparing to make larger investments to expand their facilities in Japan,” Chen said. Asked about Japan’s national security concerns, he said: “We will implement strict controls to ensure technology does not leak.” Unsolicited takeovers were once rare in Japan, where firms often mounted elaborate defences. The Japanese industry ministry’s M&A guidelines in 2023 cracked down on what it considered excessive defence tactics, de-stigmatising unsolicited buyouts and leading some of such deals to succeed.

Chairman Pierre Chen told reporters in Taipei on Saturday that company officials will meet with their Shibaura counterparts in mid-June in Tokyo to discuss potential cooperation. Yageo, the world’s largest maker of chip resistors, launched an unsolicited tender offer for Shibaura in February, seeking full control of the Japanese firm, which specialises in thermistor technology. Yageo offered to buy Shibaura at ¥4,300 per share, valuing the company at more than ¥65 billion (RM1.9 billion). Spurning Yageo’s overture, Shibaura tapped