http://www.alphapacificgroup.com/

Alpha Pacific Transport Group, Jalan Gunung Sahari Raya No 1 Blok B 7/8, Jakarta (2026)

07/08/2026

Trump Trade War Puts Indonesia’s Batam on Global Factory Map

Batam is emerging as a major manufacturing hub as the US-China trade war pushes companies to diversify production beyond China. Chinese toy maker Welson Group recently opened its first factory outside China in Batam, producing Disney merchandise. The company chose the island for its proximity to Singapore, young workforce and tax incentives.

Batam’s free-trade-zone status also gives it an advantage, with tax exemptions on imported raw materials and machinery and zero export duties on finished goods. Its exports have more than doubled since 2017, reaching about USD 19.6 billion in 2025.

The island is attracting increasingly high-profile investments. Apple’s AirTag facility now produces around 70% of its global supply, while Firmus Technologies plans a 360-megawatt data center in partnership with Nvidia. Batam’s economy grew 6.8% in 2025, outpacing Indonesia’s 5.1% expansion.

Batam’s transformation is also expanding into digital industries. Nongsa Digital Park has attracted data centers and creative businesses, while Apple and IBM operate digital academies there. With supply-chain diversification accelerating across Southeast Asia, Batam appears increasingly positioned as a long-term alternative manufacturing and technology base to China.

https://www.bloomberg.com/news/features/2026-08-05/trump-trade-war-puts-indonesia-s-batam-on-global-factory-map

06/08/2026

Cathay Pacific Profit Soars 71% as Passenger and Cargo Demand Strengthens

Cathay Pacific reported a 71% year-on-year increase in first-half 2026 net profit to HK$6.24 billion (USD 802 million), driven by strong passenger travel and cargo demand. Revenue climbed 25.3% to HK$68.06 billion, while the group's profit margin improved to 9.2%. Passenger numbers rose 17.5% to 16 million, and cargo tonnage increased 8.5%.

The airline said higher transit traffic through Hong Kong during the Middle East conflict helped support airfares, while budget carrier HK Express significantly reduced its losses. Cathay also declared an interim dividend of HK$0.26 per share, up 30% from a year earlier, and reaffirmed its target of around 10% passenger capacity growth in 2026.

Despite the strong performance, Cathay warned that rising jet fuel prices linked to escalating geopolitical tensions in the Middle East could pressure earnings in the second half. The airline said fuel hedging and surcharges offset only about half of the higher fuel costs during the second quarter.

Looking ahead, Cathay plans to invest around HK$150 billion in new aircraft, cabin upgrades, lounges, and digital innovation. Over the next decade, it aims to add 150 new aircraft, expand its fleet to about 300 aircraft, and grow its network to 150 destinations, although deliveries of the Boeing 777-9 and Airbus A350F have been delayed.

[https://www.scmp.com/business/hong-kong-economy/article/3320223/cathay-pacific-posts-71-profit-rise-hk624-billion-first-half-year]

05/08/2026

China’s durian imports from Thailand and Malaysia soar as glut pressures growers

China imported 1.07 million tonnes of durian in the first half of 2026, up 47% year-on-year, as Thailand and Malaysia significantly increased shipments to the world's largest durian market. Thailand remained the dominant supplier with exports worth USD 3.79 billion, accounting for 81% of China's imports, while Vietnam contributed USD 846 million. Malaysia, although still a smaller player, recorded the fastest growth, with exports surging 342% to USD 30.26 million.

The sharp increase in supply has created an oversupply across Southeast Asia, as orchards planted six to ten years ago have reached peak production. With demand in China growing more slowly than output, wholesale durian prices have fallen by an estimated 14–20% this year. Industry experts also noted that higher inventories and more cautious consumer spending have contributed to the price decline.

To improve competitiveness, Malaysia is seeking China's approval for a land transport route to shorten delivery times, while Vietnam continues working to strengthen quality standards after previous export issues. Meanwhile, China says expanding import channels have increased consumer choice and made durians more affordable for shoppers.

https://www.scmp.com/economy/global-economy/article/3361299/chinas-durian-imports-thailand-and-malaysia-soar-glut-pressures-growers

05/08/2026

Global Air Cargo Demand Rises 8.5% in June as North America Leads Growth

Global air cargo demand strengthened in June 2026, with total cargo tonne-kilometers (CTK) rising 8.5% year-on-year, according to the International Air Transport Association (IATA). Available cargo capacity increased 4.4%, allowing demand growth to outpace capacity across most regions. IATA said strong shipments of high-value technology products and urgent cargo supported the market despite ongoing geopolitical and trade uncertainties.

North America posted the strongest regional performance, with cargo demand jumping 13.1% from a year earlier, followed by Asia-Pacific at 7.9% and Europe at 6.9%. Middle Eastern carriers recorded 5.6% growth despite continued disruption from regional conflicts, while Latin America and the Caribbean saw the weakest gain at 3.5%. African airlines reported 4.7% demand growth even as capacity declined 7.1%.

Trade lane performance remained uneven. Asia–North America led with a 14.7% increase in cargo traffic, while Europe–Asia and Within Asia also recorded solid gains. However, routes linked to the Gulf continued to suffer, with Europe–Middle East traffic falling 41.1% and Middle East–Asia declining 4.1% as the conflict in the region disrupted operations.

IATA Director General Willie Walsh said the strong June results provide reasons for optimism in the second half of 2026, but warned that risks remain. He cited ongoing hostilities in the Middle East and the potential return of U.S. tariff measures as key uncertainties. Global trade expanded 5.2% year-on-year, while manufacturing activity remained supportive despite weaker export orders, suggesting that air cargo growth is being driven by specific high-value trade flows rather than broad-based export expansion.

Source: [https://www.iata.org/en/pressroom/2026-releases/2026-07-29-01/]

05/08/2026

Lufthansa Blames Iran Conflict and Fuel Costs for Weakest Quarter Outside Pandemic

Lufthansa Airlines reported one of its weakest financial performances outside the COVID-19 pandemic, with the Iran conflict, soaring fuel costs, and labor strikes pushing its second-quarter adjusted EBIT to a EUR37 million loss, compared with a EUR247 million profit a year earlier. Revenue remained broadly stable at EUR4.57 billion, but higher fuel prices after hedging added EUR415 million in costs, while April strikes reduced earnings by another EUR115 million. The airline also cut capacity by 6.5% due to Middle East route disruptions.

Despite weakness in its passenger operations, Lufthansa Cargo posted a strong second quarter as reduced market capacity boosted freight rates. Cargo revenue jumped 27% year-on-year to EUR1 billion, while adjusted EBIT rose 58% to EUR116 million. Cargo traffic increased 3%, capacity expanded 2%, and the cargo load factor improved to 62.9%, reflecting stronger demand and higher yields amid ongoing geopolitical disruptions.

Chief Financial Officer Jörg Beißel said Lufthansa recorded a first-half adjusted EBIT loss of EUR480 million on revenue of EUR8.1 billion. He noted that more than 1,200 turnaround initiatives are underway, including the rollout of Allegris premium cabins, engine maintenance improvements, airport modernization, and cost-cutting measures. Although the airline lowered its financial outlook, management said the transformation program remains on track and is expected to strengthen Lufthansa's long-term competitiveness.

Source: [https://www.aircargoweek.com/one-of-the-financially-worst-quarters-lufthansa-explains-why/]

04/08/2026

Indonesia's First-Half Exports Rise 4.13% to USD 140.81 Billion

Indonesia's exports rose 4.13% year-on-year to USD 140.81 billion during the first half of 2026, according to Statistics Indonesia (BPS). Manufacturing was the largest contributor to export growth, while stronger shipments of crude palm oil, coal, and other key commodities also boosted overseas sales. Meanwhile, imports climbed 18.69% to USD 137.24 billion, reducing the country's trade surplus.

China remained Indonesia's largest export destination, accounting for USD 34.56 billion, or 25.58% of non-oil and gas exports. The United States followed with USD 15.82 billion, while India ranked third at USD 9.25 billion. Indonesia's leading export products included iron and steel, nickel and its derivatives, mineral fuels, electrical machinery, footwear, clothing, and palm oil products.

Higher imports were mainly driven by increased purchases of raw materials and auxiliary goods, which made the biggest contribution to import growth. Despite the surge in imports, Indonesia still recorded a goods trade surplus of USD 3.57 billion during the January–June period. However, June alone posted a USD 450 million trade deficit as imports of USD 25.91 billion exceeded exports of USD 25.46 billion.

https://en.antaranews.com/news/425241/indonesias-first-half-exports-rise-413-percent-to-us14081-billion

04/08/2026

Ministry Expects Steady Growth in Indonesia's Sportswear Market

Indonesia's Ministry of Industry expects the country's sportswear market to continue expanding, supported by growing public interest in healthier and more active lifestyles. Citing Euromonitor International, the ministry said the domestic sportswear market reached approximately Rp38.5 trillion (USD 2.14 billion) in 2025, an increase of about 8% from the previous year. The market is projected to grow to Rp58.6 trillion by 2030, representing a compound annual growth rate (CAGR) of around 9%.

Deputy Minister of Industry Faisol Riza encouraged local manufacturers, particularly small and medium enterprises (SMEs), to capitalize on the sector's growth by increasing production capacity and strengthening the competitiveness of Indonesian brands. He noted that the success of local brands within the national sports ecosystem demonstrates their ability to compete with international players.

Indonesia's sportswear industry is also benefiting from stronger export performance. According to Statistics Indonesia (BPS), textile apparel exports increased 2.7% from USD 7.08 billion in 2024 to USD 7.27 billion in 2025, while sports equipment exports jumped 12% to USD 306.3 million. The ministry added that the apparel, footwear, and sports equipment industries remain key labor-intensive sectors, supporting millions of jobs, while government programs continue to improve workforce skills, modernize production, strengthen certification, and expand market access.

[https://en.antaranews.com/news/371481/ministry-expects-steady-growth-in-indonesias-sportswear-market]

04/08/2026

Indonesia, Thailand Aim for USD 20 Billion Trade by 2030

Indonesia and Thailand have agreed to increase bilateral trade to USD 20 billion by 2030 after President Prabowo Subianto and Thai Prime Minister Anutin Charnvirakul adopted a new Indonesia–Thailand Strategic Partnership Roadmap during talks in Jakarta. The agreement marks the first visit by a Thai prime minister to Indonesia in 15 years and outlines cooperation across multiple sectors over the next four years.

The roadmap includes plans to expand investment, improve market access, and establish the first Joint Trade Commission between the two countries to identify new business opportunities and remove trade barriers. Both governments also agreed to strengthen cooperation in food security through agricultural technology, logistics, food processing, and more resilient supply chains.

Indonesia and Thailand will also launch an Indonesia–Thailand Energy Forum to support energy security and accelerate the transition to sustainable energy. In addition, both countries pledged to deepen cooperation in the digital economy, including wider use of local currency transactions to facilitate trade and investment, while leveraging their strengths in the halal industry to develop regional and global halal value chains.

Prime Minister Anutin said the combined market of around 350 million people offers significant opportunities to expand bilateral trade and investment, expressing confidence that economic ties between the two Southeast Asian nations will continue to grow.

https://jakartaglobe.id/business/indonesia-thailand-target-20-billion-in-bilateral-trade-by-2030

03/08/2026

Prolonged Dry Season Puts Indonesia’s Rice Production at Risk

Several regions across Indonesia are experiencing crop failures as the El Niño climate phenomenon intensifies, causing prolonged drought and severe water shortages. The dry season may extend into next year, increasing pressure on agricultural production and farmers’ livelihoods.

Farmers in Java, West Nusa Tenggara (NTB), East Nusa Tenggara (NTT), and parts of Sumatra have reported declining water supplies. The Indonesian Farmers Union (SPI) said reduced rainfall, limited irrigation sources, pest outbreaks, and crop diseases have affected rice and corn cultivation.

In West Java, at least 72 hectares of rice fields in Majalengka have been damaged by extreme drought. Authorities in Bekasi have also warned that up to 1,500 hectares of rice fields could face similar risks if dry conditions continue.

Farmers in 15 subdistricts across Tangerang, Banten, are also facing potential crop failures. The prolonged lack of rainfall has reduced water availability from dams, irrigation channels, and other agricultural sources.

The situation highlights the need for stronger water management, improved irrigation systems, climate-resilient farming methods, and timely support for affected farmers to protect food production and strengthen Indonesia’s long-term food security.

[Read more on The Jakarta Post](https://www.thejakartapost.com/indonesia/2026/07/27/crop-failures-threaten-indonesia-as-dry-season-drags-on?utm_source=chatgpt.com)

03/08/2026

Indonesia Seeks Better US Tariff Terms to Protect Export Competitiveness

Indonesia is continuing consultations with the United States Trade Representative (USTR) to secure more favorable and competitive tariff terms after Washington imposed a 10% duty on Indonesian imports over alleged forced-labor concerns.

The government welcomed the USTR’s recognition that Indonesia has taken active steps to prevent and combat forced labor in global supply chains. Officials said the country already has regulations and a policy framework aimed at addressing labor-related risks.

The tariff was introduced under Section 301 of the US Trade Act of 1974 following changes to Washington’s broader tariff framework. Indonesia, along with Malaysia, Taiwan and India, faces an additional 10% tariff, while several other economies were subjected to higher duties.

Business groups warned that export-oriented manufacturers could face increased pressure, particularly companies that depend heavily on the US market. The government is therefore seeking more competitive tariff arrangements to protect market access and support affected industries.

Indonesia’s continued engagement with US trade authorities highlights efforts to strengthen bilateral economic cooperation while maintaining export competitiveness and supporting long-term growth in key manufacturing sectors.

[Read more on The Jakarta Post](https://www.thejakartapost.com/business/2026/07/24/indonesia-seeks-better-us-tariff-terms-after-10-forced-labor-duty?utm_source=chatgpt.com)

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