International News 26 May 2025
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Indonesia's Balance of Payment in the First Quarter of 2025 Deficit USD0.8 Billion
In the first quarter of 2025, Indonesia's balance of payments recorded a deficit of $0.8 billion, a development that occurred in the context of global financial market uncertainty. The nation's foreign exchange reserves stood at $157.1 billion, covering 6.5 months of imports and government external debt, exceeding the international standard of 3 months. The current account recorded a $0.2 billion deficit, which is a decrease from the previous quarter, with an increased goods trade balance surplus driven by non-oil and gas trade. Non-oil and gas exports decreased due to a global economic slowdown and lower commodity prices, while non-oil and gas imports, especially raw materials, saw a decline. The services balance deficit grew due to a decline in foreign tourist visits, leading to a lower travel services surplus. Meanwhile, the primary income account deficit increased due to higher portfolio investment returns. Despite the challenges posed by global financial markets, capital and financial transactions performance remained stable.
https://www.emitennews.com/news/neraca-pembayaran-indonesia-triwulan-i-2025-defisit-usd08-miliar
M2 Money in Circulation in April 2025 Grows Lower
In April 2025, Bank Indonesia reported a sustained growth in economic liquidity, specifically noting a 5.2% increase in broad money supply (M2) compared to the previous month's 6.1%, reaching Rp9,390.0 trillion. This growth was driven by a 6.0% increase in narrow money supply (M1) and a 2.4% increase in quasi-money. The growth of M2 was largely influenced by lending, which grew by 8.5%, and net bills to the central government, which declined by 21.0%. Furthermore, there was a 3.6% increase in net foreign assets compared to the previous month's 6.0% growth. Overall, these key indicators are indicative of the ongoing expansion of economic liquidity and lending activities in April 2025.
https://www.emitennews.com/news/uang-beredar-m2-pada-april-2025-tumbuh-lebih-rendah
Trump Agrees to Extend Deadline After Threatening E.U. With 50% Tariff, With Talks Set to ‘Begin Rapidly’
Following a telephone conversation with Ursula von der Leyen, Donald Trump has agreed to extend the deadline for the EU to 50% tariffs. Trump and von der Leyen are planning to initiate trade discussions at the earliest opportunity regarding the important trade relationship between the US and the EU. Trump initially threatened to impose a 50% tariff on the EU with effect from 1 June 2025. The European Union is well-known as the United States' main trading partner and the world's largest trading bloc. Despite Trump's criticism of the EU's trade barriers, both parties have expressed their commitment to working together to advance trade negotiations. Van der Leyen has stated that she is prepared to negotiate trade deals with the US in a decisive and expeditious manner.
https://time.com/7288483/trump-european-union-tariff-threat-trade-war-concerns/