Latest News

France's Macron and Indonesia's Prabowo discuss strategic partnerships

On Wednesday, French President Emmanuel Macron and his Indonesian counterpart Prabowo Subito will meet in Jakarta to discuss defence ties. This is Paris' largest arms client in Southeast Asia. Indonesia is the second stop on Macron's regional tour after Vietnam where both countries signed deals valued at over $10 billion. He will fly to Singapore Thursday.

Indonesia's Foreign Ministry said that the two countries would discuss "existing partnerships" without giving any specific details. In 2022 the two countries will sign an $8.1 billion deal for defence that includes an order of 42 Rafale jet fighters from France's Dassault. They also signed a number of agreements, including those relating to ammunition and submarine development.

"Some commitments require follow-up and Indonesia showed interest in other military hardware but there have been no advances yet," said Khairul FAHMI, a military specialist at the Institute for Security and Strategic Studies, an Indonesian-based institute.

Rafale jets are not yet delivered to Indonesia. According to Antara, the chief of Indonesian Air Force Mohamad Tonny Harjono stated in February that six aircraft would arrive in Indonesia by early 2026. In addition to the Rafale agreement, Indonesia also signed a 2024 agreement with the French shipyard Naval Group for the purchase of two "Scorpene", and announced in 2023 the purchase 13 long-range radars by France's Thales.

Prabowo was Minister of Defence when these deals signed.

Paulo Castellari, the new CEO of Eramet, is part of Macron's delegation to Indonesia's mineral-rich Indonesia. Eramet Chairwoman Christel Bories said that they would be looking to discuss mining permissions in relation to Weda Bay Nickel Mine.

Indonesia has the largest known nickel reserves and is the world’s leading producer. Eramet, along with other companies, have complained about the reduction in volume allowances. The group has also been in discussions with Indonesia's newly established sovereign wealth fund Danantara about investments in the battery supply chain. Eramet is still interested to enter nickel processing, despite having dropped a plan last year to build a BASF plant. (Reporting and writing by Ananda Teresia in Jakarta and Stanley Widanto, in Paris. Editing and proofreading by John Mair.

(source: Reuters)