US says talks on Indonesia trade preference to conclude soon

A worker unloads palm fruit at a palm oil plantation on Sumatra island. (Reuters)
Updated 06 November 2019

US says talks on Indonesia trade preference to conclude soon

JAKARTA: US Commerce Secretary Wilbur Ross said on Wednesday Washington’s review of a trade preference facility for Indonesia would conclude soon, and predicted “far more investment” by US companies in Southeast Asia’s biggest economy.

The Office of the United States Trade Representative (USTR) has been reviewing Indonesia’s eligibility for the Generalized System of Preferences (GSP) facility for more than a year due to concerns about market access for US goods, services and investment.

Speaking after meetings with Indonesian ministers and ahead of a meeting with President Joko Widodo, Ross said both sides had agreed to step up efforts to conclude the review.

“We are comfortable and confident that very quickly (the outstanding issues) could be resolved,” Ross told reporters in the Indonesian capital.

“I think we’ll see far more investment from American companies and far more bilateral trade than exist right now.”

The GSP program gives privileged trade status to developing economies. By retaining GSP and opening up more market access both ways, Indonesia and the US aim to more than double their trade in the next five years to $60 billion, Indonesian Chief Economic Affairs Minister Airlangga Hartarto said.

Total two-way trade was worth $28.6 billion last year, according to Indonesian Trade Ministry data.

“We want to open access for our furniture and textiles and we have programs to import more cotton and wheat from the US,” Hartarto said.

Some 80 percent of the negotiations for the GSP facility, which reduces duties on $2 billion of Indonesian exports, have been completed, he said, adding that talks should be wrapped up before Christmas.

US companies including automotive firm Tesla and conglomerate Honeywell were seeking business opportunities, and Jakarta had promised improvements in the investment climate, Hartarto said.

Alibaba confirms huge Hong Kong public listing worth at least $13bn

Updated 15 November 2019

Alibaba confirms huge Hong Kong public listing worth at least $13bn

  • Over-allocation options could take the total value to more than $13 billion, making it one of the biggest IPOs in Hong Kong for a decade
  • Alibaba Chief Executive Officer said the group wanted to participate in Hong Kong’s future

HONG KONG: Chinese technology giant Alibaba on Friday confirmed plans to list in Hong Kong in what it called a $13 billion vote of confidence in the turbulent city’s markets and a step forward in its plans to go global.
The enormous IPO, which Hong Kong had lobbied for, will come as a boost for authorities wrestling with pro-democracy protests that have tarnished the financial hub’s image for order and security and hammered its stock market.
Alibaba will offer 500 million shares at a maximum of HK$188 apiece to retail investors, the company said. The number eight is considered auspicious in China.
Over-allocation options could take the total value to more than $13 billion, making it one of the biggest IPOs in Hong Kong for a decade after insurance giant AIA raised $20.5 billion in 2010.
Alibaba had planned to list in the summer but called it off owing to the city’s long-running pro-democracy protests and the China-US trade war. The US and China are now working on sealing a partial trade deal.
Daniel Zhang, Alibaba Chief Executive Officer, said the group wanted to “contribute, in our small way, and participate in the future of Hong Kong.”
“During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright,” he said.
The firm’s shares are already traded in New York. A second listing in Hong Kong is expected to curry favor with Beijing, which has sought to encourage its current and future big tech firms to list nearer to home after the loss of companies such as Baidu to Wall Street.
In the statement, Zhang said that when Alibaba went public in 2014 it “missed out on Hong Kong with regret.”
Mainland authorities have also stepped up moves to attract such listings, including launching a new technology board in Shanghai in July.
The listing comes after the city’s exchange tweaked the rules to allow double listings, while Chief Executive Carrie Lam had also been pushing Alibaba’s billionaire founder Jack Ma to sell shares in the city.
“The listing in Hong Kong will allow more of the company’s users and stakeholders in the Alibaba digital economy across Asia to invest and participate in Alibaba’s growth,” the company said.
It has long been expected to launch a multibillion-dollar stock listing in Hong Kong but appeared to postpone the offering because of political and economic turmoil.
Hong Kong’s key Hang Seng Index rose 0.48 percent in morning trading following the announcement
Chinese shoppers set new records for spending on Monday’s annual 24-hour “Singles’ Day” buying spree, despite an economic slowdown in the country and the worries over the US trade war.
It said consumers spent $38.3 billion on its platforms over that stretch, up 26 percent from the previous all-time high mark set last year.
Alibaba also said it saw record amounts of cross-border sales, underlining its plans to expand globally.
“Globalization is the future of Alibaba Group. We firmly believe the marriage of digital technology and commerce will bring about unprecedented change that will not be limited by borders,” Zhang said.