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There’s this idea in social media that you’re supposed to choose a lane. Either you grow “purely organic”, patiently waiting for the algorithm to reward you, or you automate everything and turn your account into some kind of growth machine that runs without you.
In reality, nobody who actually tries to grow an account long-term sticks to either extreme.
Pure organic growth is slow enough to make you question whether anything is happening at all. Pure automation without real content is just noise with extra steps.
Most accounts that survive past the first few months end up somewhere in between, even if nobody says it out loud.
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When people hear “automation”, they still imagine spam bots or engagement farms from years ago. That’s not really what we’re talking about anymore.
Used properly, automation isn’t about replacing activity. It’s about smoothing out the worst part of it – posting something decent and watching it sit at zero for hours because the algorithm didn’t pick it up.
That initial silence is where a lot of good content dies. Not because it’s bad, but because nothing happens around it early enough.
Automation in this context is just early support. A bit of initial visibility, some signal that the post isn’t completely invisible, enough to get it into circulation instead of letting it sink immediately.
Organic-only accounts usually hit the same pattern. At the beginning, everything feels like progress. A few posts perform, you get your first audience, and there’s a sense that things are starting to move.
Then it slows down. Not dramatically, just quietly. You keep posting, improving, adjusting – but the results stay in the same range. It’s not that the content gets worse. It’s that platforms don’t scale reach in a predictable way.
That’s usually where frustration starts. Not failure, just repetition. You’re doing the same work, but the outcome doesn’t change much. And that’s a difficult place to stay in for long.
On the other side, accounts that rely only on automated promotion usually run into a different problem. They can create activity, they can push numbers, they can make a profile look alive. But without real content behind it, there’s nothing for people to actually connect to.
No point of view, consistency and reason to follow.
People notice that, even if they don’t consciously analyze it. An account can look active and still feel empty. Automation can amplify reach, but it can’t replace identity.
The more stable setups usually combine both sides. Organic content is responsible for the actual message – what the account stands for, what it’s trying to say, why it exists in the first place.
Automation supports distribution – making sure that message doesn’t get lost immediately after it’s published. They solve different problems:
Most accounts struggle because they only solve one of those properly.
There’s also a simpler factor that often gets ignored: perception. People don’t evaluate accounts in isolation. They compare them instantly to everything else in their feed.
An account with visible engagement feels more established. Not because people sit and analyze metrics, but because inactivity is noticeable.
Good content with no traction creates hesitation. Not rejection – just a pause. And on social media, hesitation is usually enough for someone to move on.
Adding early visibility reduces that friction. It makes the account feel like it already exists in circulation, not like it’s still trying to get noticed.
In practice, most teams don’t frame this as theory. They just build a workflow.
Organic content is used for messaging, storytelling, positioning. That part doesn’t change.
Promotion, including automated support, is used when something deserves more reach than it would naturally get in the first hour or two.
Some posts are left alone, some are boosted, while others are tested and dropped. It’s less about forcing outcomes and more about not letting good content disappear by default.
Services like Top4SMM are often used in that layer – not as a replacement for marketing, but as a way to stabilize visibility when organic reach is unpredictable. If you want to compare options, you can see details.
A common mistake is treating growth like a short-term push. People post more, experiment harder, try to “fix” the algorithm in a week or two – and then step back when nothing changes immediately.
What actually works is much less dramatic. Steady output. Steady distribution. No spikes needed.
When both sides are consistent, results start compounding. Slowly at first, then more noticeably over time.
There isn’t really a pure way to grow on social media anymore. Organic alone struggles with reach. Automation alone struggles with meaning.
The accounts that keep growing are the ones that combine both – content that actually says something, and distribution that makes sure it doesn’t disappear on impact.
Everything else mostly comes down to hoping for timing to behave like a strategy.
Chinese stocks advanced after fresh manufacturing data pointed to sustained factory expansion and President Xi Jinping reaffirmed his commitment to promoting high-quality economic development. The upbeat market reaction reflected growing optimism over the resilience of China’s industrial sector and the continued strength of technology and innovation-driven industries.
However, investor sentiment remains tempered by concerns over uneven economic growth, with persistent weakness in consumer confidence, the labour market and the property sector continuing to weigh on the broader recovery.
China’s manufacturing sector expanded for a seventh consecutive month, marking its strongest quarterly performance since late 2020. The data reinforced expectations that industrial production remains a key pillar of economic growth despite ongoing challenges in other parts of the economy.
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The stronger-than-expected factory activity provided investors with reassurance that export-oriented manufacturing and industrial output continue to support China’s recovery.
President Xi Jinping renewed his pledge to pursue high-quality development, signalling that Beijing remains committed to an economic strategy centred on technological innovation, industrial upgrading and sustainable long-term growth.
The remarks reinforced expectations that policymakers will continue prioritising advanced manufacturing, strategic industries and innovation rather than relying solely on traditional stimulus measures to support the economy.
Technology-related stocks led gains as investors increased exposure to sectors expected to benefit from China’s industrial and technological ambitions. Chipmaking equipment, biotechnology and software companies posted strong advances, reflecting continued confidence in industries viewed as central to China’s long-term economic transformation.
The rally highlights investors’ preference for sectors with stronger earnings potential and policy support.
Alongside technology stocks, gains also spread to agriculture and property-related shares, suggesting investor optimism is gradually broadening beyond high-growth industries.
Although these sectors continue to face structural challenges, their recovery indicates improving market sentiment and expectations that policy support could help stabilise weaker areas of the economy.
Despite encouraging manufacturing data, investors remain cautious about China’s broader economic outlook. Consumer spending continues to be constrained by weak confidence, labour market pressures and the prolonged downturn in the property sector, creating an uneven recovery across different parts of the economy.
The divergence between strong industrial performance and softer domestic demand continues to shape investment strategies and policy expectations.
Chinese markets are likely to remain supported by resilient manufacturing activity, continued policy backing for innovation and expectations of further measures to sustain economic growth. However, the durability of the rally will depend on whether improvements in industrial production translate into stronger domestic consumption and broader economic recovery.
Investors will closely monitor upcoming economic data and government policy announcements for signs that Beijing can address persistent weaknesses in the property market, employment and consumer confidence while maintaining momentum in high-value manufacturing and technology sectors.
With information from Reuters.
The S&P Global Japan Manufacturing PMI was revised slightly lower to 54.8 in June 2026 from 54.9 in the preliminary estimate. However, the reading comfortably beat May’s 54.5 and marked the sixth consecutive month of expansion, driven by accelerating output and new orders.
Hyunjoon Kwon, director general for aerospace policy at the Korea AeroSpace Administration, speaks during an interview with Asia Today on Friday. Photo by Asia Today
June 30 (Asia Today) — South Korea is seeking to connect the growth of its commercial space industry with stronger national security capabilities as emerging technologies blur the boundaries between the private and public sectors.
The expansion of security concerns into space, drones and artificial intelligence has increased the importance of the Korea AeroSpace Administration, which is responsible for developing the country’s aerospace industry.
The agency is working with the National Intelligence Service and other government organizations on satellite cybersecurity and broader aerospace security policies.
Hyunjoon Kwon, director general for aerospace policy at the agency, told Asia Today in an interview Friday that space is no longer solely a scientific field.
“Space has moved beyond science to become a domain that can affect both security and industry,” Kwon said. “We need a mutually reinforcing relationship between the market and the public sector.”
Asked how the global space security environment is changing, Kwon said competition is no longer limited to the number of satellites a country possesses.
“The key question is how reliably a country can use and protect satellite communications and satellite imagery,” he said.
Space-based services have been used directly in military operations and critical national infrastructure since the start of the Russia-Ukraine war, Kwon said.
Countries also face increasingly complex threats, including GPS jamming and spoofing, disruptions to satellite communications, cyberattacks and the collision or uncontrolled reentry of objects in space.
Kwon said the agency is developing a national space situational awareness system to strengthen South Korea’s ability to monitor and predict space-related risks.
It is also preparing a cybersecurity response framework to protect space-based services used by the private sector, government and military.
South Korea has rapidly accumulated capabilities in launch vehicles, satellite development and satellite data applications, Kwon said. Its military space capabilities have also expanded.
However, the country still needs to strengthen its domestic production of critical materials, components and software, he said.
Other areas requiring improvement include space situational awareness, satellite cybersecurity and the creation of a sustainable commercial market for space services.
“That is why the growth of private space companies and greater independence in core technologies are becoming even more important,” Kwon said.
Cooperation among the private sector, government and military has entered a stage of institutional development since the establishment of the Korea AeroSpace Administration, he said.
The cooperative channels include a future defense science and technology policy council with the Defense Ministry, an aerospace project memorandum with the Defense Acquisition Program Administration and a satellite cybersecurity consultative body with the National Intelligence Service.
Kwon said the cooperation now extends beyond individual projects to include policy, technology and security.
The agency is seeking to create a structure in which private-sector technology is connected to government and national security requirements, while public and defense demand supports the growth of commercial companies.
Kwon also discussed the government’s recently announced strategy to foster innovative companies in emerging security industries.
“Aerospace is a strategic field that influences both security and industry, extending beyond the boundaries of science and technology,” he said.
Satellite communications, satellite data, unmanned aircraft and space materials and components have significant commercial growth potential while also meeting direct security needs, Kwon said.
The agency plans to focus on establishing a cycle in which the creation of new industries strengthens national security capabilities and security demand encourages further technological innovation.
The plans include developing core technologies for a space data center under the K-Moonshot initiative and building a national platform that will make satellite information available for broader use.
The agency also plans to develop artificial intelligence-powered unmanned aircraft and electric or hybrid vertical takeoff and landing aircraft.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260629010010198
MANCHESTER, England — Andy Burnham, likely the next U.K. prime minister, pledged Monday to give away a chunk of his power by handing greater autonomy to local leaders in a “circuit-breaker” for the sclerotic British state.
The former mayor of Greater Manchester also said he would move part of the prime minister’s office from London’s 10 Downing St. to northwest England as part of “the biggest rebalancing of power our country has seen.”
“Growth cannot be ordered from the top down. Instead, it can only be nurtured from the bottom up,” Burnham said in a speech aimed at bringing voters, Labour Party colleagues and financial markets up to speed with his economic vision.
Burnham is the strong favorite to replace Prime Minister Keir Starmer, who announced his resignation last week.
“If councils can’t fix potholes, what chance do they have of bringing forward major regeneration schemes to get growth going?” Burnham said. He set out a 10-year plan to get “good growth in every postcode,” in a country where wealth and power are concentrated in London and the south of England.
He said he would reverse almost two decades of low growth since the 2008 financial crisis through an approach dubbed “Manchesterism” — harnessing private and public money to invest in areas like transport, housing and infrastructure. He also pledged to create new industrial jobs and better educational opportunities, and to reform the U.K.’s inefficient and expensive privatized water and energy utilities.
During the speech at the People’s History Museum in the city where he spent nine years as mayor, Burnham said a new government office in Manchester – dubbed “No. 10 North” — would oversee regional development and become “the nerve center of a rewired Britain,” tasked with equalizing living standards across the country. Regional mayors would get more power over housing, welfare and education as part of his planned reforms.
Burnham’s rousing speech was short on specifics about where the government would find more money, and he didn’t take questions from journalists.
Burnham won praise for his role in revitalizing and regenerating Manchester, but he has not served in a U.K. government for almost two decades, and may struggle to replicate “Manchesterism” on a U.K.-wide scale.
The Institute for Public Policy Research, a left-leaning think tank, said Burnham is right to focus on “rebalancing Britain.”
“The U.K.’s concentration of power and opportunity in Westminster has held back growth, productivity and living standards for too long,” said IPPR Executive Director Harry Quilter-Pinner. “The real test now is delivery.”
Matthew Flinders, a politics professor at the University of Sheffield, said replicating Burnham’s Manchester approach on a national level would require “a fundamental shift” in the way politics is done in Britain.
“And at the heart of that would be moving from a very traditional, elitist, centralized model of politics toward something that is in many ways far more European, far more based on power-sharing in order to develop long-term policymaking capacity,” he said.
Burnham will be aware that Starmer also announced a 10-year mission — the equivalent of two full terms in government —- to transform Britain soon after he was elected in a landslide in July 2024. Starmer is leaving after two years in office marred by missteps and judgment errors that eroded his standing with his party and the public.
Burnham won a special election for a seat in Parliament on June 18 and was sworn in as a lawmaker on June 22, the same day Starmer announced that he will resign as soon as a successor is chosen.
Burnham is so far the only contender in the Labour Party leadership contest. If no one challenges him, he will become prime minister by July 20.
While Burnham is considered more charismatic than the stolid Starmer, he will face many of the same political and economic challenges, including a sluggish economy, tattered public services and a cost-of-living squeeze. He will also be constrained by the platform the center-left Labour Party was elected on in 2024, with its pledges not to increase taxes on working people.
And like other NATO countries, the U.K. is under pressure to dramatically increase defense spending to counter a more aggressive Russia and less reliable United States.
The government’s long-awaited defense investment plan — which sparked the resignation of Defense Secretary John Healey on June 11 — is expected to be published before a NATO summit in Turkey on July 7 and 8. Starmer’s successor will be expected to stick to the commitments in the plan.
“Andy Burnham’s big idea is to shuffle power between politicians,” said opposition Conservative Party Chairman Kevin Hollinrake. “Not fix the welfare system. Not cut the taxes strangling working families and British business. Not fund the defense our country desperately needs.”
Grant and Lawless write for the Associated Press. Lawless reported from London. AP writer Brian Melley contributed to this report.
iQoncept/iStock via Getty Images
Consumer discretionary stocks remain in focus as companies navigate shifting consumer spending, travel demand, e-commerce growth, and evolving economic conditions across retail and leisure markets.
In light of this, below is a list of the top S&P 500 Consumer Discretionary holdings
Earnings Call Insights: FedEx Freight Holding Company, Inc. (FDXF) Q4 fiscal 2026
“We successfully launched as a stand-alone LTL carrier,” and “on June 1, we proudly rang the opening bell at the New York Stock Exchange, officially marking our debut as a
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An infographic compares Nongshim and Samyang Foods’ first-quarter sales and operating profits in the United States, China and Japan, highlighting the companies’ differing overseas growth strategies. Data from Financial Supervisory Service and the companies. Infographic by Asia Today and translated by UPI
June 23 (Asia Today) — South Korea’s two leading instant-noodle makers posted sharply different results across major overseas markets during the first quarter, with Samyang Foods growing rapidly in the United States and Nongshim generating steadier profits in China and Japan.
Samyang Foods recorded U.S. sales of 185.3 billion won ($120.3 million) during the first three months of the year, up 37% from the same period in 2025, according to industry data released Tuesday.
Its U.S. operating profit jumped 325% to 22 billion won ($14.3 million).
Nongshim posted U.S. sales of 141.3 billion won ($91.8 million) and an operating profit of 12.3 billion won ($8 million) during the same period.
Samyang’s growth was driven primarily by the continued popularity of its spicy Buldak brand and the expansion of its distribution network.
The company has increased the number of its products sold through Walmart, Costco and other major U.S. retailers. Sales of products tailored to local preferences, including Buldak Mac and Cheese and Buldak Ramen Habanero Lime, have also increased.
“The distinctive flavor and concept of the Buldak brand are giving us a competitive advantage in the U.S. market,” a Samyang Foods representative said.
The company plans to expand its presence in North America by strengthening the brand and increasing distribution through large retailers, the representative said.
Nongshim is also seeking a larger share of the North American market through Shin Ramyun and its expanding line of stir-fried noodles.
The company has improved its production and logistics efficiency by raising operating rates at its factories near Los Angeles. Its products also continue to generate steady sales through Walmart, Costco and other major retailers.
The competitive picture was different in China, where Nongshim recorded more stable profitability despite generating considerably less revenue than Samyang.
Nongshim’s Chinese operations reported first-quarter sales of 52.7 billion won ($34.2 million), up 16% from a year earlier. Operating profit rose 20% to 7.2 billion won ($4.7 million).
The results were supported by continued demand for Shin Ramyun, Chapagetti and Neoguri.
Samyang generated much higher sales in China but experienced a steep decline in profit.
Its first-quarter Chinese sales rose 36% to 171.3 billion won ($111.2 million), while operating profit fell 77% to 1.3 billion won ($844,000).
Industry analysts attributed the decline to Samyang’s reorganization of its distribution partners and inventory remaining after weaker-than-expected sales during China’s Singles’ Day shopping festival last year.
Samyang said it remains committed to long-term growth in China.
The company plans to strengthen Buldak’s brand position while expanding beyond instant noodles into products such as sauces and air-dried noodles.
Samyang is also constructing a factory in Jiaxing, Zhejiang province. It recently expanded the planned number of production lines at the plant from six to eight.
The Jiaxing factory is scheduled to begin operating in 2027. Samyang expects local production to improve manufacturing and distribution efficiency in China.
Nongshim also delivered stronger profitability in Japan.
Its Japanese subsidiary recorded first-quarter sales of 33.9 billion won ($22 million), up 20% from a year earlier. Operating profit increased 75% to 1.66 billion won ($1.1 million).
The company’s performance was supported by growing recognition of Shin Ramyun and improved bargaining power in price negotiations with retailers.
Samyang’s Japanese business recorded sales of 9.9 billion won ($6.4 million), an increase of 34%, but operating profit fell 31% to 240 million won ($156,000).
Marketing expenses and initial investments associated with expansion into convenience stores, Don Quijote and Costco weighed on profitability, according to industry analysts.
The results suggest that the rivalry between the two companies is developing differently in each region.
Samyang is using the global recognition of Buldak to drive rapid growth in North America, while Nongshim is building a more stable earnings base in China and Japan through established products led by Shin Ramyun.
Both companies are expanding production capacity as global demand for Korean instant noodles continues to grow.
In addition to Samyang’s Jiaxing factory, Nongshim is constructing an export-only plant at the Noksan National Industrial Complex in Busan.
Nongshim plans to complete the factory and begin production during the second half of the year. The facility is expected to become a major base for expanding the company’s global supply capacity.
“Success in overseas food markets depends not only on brand strength but also on production capacity, distribution networks and a stable supply system,” a retail industry official said.
“Samyang is currently showing strong growth in North America, but Nongshim is also expanding production and strengthening its localization strategy,” the official said. “Competition in the global market will become more intense.”
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260624010008206
In contrast to heat pumps, continuing record sales of electric cars indicate they are all but set to replace their petrol and diesel counterparts in the coming years on UK roads.
Emma Pinchbeck, CEO of the Climate Change Committee, praised the improvement in greener transport.
“We’ve made big progress on things like electric vehicles, where one in four cars being bought in the UK today is now an EV.”
She said the growth had been accelerated by the Iran fuel crisis, which has seen significant increases in petrol and diesel prices at the pump pushing people to seek out other options.
“We can see in the numbers what people want – cheap cars and cars that will save them money, particularly as fossil fuels are volatile,” she said.
But the industry body, Society of Motor Manufacturers (SMMT), said most of this demand had been brought about by huge discounts offered by car manufacturers.
“This has cost the industry more than £10 billion since 2024 – an unsustainable amount when that money should be going into R&D, manufacturing and the workforce,” said Mike Hawes, CEO of SMMT.
It supported the government’s plan to weaken its Zero Emission Vehicles (ZEV) mandate – which sets a target for number of EVs manufacturers produce and a penalty for failing to meet that target.
The UKCCC disagreed and urged the government to keep the policy.
South Korean soldiers escort a group of Korean War veterans from Commonwealth nations during a ceremony marking the 73rd anniversary of the Battle of Kapyong, in Gapyeong County, northeast of Seoul, South Korea. The Battle of Kapyong, from 22 to 27 April 1951, was fought between United Nations Command forces composed mainly of Canadian, Australian, and New Zealand troops, and invading Chinese forces along the Gapyeong (Kapyong) River valley. Photo by YONHAP / EPA
June 23 (Asia Today) — South Korean power equipment maker LS Electric is strengthening its ties with communities in Utah by honoring Korean War veterans and investing in local education as it expands in the fast-growing North American power market.
Demand for power equipment has surged as artificial intelligence companies build more data centers across North America. Against that backdrop, LS Electric Chairman and Chief Executive Officer Ja-Kyun Koo has emphasized what the company describes as a management strategy based on long-term trust with local communities.
LS Electric said Koo has pursued the strategy through LS Electric Utah, formerly MCM Engineering II, in Cedar City. The South Korean company acquired the operation in 2022 and has since directed an expansion of its production facilities.
Koo has highlighted a Korean War engagement involving soldiers from southern Utah as a historical link between the state and South Korea.
On May 26, 1951, 240 members of the Utah National Guard’s 213th Armored Field Artillery Battalion encountered a Chinese force of more than 4,000 troops near Gapyeong in Gyeonggi Province.
The engagement became known in Utah as the “Miracle at Kapyong.” Accounts maintained by the Utah National Guard say the soldiers fought off the advancing force without losing a member of the unit in the battle.
Families and descendants of the veterans remain part of the community around Cedar City, where LS Electric Utah is based.
Koo said the soldiers’ service in an unfamiliar country demonstrated the kind of courage and commitment that a Korean company operating in Utah should recognize.
LS Electric this year sponsored a Southern Utah University program supporting Korean War veterans. The company also paid the travel expenses of surviving veterans who visited South Korea in May for a ceremony marking the 75th anniversary of the Utah unit’s action near Gapyeong.
The company has also supported the development of science, technology, engineering and mathematics education facilities at Southern Utah University as part of its efforts to train workers for the region’s future industries.
LS Electric joined a separate initiative led by the Korea Chamber of Commerce and Industry to connect Korean companies operating in the United States with veterans who previously served with U.S. Forces Korea.
The company said the program could help Korean businesses recruit workers who already have experience with South Korea and its culture.
LS Electric’s community engagement has accompanied a sharp increase in orders for equipment used in North American data centers.
Korea Investment & Securities said LS Electric secured two North American data center equipment projects during the second quarter with a combined value of 489.3 billion won, or about $318 million.
The brokerage expects the company’s North American data center orders to increase by more than 50% from a year earlier and surpass 1.5 trillion won, or about $974 million, in 2026.
“Today, our firm footing in the U.S. market rests on the noble sacrifice of Utah veterans who fought for freedom and peace,” Koo said.
“Remembering and honoring the heroes who created the Miracle at Kapyong is a responsibility that companies should fulfill,” he said.
Koo said businesses built on strong relationships with their communities would be better positioned to achieve stable, long-term growth.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260623010008080
1 of 3 | Government officials, lawmakers, researchers and defense industry executives attend a seminar marking the 20th anniversary of South Korea’s Defense Acquisition Program Administration in Seoul on Friday. Photo by Asia Today
June 19 (Asia Today) — South Korea is seeking to transform its defense industry into a national growth engine by integrating military procurement, weapons exports, advanced technology and industrial policy, government and industry officials said Friday.
Officials at a public-private seminar in Seoul rejected the long-standing argument that growing foreign orders could divert production capacity from the South Korean military and delay domestic weapons deliveries.
Instead, they said an analysis of about 2,000 South Korean defense companies found that exports increased factory utilization, encouraged investment in research and production facilities and eventually reduced manufacturing costs.
The findings were presented at a seminar titled “A New Leap Forward in Acquisition and the Defense Industry,” held at the Fairmont Ambassador Seoul in the city’s Yeouido financial district.
The Defense Acquisition Program Administration organized the event as it marked the 20th anniversary of its establishment.
Participants included lawmakers, officials from the defense, industry, science and small-business ministries, defense company executives and academic researchers.
They called for an end to treating military procurement and defense exports as separate policy areas.
Lee Yong-cheol, minister of the Defense Acquisition Program Administration, said South Korea’s annual defense exports had grown from about $250 million when the agency was established to $15.4 billion last year.
“Defense exports are no longer merely a supplement to domestic military procurement,” Lee said. “They have become a central growth engine driving the Republic of Korea as a whole.”
Lee said South Korea also needed to move beyond selling individual weapons.
He proposed combining weapons with energy systems, infrastructure, maintenance, repair and overhaul services and other forms of industrial cooperation.
“The era of selling weapons as stand-alone products is over,” Lee said. “We will transform the K-defense paradigm through cross-industry package cooperation.”
Lawmakers from South Korea’s governing and opposition parties pledged bipartisan legislative support for faster procurement and stronger financing for small and midsized defense companies.
They said a system that can take about 15 years to plan, develop and deploy a weapon is not suitable for an era in which artificial intelligence, drones and robotic systems evolve rapidly.
Participants also cited research indicating that financial instability among smaller suppliers, rather than export production, was a more important cause of delivery delays.
They called for expanded government-backed financing to prevent small manufacturers in the defense supply chain from being overwhelmed by debt and working-capital shortages.
Study links exports to stronger domestic production
South Korea’s defense industry has long debated whether large export contracts weaken or strengthen the country’s own military procurement.
Critics have warned that foreign orders could occupy production lines and delay the delivery of weapons to South Korean forces.
Supporters have argued that exports create economies of scale, preserve production capacity and lower the price paid by the South Korean military.
Research presented at Friday’s seminar supported the second view.
A team led by researchers from Myongji University analyzed data from about 2,000 South Korean defense-related companies.
The analysis found that increasing exports produced an immediate rise in factory utilization. Higher utilization was then associated with greater investment in research, development and production facilities.
Researchers said the benefits became more evident about three years after an export increase.
The analysis identified improvements in operating profit, lower production costs and greater independence in critical technologies after that period.
Repeated production also allowed factory workers and engineers to improve their skills and reduce defects, a process commonly described as a learning effect.
At the same time, producing weapons in larger quantities spread fixed development and manufacturing expenses across more units.
Researchers said those effects increased the competitiveness of South Korean products in foreign markets while potentially lowering the cost of weapons purchased by the South Korean military.
Industry experts cited South Korea’s large exports of K2 tanks and K9 self-propelled howitzers to Poland as an example.
They said the contracts increased domestic production, helped reduce unit costs and accelerated work on upgraded models.
Kim Myung-keun, an executive at Hyundai Rotem, said the company achieved economies of scale after receiving Poland’s large K2 tank order.
“Mass production lowered costs, reduced the acquisition cost for our own military and accelerated the development of upgraded models,” Kim said.
Yoon Byung-jo, an executive at SNT Motiv, said repeated production generated through large export orders also strengthened technical capabilities on factory floors.
“The learning effect accumulated by technicians during repeated production is the most powerful tool for reducing defects in critical components and increasing technological independence and localization,” Yoon said.
Lee Jung-hyun, a Myongji University professor involved in the study, said the analysis did not identify export volume as the principal cause of delayed deliveries.
“The real causes of delivery delays were companies’ debt ratios and financial soundness,” Lee said. “Exports instead improved operating profits and technological capabilities after a time lag of about three years.”
Lee said the government should strengthen the financial stability of smaller defense companies rather than restrict exports.
Officials seek to shorten 15-year procurement cycle
Government officials said South Korea’s traditional weapons acquisition process is too slow to keep pace with civilian advances in AI, drones, robots and human-machine teaming systems.
Weapons programs can take about 15 years from initial planning through development and operational deployment.
Officials said that schedule risks delivering technology that has already become outdated by the time it reaches military units.
Won Jong-dae, an assistant defense minister, said the existing system had become a national security obstacle.
“In the age of AI and drones, an acquisition process that takes 15 years is an impediment to security,” Won said.
He said the government would seek legislation tentatively called the Advanced Defense Capabilities Projects Act to shorten the process from initial requirements planning through deployment.
Kim Seong-su, a senior research and development official at the Science and Technology Ministry, said innovation in the civilian sector was advancing more quickly than military technology.
Kim called for an adaptive research and development system that would allow mature commercial technologies to be introduced into the military without passing through the full conventional development process.
The acquisition agency said it plans to expand rapid-introduction programs, particularly for drones and AI-related technologies.
The programs would allow the military to test and deploy promising civilian products more quickly while making adjustments based on operational experience.
Jeong Hwan, chief executive of infrared sensor manufacturer i3system, said smaller companies with advanced commercial technologies often cannot withstand the military’s complicated testing requirements and lengthy acquisition schedule.
He urged the government to make rapid acquisition programs more flexible and accessible to technology companies.
Financial support sought for smaller suppliers
Officials said South Korea must also strengthen small and midsized companies that produce components and materials for major weapons manufacturers.
Park Yong-soon, a senior official at the Ministry of SMEs and Startups, said the research presented Friday showed that financial weakness was a major source of supply-chain disruption.
Park said the government would shift policy toward stronger financial support for vulnerable suppliers and seek to increase the share of domestic defense revenue generated by small companies.
Smaller companies currently account for about 18% of South Korean defense industry sales. The government aims to raise the proportion to 25%.
Officials said those businesses can face severe cash-flow pressures because defense contracts require lengthy development, testing and certification before companies receive full payment.
The problem can become more serious when a small supplier must expand production rapidly to meet a major overseas order.
Park said the government must ensure that otherwise competitive companies do not collapse because they cannot obtain sufficient operating capital.
Park Dong-il, a senior official at the Industry Ministry, also warned that South Korea’s export portfolio remained concentrated in ground weapons.
More than 60% of the country’s defense exports come from land-based systems, he said.
Park said the government would work to diversify the industry into aerospace, next-generation satellites and advanced naval vessels while strengthening the domestic manufacturing and component ecosystem.
South Korea plans national security export packages
The acquisition agency said future export efforts would go beyond individual tanks, aircraft or artillery systems.
The government plans to package defense products with energy projects, transportation and industrial infrastructure, information and communications technology, maintenance services and technology transfers.
Officials described the approach as exporting an integrated security platform rather than a single weapon.
They cited Poland as a model.
South Korean arms agreements with Warsaw have included not only K2 tanks, K9 howitzers and other weapon systems but also plans for local production, technology cooperation, training and long-term maintenance.
An industry official said future transactions could involve building a partner country’s broader security and industrial system.
“The business will no longer be about exporting one tank,” the official said. “It will become a platform business that exports an entire national security system.”
Such packages can help importing countries create domestic jobs, develop supply chains and maintain weapons locally.
They can also give South Korean companies access to long-term revenue from training, spare parts, upgrades and depot-level maintenance after the initial sale.
The approach, however, requires coordination among several ministries because infrastructure, export financing and industrial cooperation extend beyond the authority of the acquisition agency.
Kim Il-dong, deputy minister of the Defense Acquisition Program Administration, said procurement and exports should be viewed as two sides of the same coin.
Kim said the acquisition agency could not achieve South Korea’s defense industry goals on its own.
He called for coordinated action by the defense, science, industry and small-business ministries to develop the sector as a strategic national industry.
Seoul targets 5% share of global defense market
The Defense Acquisition Program Administration said it aims to increase South Korea’s share of the global defense market to at least 5% and establish the country as one of the world’s four largest defense exporters.
Officials said South Korea’s defense industry had already approached the global top five based on its 2025 export performance.
Future growth will depend on moving beyond the country’s current strength in tanks, armored vehicles and artillery, they said.
The government plans to support companies working in AI, space systems, drones, advanced ships and autonomous and human-machine teaming technologies.
It also wants to foster globally competitive defense startups and companies capable of reaching valuations of more than $1 billion.
Officials and industry representatives said South Korea’s defense sector had completed an initial period of quantitative growth and now needed to focus on technology, productivity and supply-chain resilience.
“The past 20 years were a period of quantitative growth in which K-defense built weapons capabilities from the ground up,” seminar participants said. “The next 20 years should be remembered as an era of qualitative growth centered on AI, space, drones and unmanned systems.”
They said military procurement and the defense industry should no longer be treated as separate areas.
Instead, both should be viewed as parts of a single strategic industry supporting South Korea’s security, technological development and economic growth.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260619010006831
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The world’s most valuable company, the chipmaker Nvidia, priced a $25 billion (€21.5bn) bond offering on Monday, marking its first issuance since 2021 and one of the largest by a technology company this year.
The deal was originally pencilled in at around $20 billion (€17.2bn) but was enlarged after demand ran more than three times the size of the bond, according to a person familiar with the matter cited by Bloomberg.
Investor appetite was the headline of the sale.
Orders reached as high as $85 billion (€73.2bn), allowing Nvidia to upsize the transaction and tighten its borrowing costs in the process.
The timing was also favourable.
The announcement of a US-Iran framework deal to end the conflict in the Middle East steadied credit markets, pushing investment-grade spreads to their narrowest levels since early February, before the Iran war began.
That backdrop helped Nvidia lock in relatively cheap long-term financing.
According to Bloomberg Intelligence analyst Robert Schiffman, inexpensive long-dated debt lowers Nvidia’s weighted average cost of capital and helps bankroll its AI investments without threatening its AA credit rating.
A company spokesperson stated that the proceeds would be used for general corporate purposes, including repaying and refinancing existing notes.
Nvidia last tapped the investment-grade market in June 2021, when it sold $5 billion (€4.3bn) of notes across four maturities, according to a regulatory filing.
The contrast in scale underscores how quickly its financing needs have grown alongside the data centre build-out and increased demand from hyperscalers.
Nvidia joins a queue of technology giants raising vast sums to fund AI infrastructure.
Meta and Oracle have each issued $25 billion (€21.5bn) in bonds this year, while Amazon completed a single $37 billion (€31.8bn) deal, the largest US investment-grade offering of this year before Nvidia’s issuance on Monday.
For Nvidia, the raise also keeps share dilution off the table, giving it greater flexibility as capital commitments mount. The firm has invested $5 billion (€4.3bn) in Intel, pledged up to $10 billion (€8.6bn) to Anthropic and contributed $30 billion (€25.8bn) to OpenAI’s latest funding round.
Nvidia shares closed up 3.5% at $212.45 after the deal, valuing the company at about $5.14 trillion (€4.42tn).
On the other hand, Alphabet, Google’s parent company, opted for equity instead, pricing an upsized $84.75 billion (€73bn) capital raise earlier this month, after originally seeking around $80 billion (€68.9bn), according to a company filing.
The transaction, which includes a $10 billion (€8.6bn) private placement from Berkshire Hathaway, ranks as the largest equity capital raise on record and is intended to fund the group’s AI compute expansion.
Management has guided 2026 capital expenditure to between $180 billion (€155.1bn) and $190 billion (€163.7bn).
However, the equity move came on top of an already heavy borrowing run. According to its own filing, Alphabet raised more than $85 billion (€73.2bn) of debt across six major currencies and markets in the first quarter of 2026, taking its total debt balance above $100 billion (€86.1bn).
That included a US dollar bond round early in the year, leaving Google relying on both debt and equity financing to bankroll its AI ambitions.
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The central bank on Thursday raised its economic growth forecast for South Korea to 2.6 percent for 2026 amid solid semiconductor exports. This file photo shows containers stacked at a port in Pyeongtaek on May 8. Photo by Yonhap
The central bank on Thursday raised its economic growth forecast for South Korea to 2.6 percent for 2026 amid solid exports driven by a semiconductor super cycle.
The revision by the Bank of Korea (BOK) represents a 0.6 percentage-point increase from its previous forecast of 2 percent issued in February.
It is the largest upside revision since May 2021, when the BOK raised its growth projection by 1 percentage point from 3 percent to 4 percent.
For 2027, the central bank estimated its growth outlook at 2.1 percent.
The South Korean economy grew 1.7 percent in the first quarter, marking the sharpest quarterly growth in 5 1/2 years.
The revised outlook broadly aligned with forecasts from other institutions.
The International Monetary Fund (IMF) projected growth of 1.9 percent this year, while the Asian Development Bank (ADB) projected 1.9 percent growth.
The Korea Development Institute (KDI) earlier improved its growth forecast to 2.5 percent for 2026 from 1.9 percent.
The BOK also revised up its inflation prediction to 2.7 percent from 2.2 percent, citing higher international oil prices in the aftermath of the U.S.-Iran war.
For 2027, consumer prices are estimated to rise 2.3 percent, according to the BOK.
“The Korean economy is projected to expand by 2.6 percent this year, well above the February forecast of 2 percent, driven by robust semiconductor exports, while government measures, including the supplementary budget, partially offset the Middle East-driven supply shock,” the BOK said in a release.
BOK Gov. Shin Hyun-song said in a press conference that strong exports will likely contribute 0.7 percentage point to the country’s growth this year, alongside the 0.2 percentage point gains generated by the government’s fiscal support and the 0.1 percentage-point increase brought on by the local stock market rally. On the other hand, the ongoing U.S.-Iran war will drag down the economy by 0.4 percentage point, he added.
“Based on our analysis, we concluded that if the situation in the Middle East is resolved early, this year’s growth rate could exceed 2.6 percent,” he said. “We do not think the growth is a short-lived trend.”
The central bank presented an optimistic scenario in which semiconductor-driven exports gain further momentum, raising its growth forecast by 0.5 percentage point for 2026 and 0.3 percentage point for 2027.
Under a pessimistic scenario, however, a possible slowdown in artificial intelligence investments would lower economic growth by 0.3 percentage point this year and 0.2 percentage point next year, the central bank said.
In line with the upbeat outlook, the BOK kept the key interest rate unchanged at 2.5 percent but signaled a possible rate hike in the second half.
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The EU’s new car market maintained steady growth through the first four months of 2026, with nearly 3.8 million vehicles registered, up 4.2% from the same period in 2025. This is according to data published on Wednesday by the European Automobile Manufacturers’ Association (ACEA).
The figures show a market increasingly dominated by electric and hybrid vehicles, helped by government incentives in major economies and growing competition from Chinese carmakers.
According to ACEA, between January and April 2026, battery-electric cars accounted for 19.7% of the EU market, up from 15.3% a year earlier. Growth was mainly driven by the bloc’s four largest markets, with Italy (+25.5%), Spain (+19.7%), Germany (+6.6%) and France (+2.3%) all recording gains.
In April alone, sales of battery electric vehicles were up by 37.7% in the EU from the same month last year, lifting their market share to 20.6% for the month.
Hybrid-electric vehicles remained the most popular single powertrain choice in April, up 12%, accounting for roughly 36.9% of the month’s sales.
Plug-in hybrids added 16.4%, capturing roughly a 9.8% share in April registrations.
On the other side of the ledger, petrol car registrations fell 16.3% to fewer than 218,500 units, while diesel dropped 17.1% to around 74,000.
Together, petrol and diesel cars accounted for less than 30% of vehicles sold across the EU in April.
Volkswagen Group retained its position as the bloc’s largest carmaker in the first four months of 2026, accounting for 26.7% of all new registrations, with just over one million units sold, up 2.9% year-on-year.
However, performance varied across the group. Skoda registrations rose 15.5%, and Audi gained 8.6%, while the core Volkswagen brand slipped 3.2%, losing ground across multiple segments.
Stellantis ranked second with a 17.1% market share and over 648,000 units, up a robust 7.8%, driven by a recovery at Fiat of over 32%, and strong gains at Opel and Vauxhall, which together rose 22% in registrations.
Renault Group was the weakest performer in the top three, declining 7.4% to around 384,250 units and accounting for a 10.1% market share, with Dacia registering a particularly sharp fall of more than 15%.
BMW Group and Mercedes-Benz posted gains of 3.9% and 3.8%, respectively, while Toyota and Hyundai Group both recorded modest declines of between 2.5% and 3.1%.
The most significant trend in April’s data was the continued rise of Chinese carmakers.
According to ACEA figures, BYD’s EU registrations more than doubled year-on-year in the first four months of 2026, surging 152.9% to more than 71,850 units.
Chery Automobile, through its Omoda, Jaecoo and Jetour brands, grew 267.1% to more than 48,350 units, while Leapmotor, distributing through its joint venture with Stellantis, soared 558.8% to over 28,700 units.
SAIC Motor, owner of the MG brand and the largest Chinese group by EU volume, added a further 10.4% to reach more than 77,000 units.
Combined, Chinese brands accounted for around 6% of EU car registrations between January and April 2026, compared with 3.2% in the same period a year earlier. Across the wider European market, including the UK and EFTA countries, Chinese brands accounted for a combined market share of roughly 7.3% over the same period, up from 3.7% a year earlier.
California’s population will grow more slowly in the next few decades than it has in the past — and that is good for the state’s still-struggling economy, according to a new USC report.
The study projects that the state’s population, now 37.3 million, will continue to increase at a healthy clip — about 1% annually — for years to come. But at least through 2050, we are unlikely to see the boom rates of recent decades, especially the 1980s.
“This is more manageable growth and that’s good news for California,” said Dowell Myers, a USC demography and urban planning professor who co-wrote the report with colleague John Pitkin. “We’re returning to a more normal rate of growth.”
The cooling pace means the state, city and county governments and other entities will have more time to prepare for a bigger population than they did in years past, allowing for more effective planning, Myers and other experts said. That could ensure that new roads and parks, for example, are put in areas where they are most needed and where growth is likely to be sustained, they said.
The researchers said the slowdown will mainly stem from a sharp drop in immigration to California, part of a nationwide trend detailed in other recent studies.
Although the slower pace of growth may be a net positive for California, it will require revisions to an array of public and private plans, including for schools, water projects, transportation, hospitals, highways and other infrastructure.
“Those of us who’ve been here for a while think of California as a place that’s grow, grow, grow — and go, go, go — but this shows that we’re not that anymore,” Hans Johnson, a demographer with the Public Policy Institute of California, said of the USC study released Tuesday. “We’re now more typical of the rest of the nation.”
Johnson noted that the brakes on California’s growth were evident in the 2010 census, after which, for the first time, the state failed to gain a new seat in Congress.
The report, the third in a series of projections by USC’s Population Dynamics Research Group, predicts that California’s population will grow at less than 10% per decade for the next several decades.
In the 1980s, the state’s population surged nearly 26%, adding about 6 million residents. The increases were fueled primarily by the booming aerospace industry and economic problems elsewhere in the country, which made the Golden State a powerful magnet for job seekers.
In the 1990s, the state’s growth rate fell to 14% but remained strong. It slowed further, to 10%, in the decade just ended, the USC report shows. Myers said the continuing falloff from 2000 to 2010 may have been partly due to the recession that began in 2008. Growth was slow even in 2005, when the economy was still strong.
The new predictions differ significantly from California’s official population projections. Those show that the state’s population by 2020 would reach 44 million, a level USC’s researchers now say will not be attained until 2028.
Bill Schooling, chief of demographics research for the state department of finance, praised the USC report and said his staff, too, is working on a new set of population figures, which he says will be lower than its previous estimates. Schooling’s office is racing to produce the new estimates ahead of its regularly scheduled report because demographic changes are so profound that state agencies urgently need fresh data to update their planning.
The USC analysis also predicts that as California’s growth slows, its population will change in various ways. The state in coming decades is expected to have more senior citizens, fewer children and more young adults. The state’s immigrant population will be more settled, with a larger share that has lived in the U.S. at least 20 years.
Each change has implications, the experts said.
The average age of the state’s population, as in the nation, is rising, partly driven by the aging of the huge baby boom generation, whose oldest members were born in 1946 and are of retirement age. The USC researchers say the number of Californians of retirement age compared with people of prime working age (25- to 64-year-olds) will rise to 36 seniors per 100 working-age adults in 2030. It stood at 22 to 100 in 2010.
As the boomers age, they will require more state services and that will create budget challenges, Johnson noted. Also significant is the loss of their workforce skills to the state, he said. Baby boomers are California’s most highly educated generation, he said, with a greater share having graduated from college than younger or older age groups.
A smaller population of children in years to come means savings for the state, mainly in education costs. It could lead to higher per capita spending for the education of those who remain, Johnson said.
The rising share of young adults age 25 to 34 in the next 20 years is good news for the state, which experienced negative growth for that age group from 1990 to 2010, Myers said. Young adults are crucial for the state’s economic growth. They are most likely to become new workers, rent their first apartment, buy a home, have children and be first-time voters, he said.
California’s increasingly settled immigrant population means that its members are more likely than before to have learned English, have children born in the U.S. and remain in the state, Johnson said.
“It’s important for us as a state to make sure immigrants and their families are integrated into our society and are successful, so it’s really important to look to their education,” he said. “The biggest challenge California faces long term is to ensure that enough of our residents go to college, and to make sure they graduate.”
The European Commission on Thursday cut its 2026 growth forecast for the European economy, as the ongoing conflict in the Middle East drives energy prices sharply higher.
The EU economy is now expected to grow by just 1.1% in 2026, down from the 1.4% projected in the Commission’s autumn forecast. The eurozone outlook was revised down further to 0.9%.
In its report, the Commission warned that disruption to global energy markets — caused by escalating tensions around the Strait of Hormuz, one of the world’s key oil and gas shipping routes — has significantly worsened Europe’s economic outlook.
“Before the end of February 2026, the EU economy was expected to continue expanding at a moderate pace, alongside a further decline in inflation,” the report said. “However, the outlook has changed substantially since the outbreak of the conflict.”
Inflation is also expected to rise sharply due to the disruption around Hormuz.
EU inflation is forecast to reach 3.1% this year — a full percentage point higher than previously expected — driven mainly by soaring energy costs after oil and gas prices surged amid fears of supply disruptions in the Gulf.
For EU officials, the shock recalls 2022, when Russia’s invasion of Ukraine triggered Europe’s worst energy crisis in decades.
The Commission described the latest turmoil as “the second such shock in less than five years”, warning that Europe’s dependence on imported fossil fuels leaves it highly vulnerable whenever geopolitical tensions threaten global energy supplies.
Consumer confidence has already fallen to a 40-month low, according to the forecast, as households prepare for higher heating and fuel bills while businesses face rising operating costs and weaker demand.
Investment is also expected to slow as companies confront tighter financing conditions and growing uncertainty. Export growth is weakening as global demand softens.
Despite the deteriorating outlook, Brussels said the bloc is better prepared than during the Ukraine-related energy crisis, thanks to years of investment in renewable energy, lower gas consumption and efforts to diversify away from Russian supplies.
“The push towards supply diversification, decarbonisation and lower energy consumption has left the EU economy better placed to absorb today’s shock,” the Commission said.
However, EU officials acknowledged that risks remain heavily skewed to the downside.
The report warned that prolonged disruption in the Strait of Hormuz or across wider Middle Eastern supply chains could drive energy prices even higher, derail the expected easing of inflation in 2027 and potentially stall Europe’s recovery altogether.
The Commission also cautioned that shortages of refined oil products, fertilisers and other industrial inputs could spread through global supply chains, increasing food and manufacturing costs across Europe.
Meanwhile, European governments are preparing for growing fiscal pressure. Public deficits across the EU are expected to widen as governments increase spending to protect households from rising energy bills while also boosting defence expenditure amid mounting geopolitical instability.
Italian Prime Minister Giorgia Meloni has recently urged the European Commission to relax fiscal rules for households and industries struggling with soaring energy costs, arguing that energy security should be treated with the same urgency as defence spending.
At the centre of Rome’s request is the EU’s national escape clause, adopted on 8 July, which allows member states temporary fiscal flexibility to increase defence spending under exceptional circumstances.
Meloni said Brussels had already shown a willingness to loosen budget rules in response to Russia’s war in Ukraine and growing concerns about Europe’s military preparedness. Italy is now seeking similar flexibility for emergency energy measures.
An ambitious data center project stalls due to insufficient electrical capacity.
Kenya is positioning itself as Africa’s Silicon Savannah and its premier tech hub. Touting itself as a “full-package investment destination,” part of the strategy has been encouraging global tech giants to set up operations in the country.
Lately, however, the plan has run into a roadblock: electrical capacity.
Pull back to May 2024, when Microsoft Corp., in partnership with G42, an Emirati-based AI developer, unveiled plans to invest $1 billion in a data center in Kenya powered by geothermal energy.
Described as the single largest and broadest digital investment in the country’s history, the center would be the heartbeat of a digitally led economy in Kenya and the wider East Africa region, anchored in AI and cloud-computing services.
Two years later, the project has been abandoned on account of too little electricity to power the center.
According to G42, the facility was supposed to be located some 100 kilometers northwest of Nairobi, the epicenter of geothermal energy production. Initially, it would have required 100 megawatts of electricity to run, but when fully operational, 1 gigawatt.
For a country whose installed electricity capacity stands at only 3,840 MW (3.8 GW), and where national connectivity is approximately 76%, the realization was astounding.
“To switch on that one data center, we would need to shut off power for half the country,” said President William Ruto at a recent state event. “That’s when I knew there was a problem.” Kenya continues to lose high-value investments due to low electricity capacity, he conceded; to attract and secure investment, it needs at least 10 GW.
That leaves Kenya with no ongoing power generation projects or plans for more in the future.
The stalling of the data center is bad news for Microsoft. The tech giant saw East Africa as a ripe market for its Azure products and other cloud and AI-powered solutions for businesses and the public sector. A key focus was to help governments digitize operations and service delivery, starting with Kenya, which has indicated plans to move more of its services to the cloud. Another goal was to help startups, entrepreneurs, and organizations build a digital ecosystem offering critical solutions to key sectors of the economy.
Indonesian President Prabowo Subianto unveiled ambitious economic growth and fiscal deficit targets for 2027 while promising reforms aimed at restoring investor confidence and strengthening state institutions. The announcement comes after months of market concerns over government spending plans, policy uncertainty, and weakening confidence in Southeast Asia’s largest economy.
Prabowo outlined a growth target of 5.8 percent to 6.5 percent for next year while aiming to lower the fiscal deficit to between 1.8 percent and 2.4 percent of gross domestic product. The government also expects inflation to remain under control and pledged to improve food security and attract greater investment.
Indonesia has faced growing scrutiny from investors and rating agencies this year. Credit rating outlooks were downgraded due to concerns about policymaking credibility, fiscal discipline, and transparency. Market fears intensified after discussions around possible changes to the country’s long standing fiscal deficit ceiling and rising state spending commitments.
Prabowo confirmed plans to establish a new state agency to oversee exports of major commodities including coal, palm oil, and nickel. The government says the move is intended to reduce revenue losses and strengthen national control over natural resources, but investors worry it could disrupt pricing systems and reduce private sector profitability.
Despite increasing state involvement in strategic sectors, Prabowo stressed that Indonesia still welcomes private companies and small businesses as partners in economic development. He called for cooperation between the government and the private sector to achieve long term prosperity.
Indonesia’s latest economic strategy reflects a balancing act between ambitious state led development goals and the need to maintain investor confidence. While the government aims to accelerate growth and strengthen control over key resources, markets remain cautious about rising fiscal risks and unpredictable policy changes.
The proposed commodity export agency could significantly reshape Indonesia’s role in global resource markets because the country is one of the world’s largest exporters of coal and palm oil. However, stronger government intervention may create uncertainty for foreign investors and commodity traders.
At the same time, maintaining fiscal discipline will be critical as Prabowo moves forward with large welfare programmes and economic reforms. The success of his agenda will likely depend on whether the government can reassure markets while delivering growth, stability, and stronger institutional credibility.
With information from Reuters.
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