Putin hosts Indonesia's Prabowo in Russia in bid to deepen ties

ST PETERSBURG, Russia - Indonesian President Prabowo Subianto held talks with President Vladimir Putin in the northern Russian city of St Petersburg on Thursday as they explore ways to deepen what some officials have called a burgeoning strategic partnership.
The deepening of ties between Russia and Indonesia, part of Moscow's bid to forge new relations with the Global South amid Western attempts to isolate it over the Ukraine war, has perturbed some powers such as Australia.
Meeting in the Constantine Palace, Putin noted Indonesia's entry into BRICS as a full member and said he was sure it would make a significant contribution to the grouping, which he said was gaining clout in the world.
Prabowo thanked Putin for his support over Indonesia's entry to BRICS and said that ties between the two countries were improving.
Russia and Indonesia's foreign ministers, Sergei Lavrov and Sugiono, speaking in Moscow earlier this week, mentioned a possible strategic partnership between the two countries.
Russia has proposed deepening military, security, trade and nuclear ties with Indonesia, which has the world's fourth largest population.
Prabowo previously visited Russia in August 2024, when he was defence minister and president-elect, and described Moscow as a "great friend", saying he hoped for stronger cooperation on defence, energy and education.
Indonesia has said that it wants to build its first nuclear power plant by 2032, with 500 MW capacity, aiming for it to come online in the next decade. Authorities said interested developers included Russia's Rosatom, China CNNC, and U.S. small modular reactor producer NuScale.
Indonesia, Southeast Asia's biggest economy, currently relies mostly on coal as a source of power despite boasting massive potential for renewable energy sources such as hydro, solar and geothermal.
With expectations of high energy demand in the future, Indonesia is seeking to boost power generation capacity while capping its carbon emissions, eyeing nuclear power as the solution.
Prabowo has maintained Indonesia's non-aligned foreign policy, vowing to befriend any country, including Russia and the United States. He has said Indonesia will not be joining any military bloc.
China is Indonesia's largest trading partner, but recently Prabowo's government announced a raft of concessions for trade with the U.S. as it looks to neutralise the effect of tariffs.
Russia has praised what it says is Indonesia's balanced position on the Ukraine war. Russia and Indonesia conducted their first joint naval exercises in the Java Sea last November. REUTERS
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AsiaOne

27 minutes ago

• AsiaOne

How Trump, a self-proclaimed 'peacemaker', embraced Israel's campaign against Iran, World News

WASHINGTON — Roughly one month ago, from the stage at an investment forum in Saudi Arabia, US President Donald Trump issued a warning to Iran that would prove prophetic. "We'll never allow America and its allies to be threatened with terrorism or nuclear attack," Trump told the crowd, sending a message to the leadership in Tehran. "The time is right now for them to choose. Right now. We don't have a lot of time to wait. Things are happening at a very fast pace." That May 13 ultimatum received little attention at the time. But behind the scenes, the president already knew an attack on Iran could be imminent — and that there might be little he could do to stop it, according to two US officials. By mid-May, the Pentagon had begun drawing up detailed contingency plans to aid Israel if it followed through on its long-held ambition to strike Iran's nuclear programme, the officials said. And the US had already diverted thousands of defencive weapons away from war-torn Ukraine toward the Middle East in preparation for potential conflict, according to a Western source familiar with the matter and a Ukrainian source. The Pentagon declined to comment for this story. This account of the weeks and days leading up to Trump's decision to throw his support behind Israel's bombing campaign is based on interviews with over a dozen administration officials, foreign diplomats and Trump confidantes, most of whom spoke on condition of anonymity to discuss private deliberations. The picture that emerges is that of a long, secretive preparation process and a president who for weeks found himself torn between diplomacy and supporting military action — and was ultimately persuaded in part by an ally whose actions he did not fully control. While Trump has long described himself as a peacemaker — dispatching Middle East envoy Steve Witkoff to the region several times to try to seal a diplomatic accord — he had several trusted political allies pushing him to back an Israeli attack on Iran's nuclear facilities. [[nid:719255]] And US intelligence had indicated a unilateral Israeli strike was possible, even likely, even if Trump wanted to wait, according to two US officials. While it is unclear if Israeli Prime Minister Benjamin Netanyahu or Trump's more hawkish allies ever got him to a "yes" to Israel's plans, by the days leading up the strike he was at least not a "no," according to two senior US officials and a senior Israeli source. That stance, people familiar with the dynamics said, helped tip Israel into action. Seven days into the Israel-Iran conflict, Trump is left with a dilemma, said Aaron David Miller, a veteran diplomat who has advised six secretaries of state on Middle East policy. He can try again to pursue a diplomatic resolution with Iran, allow Iran and Israel "to fight it out," or he can enter the war with US airstrikes on the deeply buried Fordow enrichment plant, a step that would have unknown consequences for the region. Trump "let it (the Israeli attack) happen," said Miller, a senior fellow at the Carnegie Endowment for International Peace policy institute. "He got on the tiger and he's riding it." The White House on Thursday said that Trump will make a decision on whether the US will get involved in the conflict in the next two weeks. The White House, the Israeli prime minister's office and Iran's delegation to the United Nations did not respond to a request for comment. Tehran has consistently said its nuclear programme is designed for peaceful purposes only, a conclusion Washington has rejected. The coming storm One of the first hints that Trump might sign off on an Israeli bombing campaign came in April. [[nid:719299]] During a closed-door meeting on April 17, Saudi Arabia's defence minister delivered a blunt message to Iranian President Masoud Pezeshkian: Take Trump's offer to negotiate an agreement seriously because it presents a way to avoid the risk of war with Israel. Reuters could not determine whether the message was sent at Washington's behest, nor whether Iran's leaders took that message seriously. With hindsight, they should have. The Israel Defence Forces and the head of US Central Command, General Michael "Erik" Kurilla, were discussing detailed intelligence about Iran's missile buildup and nuclear programme and steps that could be required to defend US troops and Israel itself in any conflict with Iran, according to a US official and senior Israeli official. Meanwhile, the US was funnelling weapons to Israel that would be useful for an air war with Iran. In one instance in early May, a large shipment of defencive missiles originally meant for Ukraine was diverted to Israel instead, according to the Western source and the Ukrainian source. The diverted shipment caused consternation in Kyiv and sparked continued fears that additional weapons needed to defend against Moscow will instead be used to defend US interests elsewhere, the Ukrainian source said. In the opening months of Trump's term, Israel had already proposed to Washington a series of options to attack Iran's facilities, according to sources. While Trump had rebuffed those ideas, saying he preferred diplomacy for the time being, several people close to him said he was never dead-set against using military force against Iran. [[nid:719288]] He had done so before. In 2020, despite a foreign policy during his first term that was otherwise marked by restraint, Trump ordered a drone strike that killed major general Qassem Soleimani, the head of the Iranian Revolutionary Guards' division responsible for its international operations. The Iranian government has since sought to murder Trump in revenge, US prosecutors have said, an allegation Tehran denies. Behind the scenes, Trump had been pulled in multiple directions on the Iran issue since before he even took office. On one side, many supporters - including conservative media personality Tucker Carlson - and administration officials saw Trump's Make America Great Again movement as an antidote to decades of foreign wars that cost thousands of American lives without significantly advancing American interests. On the other, several close Trump allies - from conservative commentator Mark Levin to Republican Senator Lindsey Graham - were portraying a nuclear Iran as an existential threat that must be removed at any cost. Trump himself took pride in being a broker of peace. "My proudest legacy," he said during his inauguration address, "will be that of a peacemaker and unifier." "It's a tango" Ultimately, no US official, Trump confidante or diplomat Reuters talked to identified an epiphany that tipped the scales for the president. One senior administration official said that after months of sitting on the fence a lack of diplomatic progress, a push from the Israelis and appeals by hawkish allies likely wore him down. Trump aides and allies have noted that Israel's attack unfolded just after the expiry of a 60-day deadline the Trump administration had set for a diplomatic breakthrough with Iran. The senior US official said another dynamic was at play: As US intelligence consistently showed Israel might go ahead with an attack with or without US support, the administration could look caught off guard if they did not get behind it. Worse, it could appear that the US was opposing a longtime ally. Although Trump had appeared to some to snub Netanyahu as he pushed for a peaceful solution to the crisis, privately, Israel understood that Washington would stand by it, said a separate official. By the time Trump talked to Netanyahu on Monday, June 9 — one of many phone calls in recent days — his stance was one of tacit, if not explicit approval, according to one US and one Israeli official. The Wall Street Journal reported that Trump had said he would like more time to see diplomacy play out. But the US official said that he did not explicitly veto Israel's plans. By Wednesday, June 11, it was clear to Washington that Israel's plans were a go. That day, Reuters reported that the US was preparing a partial evacuation of its Iraqi embassy amid fears of reprisals from Iran following an imminent attack. The next day, June 12, Washington sent a formal diplomatic note to several regional allies, warning them that an attack was imminent. That evening, Israel launched its overnight barrage, an attack that almost immediately escalated into an air war. Trump and some key cabinet members watched the events live from the wood-paneled "JFK room," part of the White House Situation Room. Other officials watched the events nearby. On the menu, per one official: stone crabs from a local restaurant. The initial attack appeared to be a success, with several close advisers to Iranian Supreme Leader Ali Khamenei killed and key nuclear sites seriously damaged. Over the weekend, the Israelis considered killing Khamenei himself, but were waved off by Trump, according to two US officials. Almost immediately, a political civil war erupted in Trump's Republican Party, with several high-profile conservatives, including members of Congress, accusing his administration of fanning the flames of war. Seven days on, the US intelligence community believes the strikes have set Iran's nuclear ambitions back by only months, according to a source familiar with US intelligence reports, confirming a CNN report. A significant blow to Iran's nuclear ambitions, most analysts say, will require dropping bunker-busting bombs on the Fordow Fuel Enrichment Plant, the crown jewel of Iran's nuclear programme. Only the US has that capability. Trump has said he is considering such a strike, which would represent a major escalation for the United States. As of Thursday, his intentions were still unclear. [[nid:719286]]

Business Times

27 minutes ago

• Business Times

Singapore's banking hub has a busy corner where cash is still king

[SINGAPORE] In the heart of Singapore, a financial hub where billions of dollars zip around the world over computer screens in nanoseconds, there's a crowded building where cash still reigns. Six days a week, hundreds of people line up in a rundown mall abutting Raffles Place square to buy and sell hard currency at one of around 30 money changer stalls. All manner of notes can be had in minutes: Singapore dollars for British pounds? Coming right up. Indonesian rupiah for Vietnamese dong? Icelandic krona? Maldivian rufiyaa? No problem. Some 150 currencies are available. 'Cash will remain forever,' said Abdul Haleem, 65, a veteran of the industry whose kiosk sits at the entrance to the narrow, three-storey plaza called The Arcade. The towering offices of global banking giants JPMorgan Chase & Co and Bank of China are just steps away. The number of licensed money changers in Singapore dropped during the Covid-19 pandemic when many people were unable to travel and retail shops struggled to pay rent. But there are close to 250 physical stalls still operating, and new ones continue to spring up across the city-state. That's even though multi-currency payment apps such as YouTrip, Wise and Revolut have grown in popularity. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up To understand how so many cash dealers can survive the digital age, you need to know a bit about Singapore's place in the world. While it's now among the richest countries – where financial titans from UBS Group to BlackRock manage more than US$4 trillion, and billionaires including James Dyson, Ray Dalio and Sergey Brin have set up family offices – Singapore remains a shipping and transit hub at its core. Hundreds of vessels anchor in Singapore's harbour each day, many waiting to load and unload cargo at one of the world's busiest maritime ports. For decades, that's made Raffles Place a prime location for money changers, just a few blocks from where the Singapore River empties into the Singapore Strait. Many sailors need to swap cash from their previous locations, and change money for their next destination. 'They get off the boat and come right here,' said Haleem, whose uncle Abdul Gaffoor, now 99, started City Money Changers on the Arcade's ground floor in 1980. Old-world relic Many office workers also come in search of the best exchange rates, which are often better than what banks offer. It's an old-world relic resisting the bits and bytes revolution. Mobile phones and tablets have replaced newspapers, while emails and social media have supplanted faxes and letters. Now digital payments are coming for the ancient culture of coins and paper notes. Mohamed Rafik, 55, a partner at Arcade Money Changers, a stall opposite Haleem's, remains optimistic. His evidence is that there are new licensees entering the industry who wouldn't do it if they couldn't make a living. 'Money changers won't go out of business,' said Rafik, while handling cash and paper receipts on a busy afternoon. Digital payment wallets may seem attractive now, but the companies also have overheads and may try to increase rates in the long run, he predicted. Right now, a thriving tourism industry is driving demand during the summer school holidays. Singapore is close to regional holiday hotspots like Phuket, Bali and Vietnam's Ha Long Bay, where cash is still needed to pay for food at street stalls or small restaurants, or to offer tips. Travellers with cash also avoid the higher exchange rates and foreign transaction fees imposed by many credit cards. Life lesson For Christina Ng, a teacher in her 40s who came to Haleem's stall for South Korean won, cash gives a sense of security while traveling. Paying with notes and coins is also a lesson for her three children. 'I want them to learn how to use the cash and do the transaction, so they need to see the physical money,' she said. 'We don't want them to just tap, tap, tap without actually knowing what they're spending on.' The money changers are good leading indicators of travel trends. Whereas demand used to be strongest for US dollars and Malaysian ringgit, the Japanese yen is now most sought-after, along with Korean won and Taiwanese dollars, Haleem said. A record number of tourists have flocked to Japan to visit historic sites, dine on sushi and take advantage of the weakened currency. At the Arcade, the money changers carve out an existence on the fringes of the multi-trillion dollar global foreign-exchange market. Customers throng the narrow passages to scrutinise buy and sell rates at tightly packed stalls, which are required to post rates on electronic screens. Frugality gives them an edge against the financial institutions that occupy the opulent towers surrounding Raffles Place, according to Rafik at Arcade Money Changers. The changers will survive even if digital platforms cut their margins to zero to gain market share, he said. Congregating in one location attracts more customers, but it also pares margins to the bone. Foreign currency bought at a commercial bank can cost 1 per cent to 4 per cent or more once you factor in a poorer exchange rate and transaction fees. At City Money Changers, it's a high-volume, low-margin business where Haleem typically makes fractions of a penny on the dollar in a swap. 'Everybody wants to see the best price so they will shop around,' he said, while taking a break from his tiny kiosk. On Thursday (Jun 19) afternoon, Haleem's stall was selling the greenback at S$1.2900, versus the S$1.2972 offered by Singapore's largest bank DBS on its retail app. The cash exchange rate wasn't as favourable as YouTrip's rate of S$1.2877 per US dollar. With all this cash on hand -– some changers can turn over as much as S$500,000 a day, he says – you would expect to see armed guards all over the plaza. Instead, the stallholders rely on security cameras – there are some 90,000 across the city – to monitor activity. The dealers are the eyes and ears for each other, on the alert for any suspicious customers. Regulators have scrutinised the industry in the past, concerned about the potential for money laundering. In 2016, the Monetary Authority of Singapore (MAS) cited a Raffles Place currency changer, along with other banks, for their roles in the scandal at 1MDB, the Malaysian sovereign wealth fund. The probe revealed inadequate risk management practices at the changer, and failure to identify the beneficial owners of funds. Money changers are now required to conduct customer due diligence measures for cash transactions exceeding S$5,000, or for those topping S$20,000 where the money is funded from an identifiable source like a bank account. That includes verifying customers' identities and keeping proper transaction records. The industry poses a 'moderate level' of money laundering threats due to its cash-intensive nature, said a spokesperson for the MAS, the country's financial regulator. Haleem, who's been at this trade for 40 years, concedes that the future isn't all bright for his industry. Business is about half that of pre-Covid levels, and the increased competition is eroding margins, while wild currency swings can leave him sitting on devalued cash overnight. He predicts the trend toward digital payments is only going to accelerate. 'It will become worse and worse,' he said, though he thinks there will always be a little room in people's wallets for cold hard cash. One floor up at Crown Exchange, Thamim A K, a money changer in his 60s, is more sanguine. Sitting in a backroom surrounded by wads of South Korean won and Indonesian rupiah, he says his 40 years of trading, with all its ups and downs, gives him hope for the future. 'I've seen everything, all the currencies, fluctuations,' he said. 'The bank notes business is still there. It's growing, in fact. It's fighting with digital.' BLOOMBERG

AsiaOne

42 minutes ago

• AsiaOne

Zelenskiy appoints new commander of Ukraine's land forces, World News

President Volodymyr Zelenskiy on Thursday (June 19) appointed Hennadiy Shapovalov as commander of Ukraine's land forces, replacing a commander who resigned over a Russian strike on a training area. Shapovalov, whose appointment was announced in a presidential decree, had previously acted as a liaison at a Nato coordination centre in Germany. Before that, he had served as commander of the forces of the Operational Command South. Zelenskiy, speaking later in his nightly video address, said Shapovalov's experience in working with Nato would be put to good use in introducing changes in Ukraine's forces. "All this useful experience of this coordination and all the real combat experience of our soldiers must be applied now within Ukraine's land forces," he said. "Changes are needed and this is an imperative." Shapovalov takes over as head of land forces from Mykhailo Drapatyi, who tendered his resignation this month after a deadly Russian strike on a training camp in southeastern Ukraine. Zelenskiy reassigned Drapatyi to the post of commander of the joint forces as part of a military shakeup. [[nid:719245]]