TGIF Monthly Wrap: June 2025
- ICMSS
- Jun 27
- 2 min read
Updated: Jun 29
Telkom–IBM Launch Sovereign AI Plan, US–China Pause Tariffs, Danantara and INA Funds US$800M to Chandra Asri Plant, US Markets Up on Israel–Iran Truce.
By Fayza Nawra Avanitanya, Muthia Noor Safitri, Kenzie Aryasatya, Imam Fakhri Prayogo Harianto
June 27, 2025 at 16:30 GMT+7
Cooperation Agreement between Telkom and IBM for the Provision of Sovereign AI Solutions at Telkom Landmark Tower, Jakarta, Wednesday (21/5). | Source: Arsip Telkom
PT Telkom Indonesia and IBM have entered a strategic partnership to develop and implement AI tailored to Indonesia’s regulatory and sectoral needs. The partnership leverages Telkom’s strong digital infrastructure and customer base, along with AI capabilities through IBM’s Watson AI platform, which launched on June 4, 2025. The partnership aims to drive digital advancement across Indonesia’s public and private sectors, including finance, healthcare, and legal services.
It emphasizes ethical AI principles by addressing bias, explainability, compliance, and oversight challenges. The partnership also supports workforce development and aligns with the country’s broader ambition to strengthen innovation, productivity, and digital sovereignty.
Chinese Vice Premier He Lifeng (right) shakes hands with US Treasury Secretary Scott Bessent before their meeting to discuss China–US trade | Source: AP
The US and China have tentatively agreed to pause new tariffs, maintaining trade and economic dialogue during the recent talks between US Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng in London. Both sides called the talks constructive and stressed the importance of ongoing communication to avoid escalation. However, the outcome lacks binding commitments, timelines, or measurable goals.
Existing tariffs remain, and key disputes over industrial policy, intellectual property, and technology exports persist. The agreement is seen as largely symbolic, aiming to stabilize relations without signaling major policy shifts or lasting change.
Danantara and the Indonesia Investment Authority (INA) signed a Memorandum of Understanding with PT Chandra Asri Pacific Tbk Ilustration | Source: IDN Financials
Danantara and INA have agreed to explore the development of a US$800 million Chlor-Alkali and Ethylene Dichloride (CA-EDC) plant in collaboration with Chandra Asri. The initiative aims to lower Indonesia’s dependence on imported caustic soda and EDC. As part of a National Strategic Project, it has the potential to save up to Rp 4.9 trillion annually and generate Rp 5 trillion in export revenue.
The plant will be constructed in two stages, starting with core production, followed by downstream expansion. This project will enhance Indonesia’s position in global markets and support sustainable economic growth.
Source: Getty Images
US Markets React Favorably Following Israel–Iran Truce
US stock markets were lifted by easing geopolitical tensions, signaling confident investor sentiment towards the ceasefire between Israel and Iran. Tech and consumer sectors led the gains, with major indexes rising over 1% and the Nasdaq 100 hitting record highs. Brent and WTI declined about 6%, reaching 2 weeks lows on reduced supply risk, leading to energy prices falling sharply.
The decline in oil and energy prices further pushes stock prices up. Together, improved geopolitical stability, lower energy costs, and broad-based stock advances caused a positive impact across US markets, reflecting renewed investor confidence and a shift toward risk-on sentiment.
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