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A decade of Jokowi: Indonesia’s democracy icon leaves illiberal legacy, critics say

REUTERS

JAKARTA – In 2014, then presidential hopeful and outsider Joko Widodo attended packed campaigns with a white ribbon warning against election fraud tied around his head.

At the time Mr. Jokowi – as the president is known – symbolized democracy and change, embodying the hope of a better, cleaner Indonesia.

After two terms and a decade in power, he has left an indelible mark on the nation of 280 million, presiding over a period of strong economic growth and massive infrastructure development. But critics say his rule also has been marked by a rise in old-time patronage and dynastic politics, and the diminished integrity of courts and other state institutions.

Analysts say the trend may continue under President-elect Prabowo Subianto, a member of the old elite that ruled Indonesia before Mr. Jokowi and an ex-special forces commander who was dismissed from the military amid speculation of human rights abuses, assertions he has denied.

“Widodo has done a lot of damage to democratization in recent years,” said political analyst Kevin O’Rourke. “It’s hard to see how the recovery can come about.”

For a man once celebrated for his lack of ties to Indonesia’s powerful military and civilian oligarchs, Mr. Jokowi leaves office facing accusations he has tried to change laws to benefit his family, and co-opt state bodies to control his opponents.

Spokespeople for the president’s office did not respond to requests for comment. Mr. Jokowi said in July that democracy was thriving in the country, citing the holding of elections and freedom of speech.

Once a furniture manufacturer in the city of Surakarta, Mr. Jokowi rose from mayor to Jakarta governor before he was elected president in 2014, defeating Mr. Prabowo. He beat Mr. Prabowo again when he was re-elected in 2019 but then made him his defense minister.

When Mr. Jokowi steps down on Oct. 20, his legacy will importantly include leaving Indonesia in the hands of Mr. Prabowo, the former son-in-law of authoritarian ruler Mr. Suharto and the son of a former cabinet minister.

“He’s brought about the empowerment of Prabowo and that’s already jeopardizing Indonesia’s democratic institutions,” said Mr. O’Rourke.

TERM LIMITS

Mr. Prabowo has in the past advocated returning to an earlier version of the constitution where the president is not directly elected by the people.

Indonesia adopted term limits after Suharto’s three-decade rule, marred by corruption and nepotism, ended in 1998 amid the economic and political chaos triggered by the Asian economic crisis.

This March, Mr. Prabowo described democracy as tiring, costly and messy but he has not recently referred to reviving the old constitution.

Spokespeople for the president-elect did not respond to requests for comment.

It was with great promise that Jokowi came to power a decade ago, hailed at the time as a man capable of making real change.

And for the first term he did, said his former deputy chief of staff, Yanuar Nugroho.

“Jokowi’s first period is when he really delivered what he promised,” he said, including an improved national health insurance scheme, which now covers more than 90% of the population, and mammoth infrastructure development.

During the Mr. Jokowi years, Indonesia posted solid economic growth and low inflation and successfully courted foreign investors to develop its domestic mineral processing industry, notably in nickel, a key component in electric vehicle batteries.

A distinct shift came in Mr. Jokowi’s second term when he consolidated power and his aides began talking about a possible constitutional change to allow him a third term, and when that went nowhere, a term extension, according to many media reports.

Neither idea bore fruit, and Mr. Jokowi eventually urged government ministers to stop talking about him staying in office.

Another worrying sign, say academics and critics, is how the Jokowi administration has used institutions such as courts, the anti-corruption body and the attorney general’s office for political gain. The president’s office did not respond to a request for comment.

COURT RULING

The critics say the president’s supporters have deployed threats of corruption charges to keep opponents in line, including rival party figures and government critics. The sudden resignation of Golkar party chief Airlangga Hartarto in August and his replacement by a Jokowi loyalist was among the cases where legal threats were deployed for political gain, media reports said.

Airlangga declined comment. Mr. Jokowi’s office said his decision to resign had nothing to do with the president.

“What we’ve seen is the president growing confident because he’s learned that he can actually get away with it,” said Sana Jaffrey, a research fellow at the Australian National University (ANU).

The integrity of the judiciary came into sharp focus last October when the constitutional court – at the time headed by Mr. Jokowi’s brother-in-law – issued a ruling that allowed the president’s elder son, 37-year-old Gibran Rakabuming Raka, to successfully run for vice president by changing age requirements.

Protests erupted this August, after parliament proposed more election changes that would have allowed Jokowi’s younger son Kaesang to run in regional elections in November. Lawmakers then abandoned the plan.

“It’s as if he erased all the good things that he has done,” said his former staffer Mr. Yanuar, who joined the protests.

Still, Mr. Jokowi remains immensely popular. His approval rating fell to its lowest level this year, a poll by Indikator Politik Indonesia showed last week, with the outgoing leader retaining 75% support, higher than the average over his two terms in office.

Reflecting on his decade, ANU’s Jaffrey said Mr. Jokowi has taken Indonesia right to the edge, but not yet into “competitive authoritarianism”.

“In a system like that, all the structures of democracy exist… but none of them are meaningful”, she said.

That means Mr. Prabowo will inherit a country more powerful and less accountable than it has been since 1998, when its reform period began, she said.

Mr. O’Rourke, the analyst, said: “A return to Suharto-era political structures is likely. Prabowo has made clear that he will brook very little dissent.” — Reuters

Russia says more than 30,000 evacuated from areas bordering Ukraine

Army soldier figurines are displayed in front of the Ukrainian and Russian flag colors background in this illustration taken, Feb. 13, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

Some 30,415 people including nearly 8,000 children have been evacuated from areas bordering Ukraine due to shelling and attacks, Russia’s human rights commissioner said in remarks published on Monday.

Tatyana Moskalkova, the commissioner, told news outlet Argumenty I Fakty in an interview that the evacuees have been placed in nearly 1,000 temporary accommodation centers across Russia.

Ukraine, subjected to an invasion from Russia since February 2022, has retaliated with shelling and other attacks on Russia’s border regions, with the military saying the strikes target infrastructure key to Moscow’s war effort.

Ukrainian forces launched an incursion into the Kursk region in August, taking control of dozens of settlements and holding most positions since.

Ms. Moskalkova said she had received appeals regarding more than 1,000 Russian citizens from Kursk, whose whereabouts are unknown and who were said to have been taken by Ukrainian forces.

Reuters could not independently verify Ms. Moskalkova’s reports. There was no immediate comment from Kyiv.

Both sides deny targeting or imprisoning civilians but thousands have died in the war, the vast majority of them Ukrainians.

Moskalkova also told the news outlet that she has visited more than 2,000 Ukrainian prisoners of war in Russia and that similar visits with Russian prisoners have been conducted by her counterpart in Ukraine. — Reuters

Senior Taiwan security official says pressure on Taiwan from China is ‘not light’

CHESS PIECES are seen in front of displayed China and Taiwan’s flags in this illustration taken Jan. 25, 2022. — REUTERS

TAIPEI – A senior Taiwan security official said on Monday pressure on Taiwan from China is “not light”, after China began a new round of war games around the island.

Speaking at an international forum on Chinese politics being held in Taipei, National Security Council Secretary-General Joseph Wu said, “we need to stay alert at all times. We will stay moderate and responsible, maintain status quo across the Taiwan Strait.”

China, which views democratically governed Taiwan as its own territory, calls Taiwan President Lai Ching-te a “separatist”. Mr. Lai and his government reject Beijing’s sovereignty claims, saying only Taiwan’s people can decide their future.

“Leaders around the world talk more than ever about the need for peace and stability across Taiwan Strait,” Mr. Wu said. “Taiwan will continue to seek possibilities for talks with China.”

Last week at his keynote national day speech, Mr. Lai said the People’s Republic of China had no right to represent Taiwan, but that the island was willing to work with Beijing to combat challenges like climate change, striking both a firm and conciliatory tone, drawing anger from China.

China staged war games around Taiwan in May shortly after Lai’s inauguration, saying it was “punishment” for separatist content in his speech, and Chinese warplanes and warships operate near the island on an almost daily basis. — Reuters

India’s space strategy: harness data and tiny satellites to capture market beyond SpaceX

STOCK IMAGE | Image by 0fjd125gk87 from Pixabay

BENGALURU – India has a plan to carve out a beachhead in the battle for commercial space, officials say: crunching space data, building small satellites and launching them cheaply into orbit rather than challenging heavyweights such as SpaceX head-on.

In particular, it is taking aim at providing cost-effective services and hardware to sectors such as communications, agriculture and commodities, where high-quality data is a precious resource.

At stake is a launch market worth $14.54 billion by 2031, and a related data services market pegged at $45 billion by 2030.

“The world has gone from satellites the size of a Boeing plane to the size of a laptop,” said AK Bhatt, director general of the Indian Space Association, an industry body.

“This is a sector that India can win, instead of challenging heavy launches where Elon Musk has dominance. The country already has an historical advantage in data mining and interpretation.”

Since February, India has opened its space sector to private players and created a 10 billion rupee ($119 million) venture fund to support space startups. It has also unveiled plans for crewed space exploration and a mission to Venus, but the focus is on developing commercial ventures.

In many ways it will be an uphill fight. Other countries such as Japan and China have advanced space industries, and designs on cheap launches. Spaceflight itself is difficult; the startup landscape globally is littered with failed boosters and satellite designs.

For India, “the tech is there and the ability is there… but space is tricky and very competitive, and while private companies have shown that they can create a niche for themselves, we need more proof of concept,” said Namrata Goswami, a space policy expert at Arizona State University.

She added that the Indian government must be an “anchor customer” for private industry.

Most of the revenue growth is expected to come from so-called downstream data applications, said Pawan Goenka, chairman of IN-SPACe, India’s space regulatory body.

Those involve crunching data from orbit to help improve crop yields on earth, build more accurate navigation systems, bolster telecommunications, tighten border security and fight climate change, Goenka said.

Indian companies such as Bellatrix Aerospace, Pixxel, Agnikul Cosmos, Dhruva Space and others are already building or have launched small satellites or satellite components.

India’s space agency, ISRO, last month completed the third and final developmental flight for its Small Satellite Launch Vehicle. The design will then be handed to private companies.

“The end uses of Earth observation are vast,” Goenka said. “What we are doing is address various parts of the puzzle.”

Bengaluru-based SatSure, for example, has been providing real-time satellite data to the Airports Authority of India to enhance air traffic management and safety, helping planes avoid weather hazards. The project is expected to save 37.5 billion rupees ($446 million) in fuel costs for airlines annually by 2025 and result in a roughly 70% reduction in airport process planning timelines, the authority said.

Earth observation (EO) satellites – orbiting cameras and sensors – can unlock similar savings in other areas, said the company’s chief executive, Prateep Basu.

“EO is solving problems that span across utilities, navigation, trading, industries, helping save millions of dollars,” Basu said.

GOVERNMENT PUSH

Since the government opened up the market, companies big and small have jumped in, with legacy IT firms like Infosys investing in satellite imaging company GalaxEye Space Solutions, Google-backed Pixxel signing contracts with NASA, and Baring- and Promus-backed SatSure taking on clients such as HDFC Bank and global seed company Syngenta.

Dhruva Space became one of the first to be handed a permit to operate satellite communication centers on earth – to date the dominion of ISRO.

“India is a software powerhouse and produces some of the best minds in the world in data science, machine learning, and artificial intelligence. The space downstream market is, at the end of the day, a software play,” said Aravind Ravichandran, founder of France-based advisory firm Terrawatch Space.

The consultancy Euroconsult forecasts that between 2023 and 2032, about 26,104 small satellites – weighing less than 500 kilogrammes (1,100 lb) – will be put in orbit, averaging 1.5 tons of daily launch mass. The firm expects the overall small satellite industry to be worth $110.5 billion in the next decade.

Indian space companies have already seen an influx of funding – $126 million in 2023, a 7% increase from the $118 million raised in 2022 and an increase of 235% from the $37.6 million raised in 2021, according to Tracxn data.

But India has only about 2% of market share in commercial space activities, demand is still largely dependent on global clients, and well-established U.S., Russian and Chinese companies are formidable rivals.

“To truly make a dent, (Indian) solutions have to scale to the rest of south Asia and then to the rest of the world,” said Pixxel founder and CEO Awais Ahmed. — Reuters

Beyond the brush of Abe L. Orobia

Artist and art educator ABE L. OROBIA believes that forging one’s own path is of greater significance than relying on inherited fame

During the height of the pandemic, artist Eleazar Abraham L. Orobia, better known as Abe, was one of those artists who didn’t stop teaching art, even though there was difficulty communicating it. A lecturer at the College of St. Benilde, Abe had a full setup, a dual cam and recorded art sessions via Zoom. “Even though sometimes the sessions are long, my students appreciate it. Other online study sessions were stressful for students during the pandemic. Maybe, our sessions made them happy since it was something new,” shares Abe.

Abe hails from a lineage of artists. He belongs to the Luna bloodline; yet, Abe believes that one’s greatness should not solely rely on having a prestigious family member. “Whether you’re a son or a grandchild. My mantra is to make your own path to become great yourself. Where you’re good at, that’s your goal because the circumstances of the time given to you are different,” he says. At the age of five, he achieved the distinction of being the youngest participant in two group exhibitions organized by the First Filipino Good Samaritan Artists. These exhibitions took place in the Philamlife Pavilion at U.N. Avenue, Manila, in 1989. Abe, a Fine Arts graduate from the University of Santo Tomas, has participated in various group exhibitions and developed his own solo exhibitions. He was the recipient of the TOYM (The Outstanding Young Men of the Philippines) Award in 2022 for his long-standing artistry, education, and cultural activities. His recent showcase titled Unconquerable at the Pinto Art Museum in 2023 explores the themes of time and nature, emphasizing their all-encompassing nature. However, the exhibition primarily focuses on the tenacious strength of the human soul, portrayed by crumpled papers.

Last year, he also created several pieces for Kinetix+, the first luxury boutique gym in the country, which he collectively named “Bodies of Motion” featuring grayscale line art pieces of people participating in strength training. “It’s about energy. It’s about power and strength,” he shares. Know more about the artist as he shares his creative process and upcoming exhibits.

How long have you been painting and what prompted you to start painting?

I came from a family of artists so at a young age, I was exposed to arts, because of my dad, and his peers. I was exposed to exhibitions early. When I was five years old, I was already participating in art exhibitions. I had my solo exhibition at six years old. What prompted me to paint was because of the environment that I am in. In college, I had an organization which I handled. I was the founder of Surit Sining, Surit, to search in art, the deeper meaning of art. Our advisor was the UST Museum Director and the Secretary General at the time of UST, Father Isidro Abano.

What is your favorite subject to paint?

I really do symbolism. And then nature subjects. During the pandemic, my love for bicycles came back. I’m from Muntinlupa. I’m able to bike to Rizal, Laguna, and Batangas. Anywhere, actually. Nature got deeper for me. It became all-encompassing since so much was lost during the pandemic. Nature became a healing thing to me. Human figures are also there but I prefer nature as a subject matter, currently.

I had an exhibition at the National Commission for Culture and the Arts, the title was Images of the Nation. I championed the farmers, the maritime people, the health workers, the policemen, everyone that got affected by the pandemic. I painted human figures. Then, there are floating papers because floating papers represent the life of a person, it’s short; it’s beautiful but it’s short. We’re just in transit in the world. In my nature subject, those floating papers are still there. But eventually, I changed the material of the papers into aluminum foils from the tube of my paints. Human presence, it means that humans have a great influence on nature. We should take care of it.

As an artist, I don’t change my style. I just like to add details even if it’s black and white.

As an educator and lecturer, what do you teach others about arts?

I have workshops in Ayala Museum. We work with the collections of the Ayala Museum. There’s Amorsolo, Juan Luna, Lozano. I tour people around, my students in particular. When I tour them around, I tell them about the factors about the artworks. The “stylism” at the time.

There is a lecture portion, and they were pleased that I taught them how to apply the method, style, and draw. And then as an educator, I encourage my students to always be passionate in what they do. Time is really essential. In reality, it is irrelevant whether one is wealthy or not; it is crucial to strive for excellence. If you’re already putting in effort but not giving it your all, it’s a waste. Maybe that’s why kids learn so much from me: I always show them demos. However, they may become overwhelmed with me at times due to my high expectations. Nevertheless, I’m generous. I’m just stern, I really warn them.

For example, your student is not sure what medium they want to use. How do you inspire them? Or how do you make them decide on which medium to choose?

Actually, what I always say is, I might be your teacher but I’m just one of many. I don’t give myself much praise. I’m only one of the artists they’ll be acquainted with once they start working professionally. What I’m teaching is just an eye-opener. I introduce many mediums that students may use. There are pastels, oils, and acrylics. I often think that the most vital aspect of a good painting is your ability to draw. If you’re not skilled at drawing, you’ll struggle to paint. I encourage them to experiment with several mediums until they find one that they appreciate. Others may struggle with one medium but excel at another.

I encourage them. I supply them with videos that I own. I allow my students to record how I work. Especially during the pandemic. My lectures are like a workshop for them. In areas such as anatomy, I take a scientific approach rather than simply painting. I split things down as much as possible into modules. And, during the pandemic, I ask my head to lead a plenary session. It may seem arrogant to say this, but we were the professors who were most sought-after by pupils following the pandemic. We never saw each other in class throughout the pandemic since it was all online. I mean, when they began attending school in person, they looked for us. They said that even though teaching them was all online, they really learned something.

Out of all the exhibits that you have done, do you have a favorite?

Maybe my last two exhibitions, Images of the Nation, because I was able to showcase creative voices in a disenfranchised population. Art is crucial. Doctors are the most important thing during the pandemic. However, if there were no painters or photographers at the time, no one would have been able to provide an update on what was going on in society. Through my paintings and poems, I was able to demonstrate the value of art amid a difficult time such as the pandemic. And then, my last exhibition at the Pinto Art Gallery, “Unconquerable.” These are my reflections of the pandemic. “Unconquerable” is the human spirit. I was inspired by Ecclesiastes, a time for everything. There are things that are meant for everything. A time to die, a time to be born. The floating papers are also present.

You did artworks for Kinetix+, which are collectively entitled “Bodies of Motion.” Is there anything more that you can tell us about it? What was the medium that you used for the artworks at the gym?

My work in Kinetix+ was commissioned almost by the end of 2022 and I finished it in the latter part of 2023 which was revealed to the public during the gym’s soft launch in October 2023. I asked for a creative brief. That’s what I always do. My client asked me if I can portray body builders in motion doing workouts. He wanted the color to be in gray, use monotones to fit the interior of Kinetix+, more on lines, and no faces. I went through several studies using ink on paper and acrylic emphasizing on movements while I was guided on the proper forms. First, I also textured the canvas with an acrylic medium. To add more depth and layers. I enjoyed that process. That’s where you can show less is more in grayscale or black and white. It’s big but when you look closely, you can see the depth, the texture. The lines that I created were powerful because the lines I made were suggestive. The ones that were lifting the barbell, I really showed the raw energy. Even the ground was exploding. The ones that were bench-pressing, there were lines pointing up to create an impression that there was struggle. You can tell a lot by doing the simplest things, lines then black and white. It was right not to put faces on the subjects to represent everyone. The linear element gives quality about the movement and power.  I really appreciated my client’s attention to detail and it really helped me understand the science behind it. When I say science, the correct postures like in the three major depictions of the series deadlift, back squat and bench press since we both agreed that my paintings will not just be mounted to adorn Kinetix+’s walls but also serve as a visual guide. Kinetix+ is more than simply a gym; it’s a sophisticated and smart gym with professional and skilled coaches to help any fitness enthusiast. Going back to the other three paintings, the decision not to include faces is really appropriate. It depicts as if the lifters are truly zoned in. In addition, I developed a rationale for the greyscale portrayals of the figures in my series. Grey denotes control, insight, and self-worth, all of which gym-goers strive for. They would feel more skilled and exemplary after completing Kinetix+’s training.

What advice can you give young artists or your co-artists if they find themselves uninspired to continue a certain artwork or to start an artwork?

First and foremost, you must be fundamentally skilled, since if you do not develop yourself fundamentally, you will struggle to progress. Sometimes you have to force yourself to work. It can help if you’re more versatile as an artist, know more subjects, or simply doodle every day. At the same time, in terms of skill, having confidence is essential because many artists lose faith in themselves. Also, don’t let what you see influence you. Simply continue doing what you are doing. The more distractions there are, the less productive you will be. If you have to lock yourself in your room, do so. Remove any distractions that may interfere with your ability to concentrate. Remain focused.

What are you looking forward to this year?

I’ll be having a solo exhibition at Art Verite next year. I’ll be attending the Mindanao Art Fair this year. I will also attend Art Dubai next year.

For updates regarding Abe L. Orobia’s work, visit https://www.facebook.com/SiningWithABE.

 


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Industrial Transformation ASIA-PACIFIC 2024 to empower manufacturers for regenerative manufacturing

The 7th edition of Industrial Transformation ASIA- PACIFIC (ITAP) — a HANNOVER MESSE event, organized by Constellar with international partner Deutsche Messe, will take place from Oct. 14-16, 2024 at Singapore EXPO. Against the backdrop of national policies driving Artificial Intelligence (AI) development and industry adoption 1 for long-term business and environmental sustainability, this year’s event will focus on the transformative power of AI in advancing regenerative manufacturing. As a tech enabler, AI optimises resources and processes to achieve ESG goals while balancing business growth and environmental preservation. AI-driven solutions enhance operational efficiency and resilience, improve workplace safety, reduce waste, and help align manufacturing operations with sustainability targets, paving the way for a greener future.

ITAP is the region’s premier showcase of manufacturing solutions, as well as launchpad for innovations. This year it will feature over 400 products and solution showcases from over 30 countries, including leading industry players such as Amazon Web Services, Azbil Corp., Delta Electronics, Jungheinrich Singapore, Red Hat, SAP, Siemens, and many others. Regional and country pavilions from China, Germany, Hong Kong SAR, Indonesia, Japan, Malaysia, Singapore, South Korea and the UK will also foster cross-border networking, collaboration and knowledge exchange in one vibrant marketplace.

Launch of First Industry Whitepaper Detailing AI Adoption Approach

ITAP 2024 will launch its first industry-specific whitepaper, “Regenerative Manufacturing — Unlocking ASEAN’s Growth through Design and AI,” developed in partnership with Kearney. The first of its kind targeted at accelerating the technological transformation of ASEAN’s manufacturing industries, more than 350 mid-to-senior-level executives across various manufacturing industries, including CxO-level executives, participated in the surveys and interviews. The whitepaper explores how optimizing product design and integrating AI-enabled solutions can unlock regenerative manufacturing, offering ASEAN manufacturers a compelling pathway to rapid growth.

The whitepaper identifies key trends crucial for manufacturers in the region to capture growth opportunities, providing actionable steps to kick-start regenerative manufacturing. For instance, nearly 60% of respondents identified AI investment as the most prevalent manufacturing trend, followed by focuses on ESG and long-term sustainability at nearly 50%. The steps highlighted in the whitepaper aim to balance profitability with environmental sustainability, helping manufacturers transform for long-term growth. The whitepaper also showcases case studies from industries where regenerative practices will be essential.

“There is a golden opportunity for ASEAN manufacturers to capture US$1.2 trillion in growth, and companies must ensure they are well-positioned for this. The journey toward regenerative manufacturing will be iterative, evolving with continuous learning and adaptation. As a trusted adviser to leading companies globally, Kearney is proud to drive transformative impact through Regenerative Manufacturing,” said Mr. Keat Yap, Asia-Pacific Co-Lead, Operations and Performance, Kearney.

A more detailed sharing on the Whitepaper will be conducted by report authors Keat Yap, Partner and Young Han Koh, Principal, both from Kearney at 11.40 a.m. on Day 1 at the Industrial Transformation Forum (ITF).

Learn about AI Implementation with ITAP’s AI Discovery Journey and at the Industrial Transformation Forum

With close to 90% of the Whitepaper respondents indicating AI investment as critical, while only 23% are leading in AI adoption, ITAP 2024 has curated an AI Discovery Journey for attendees to discover practical applications of AI across the entire manufacturing value chain. Attendees can discover actionable insights and tools to integrate AI in their operations, as well as explore AI solutions, regardless of where they are on their digital transformation journey.

AI integration also takes center stage at this year’s Industrial Transformation Forum. Supported by Strategic Knowledge Partners Deloitte, Kearney, and McKinsey & Company, the two-day conference provides attendees with comprehensive insights and best practices from over 60 influential global thought leaders. Key themes include:

  • Leading The Intersection of Leadership, Digital Transformation, and Manufacturing Complexity with AI
  • Digitalizing with Secure AI-Powered Intelligent Operations
  • Crafting Human-Centric Smart Manufacturing Strategies Empowered by AI
  • Aligning Sustainable Manufacturing Practices with AI-Powered Solutions
  • Harnessing AI Technology for Building Antifragile Supply Chains

Attendees can check out new launches by Cantier X.O by Cantier Systems and FORXAI Mirror by Konica Minolta Business Solutions Asia; as well as other smart and AI-powered showcases such as the SAP Business AI in supply chain by SAP, Senseye Predictive Maintenance and asset intelligence by Siemens, Contentserv Product Experience Cloud by Contentserv Inc., NMS-AIoT Application Server by Planet Technology Corp., AI Autopilot and Innoglas by Innowave Tech, and many more.

“Business AI has the potential to drive significant value for our customers and partners, particularly in the industrial space, creating resiliency for the supply chain. At ITAP 2024, SAP will showcase how companies can ‘bring out their best’ by transforming supply chains with AI-driven insights, recommendations, and automation that’s integrated right into specific business processes. Visitors can experience SAP Business AI in action and learn all about our latest industry innovations, including GROW with SAP, SAP Digital Supply Chain, and sustainability solutions,” said Peter Moore, Chief Revenue Officer, Enterprise Cloud, SAP Asia Pacific Japan.

Siemens will also be organizing an Industrial AI networking session on Day 1 (Oct. 14) to connect with existing and potential customers. An early AI pioneer since the 1970s, and with decades of experience in discrete and process industries, Siemens is committed to enabling companies to drive transformation effectively by making industrial-grade AI accessible without the need for specialised AI expertise. This is the 6th year that Siemens has participated in ITAP.

“As a forerunner in developing and using Industrial AI, Siemens has long worked to improve the capabilities of AI in product and production design, operations and service delivery. At ITAP 2024, we will demonstrate how small and medium enterprises can transform their business by harnessing the power of AI to revolutionize the way they design, develop, manufacture and operate,” said Isabel Chong, Senior Vice-President, ASEAN — Digital Industries, Siemens.

Other Key Highlights @ ITAP 2024

ITAP 2024 will welcome the first ever DEXPO Robotics Zone @ ITAP, occupying over 500 square meters with 10 renowned Chinese robotics experts2 showcasing how AI and advanced robotics, such as intelligent robots and smart logistics solutions, are driving automation, boosting efficiency and transforming the future of manufacturing. DEXPO, in collaboration with Chinese government agencies and organisations, organizes the World Artificial Intelligence Conference (WAIC), one of the most influential AI events within the global tech, science, and industry ecosystem; and the China International Industry Fair (CIIF), one of the largest-in-scale industrial events in China showcasing latest materials, technologies and solutions to enhance the entire spectrum of smart and sustainable manufacturing supply chain.

Technologies on showcase include collaborative robots (cobots) and autonomous mobile robots (AMRs) for automotive, semiconductors, and healthcare industries; automated Guided Vehicles (AGVs), and vision-guided robotic systems for warehouse and logistics automation; industrial high-precision sensors for robotics, automotive, and medical sectors; and more.

ITAP 2024 will also be hosting the inaugural Red Hat Tech Summit by Red Hat Asia Pacific, one of the world’s leading providers of enterprise open-source solutions. The industry-driven summit features in-depth workshops on leveraging transformative technologies to shape tomorrow’s factories, cost-effective industrial architecture design, cutting-edge cybersecurity strategies for automation systems and an interactive session on Red Hat OpenShift AI and its manufacturing use cases.

Attendees can also gain in-depth insights into the future of manufacturing and explore cutting-edge innovations at the following:

  • InnoX stage, a new show-and-tell platform for presentations and interactive sessions led by exhibitors with new launches from DELTA, MISUMI South East Asia and O2 Network, showcases from local and regional R&D institutions, and product pitches from start-ups such as Augmentus, Autentica, Circular Unite, GAIA Tech, InnoArk, Invisu, Myrlabs, River Venture Studio and more.
  • Industrial Innovation Stage, focusing on the latest market and technology trends, collaborations and country-specific strategies to transform the nations’ manufacturing sectors. Sharing their experiences and knowledge are exhibitors from Singapore, Germany, Vietnam, and the UK, including AWS, Azbil, Red Hat, Contentserv, and Power Solutions.
  • Thematic Zones and Industry-Led Pavilions, spotlighting cutting-edge innovations, smart solutions and their applications by key industry players to drive industry excellence and collaboration in various manufacturing clusters.

These include live demonstrations in the Industrial Transformation Experience Zone (by Singapore Polytechnic), Intelligent Sustainable Connecting Hub (by Delta) and Intralogistics Experience Zone (by Jungheinrich), as well as the Made-In-China Pavilion (by Focus Technology Group), Startup AM Pavilion (by NAMIC) and Smart Manufacturing Pavilion (by GSR United). For instance, Singapore Polytechnic’s Company & Workforce Transformation (SP CWT) initiative will be showcasing end-to-end solutions to support enterprise innovation.

 


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BSP to cut rates by 25 bps — poll

The skyline of Metro Manila. — PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) will likely continue its easing cycle with another 25-basis-point (bp) rate cut at its meeting on Wednesday, analysts said. 

A BusinessWorld poll conducted last week showed that 16 out of 19 analysts expect the Monetary Board to reduce rates by 25 bps at its policy review meeting on Oct. 16.

If realized, this would bring the target reverse repurchase rate to 6% from the current 6.25%.

On the other hand, two analysts expect the central bank to cut by 50 bps, while one analyst sees the BSP keeping policy rates unchanged on Wednesday.

The Monetary Board began its easing cycle with a 25-bp cut in August, the first time it reduced borrowing costs in nearly four years.

“I’m expecting the Board to cut further (this) week, by an additional 25 bps. This is especially so in the wake of the extremely soft September print, which undershot expectations, including the BSP’s own forecast range,” Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said in an e-mail.

Mr. Chanco said that the decision to cut will be “fairly ‘easy’ as the BSP has “so much room to continue normalizing policy without risking going overboard, in view of how fast and how much inflation has fallen in recent months.”

Patrick M. Ella, economist at Sun Life Investment Management and Trust Corp., said that slowing inflation makes a “solid case” for the BSP to cut rates.

Headline inflation sharply eased to 1.9% in September from 3.3% in August. This was also the slowest print in over four years or since the 1.6% clip in May 2020.

“Better still, inflation eased in the heavily weighted food basket on the back of lower tariffs on rice. This gives BSP the assurance that inflation is back in the bottle, and will stay on track over the coming months,” Sarah Tan, an economist from Moody’s Analytics, said.

Food inflation slowed to 1.4% in September from 4.2% in August and 10% a year ago.

Nomura Global Markets Research Chief ASEAN Economist Euben Paracuelles said that easing inflation will “allow the BSP to reduce further the restrictiveness of its monetary stance in a measured way.”

“The lower-than-expected September inflation supports the continuation of monetary easing,” Philippine National Bank economist Alvin Joseph A. Arogo added.

Maybank Investment Banking Group Senior Economist Zamros Bin Dzulkafli said that markets are anticipating inflation to stay within range in the next few months, due to the tariff cut on rice imports and India’s decision to lift the export ban on non-basmati white rice.

“Headline inflation is expected to remain within or even below target in the coming months due to favorable base effects and the improving outlook for food supply especially for rice,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

In the first nine months of the year, headline inflation averaged 3.4%. This was also the BSP’s full-year forecast.

BSP Governor Eli M. Remolona, Jr. earlier said that inflation is now on a “target-consistent path” which allows it to shift to a less restrictive policy stance.

“With the latest CPI and likelihood that lackluster demand has contributed to these benign inflation estimates, we believe the BSP has room to cut by another 25 bps at the next Monetary Board meeting,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said.

“We believe there is scope for our consumer price index (CPI) given the food price slippage, and waning electricity rate hike effects, to absorb higher imported inflation due to recent oil price adjustments,” he added.

GRADUAL EASING
While the central bank will continue easing rates, analysts said this will likely be done in a gradual manner.

“However, the BSP may opt for a small cut, mindful of the impact of geopolitical tensions in the Middle East on the inflation outlook, the recent depreciation of the peso against the US dollar, and the repricing of Fed rate cut expectations. Additionally, BSP Governor Remolona alluded to favoring a gradual pace of rate cuts,” China Bank Research said.

The Monetary Board would likely go for 25-bp rate cuts over 50 bps, Mr. Remolona said earlier, as the latter would be more appropriate for a “hard-landing” scenario.

Mr. Neri said that the BSP is also likely to “opt for a modest 25-bp rate cut rather than a more aggressive 50-bp reduction.”

“While inflation has slowed to 1.9% in September, there are several factors that warrant a more cautious approach,” Mr. Neri added.

Chinabank Research also noted risks to the inflation outlook, citing rising global oil prices.

“Hence, the BSP may decide on a small cut in next week’s meeting to mitigate inflationary pressures, especially since higher oil prices could lead to second-order effects,” Chinabank Research said.

“The risks we see here are oil supply shocks (in the form of geopolitical blow-ups) and food-related supply disruptions (like weather) that will interrupt the BSP’s pace of cuts,” Mr. Ella added.

Mr. Asuncion said they revised its inflation forecast to 3.2% this year and 2.5% next year.

“Caveat to this benign inflation outlook is the Middle East event risk featuring the escalation of Israel-Iran hostilities that can sustain oil price volatility and renewed US dollar strength,” he added.

Mr. Neri also cited other risks that could lead to supply disruptions such as the La Niña weather event and a spike in African Swine Fever cases.

The latest bulletin from the state weather bureau showed that there is a 71% chance of La Niña forming in the September-November season and will likely persist until the first quarter next year.

“A gradual reduction in the policy rate would help the economy withstand the impact of these risks in case they materialize,” Mr. Neri added.

“Among the factors for this potential decision include Philippine inflation being well within target, resilient gross domestic product (GDP) growth, and expectations for the Fed to gradually reduce rates by 25 bps next month,” Security Bank Vice-President and Research Division Head Angelo B. Taningco said.

Ms. Tan said that the 50-bp rate cut by the Fed also gives room for the BSP to further lower policy rates.

The latest economic growth also paves the way for more calibrated rate reductions.

“Recent economic activity prints and emerging growth prospects also suggest that aggressive monetary easing isn’t necessary,” Mr. Neri said.

Philippine GDP expanded by 6.3% in the second quarter, the fastest in five quarters or since the 6.4% in the first quarter of 2023.

“Election-related spending, better weather and slower inflation in the coming months are likely to underpin more solid growth prints, reducing the need for massive rate cuts,” Mr. Neri added.

PESO
Meanwhile, Chinabank Research also noted that the BSP will take into consideration the recent peso depreciation.

“This month, the peso has depreciated back to the P57 level against the US dollar as markets pulled back expectations of another jumbo 50-bp cut by the Fed this year after a strong jobs report and as the conflict in the Middle East remains at risk of further escalation,” it said.

The local unit closed at P57.205 per dollar on Friday, strengthening by 15.5 centavos from its P57.36 finish on Thursday. Week on week, however, the peso sank by 91 centavos from its P56.295 finish on Oct. 4.

“Several Fed officials, including Chair Powell, have voiced their support for a more gradual pace of easing following their initial 50-bp reduction in September,” Chinabank Research said.

“A 25-bp cut by the BSP next week would keep the interest rate differential between the BSP’s and the Fed’s policy rate at 100 bps, thereby exerting less downward pressure on the peso,” it added.

Meanwhile, Oikonomia Advisory & Research, Inc. said they expect a 50-bp reduction this week as the “significant slowdown in inflation (gives) BSP a longer runway to cut rates.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also sees a 50-bp reduction in order to match the Fed’s latest rate cut.

“By matching all Fed rate cuts in lockstep, to optimize monetary easing and support economic growth,” he said in an e-mail.

On the other hand,  Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said that the BSP may keep rates steady and opt to cut by 25 bps later on in December, citing inflationary risks such as the recent reserve requirement ratio cut, election-related spending, and elevated fuel prices.

Mr. Ravelas said that easing must be implemented “slowly but surely” and flagged the possibility of October inflation breaching the 3% level.

Government debt payments decline in August

BW FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

THE NATIONAL GOVERNMENT’S (NG) debt service payments slipped year on year in August as principal payments for domestic borrowings dropped, the Bureau of the Treasury (BTr) reported.

The latest data from the BTr showed that debt payments declined by 1.49% to P186.22 billion in August from P189.03 billion in the same month in 2023.

Debt service refers to payments made by the government on domestic and foreign borrowings.

Principal payments accounted for the bulk or 71.66% of debt payments for the month.

In August, amortization payments fell by 8.83% to P133.44 billion from P146.36 billion in the same month in 2023.

Broken down, principal payments on domestic debt dropped by 13.83% to P122.03 billion in August from P141.62 billion a year ago.

Principal payments to foreign creditors surged by 140.52% to P11.4 billion in August from P4.74 billion last year.

On the other hand, interest payments jumped by 23.7% to P52.78 billion in August from P42.67 billion a year ago.

Domestic interest payments went up by 33.26% to P39.36 billion in August from P29.54 billion last year. Interest paid to foreign creditors also inched up by 2.19% to P13.42 billion in August from P13.13 billion last year.

In August, interest payments on local borrowings comprised of P18.7 billion in fixed-rate Treasury bonds, P16.87 billion in retail Treasury bonds, P3.74 billion in Treasury bills (T-bills), and others (P50 million).

“The decline in overall debt payments in August is mainly due to the drop in principal payments, likely from the government’s strategic debt management efforts,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said in a Viber message.

“The increase in interest payments is due to higher interest rates on new and existing debt,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the lower debt payments were largely due to the smaller amount of maturing National Government debt as well as the stronger peso.

The peso strengthened by P2.254 to P56.111 against the dollar at end-August from its P58.365 finish at end-July.

Mr. Ricafort said the central bank’s 25-basis-point (bp) rate cut in August may have also reduced annual debt payments.

The Bangko Sentral ng Pilipinas (BSP) cut its policy rate for the first time in nearly four years, bringing the key rate to 6.25% from an over 17-year high of 6.5%.

EIGHT-MONTH PERIOD
In the January-August period, the NG’s debt service bill jumped by 33.49% to P1.55 trillion from P1.16 trillion in the comparable year-ago period.

Amortization payments accounted for 67.14% of the eight-month tally.

Principal payments rose by 34.7% to P1.04 trillion in the first eight months from P772.64 billion last year. Amortization payments on domestic debt reached P879.65 billion, while payments on external debt stood at P161.09 billion.

Meanwhile, interest payments rose by 31.07% to P509.44 billion in the first eight months from P388.68 billion a year prior.

Interest paid on domestic debt amounted to P362.72 billion, while those on external debt stood at P146.72 billion.

“Looking ahead, debt payments will be influenced by interest rates and the government’s borrowing strategy. High interest rates may keep pressure on interest payments, but debt management efforts could help mitigate costs,” Mr. Ravelas said.

BSP Governor Eli M. Remolona, Jr. recently said the Monetary Board could reduce interest rates by 50 bps more this year by delivering two more 25-bp cuts at its Oct. 16 and Dec. 19 meetings.

“The debt servicing bill for the coming months would largely be a function of maturing NG debt/government securities as well as the future trend of the budget deficits that need to be financed partly through NG borrowings,” Mr. Ricafort said in a Viber message.

As of end-August, the budget gap narrowed by 4.86% to P697 billion from P732.5 billion last year, according to Treasury data.

This year’s borrowing plan is set at P2.57 trillion, with P1.92 trillion to be borrowed from local sources and P646.08 billion from overseas.

Recto says ‘wealth tax’ is not necessary in PHL

People sit outside a luxury retail mall in Singapore June 15, 2017. — REUTERS

By Beatriz Marie D. Cruz, Reporter

FINANCE SECRETARY Ralph G. Recto is not in favor of a “wealth tax,” saying there are already enough taxes.

“I think we have a lot of wealth taxes also to a certain degree,” Mr. Recto told reporters on the sidelines of an event on Oct. 8.

This is after debt-watch group Freedom from Debt Coalition recently pushed for the imposition of a wealth tax on individuals whose net worth exceeds P300 million.

Mr. Recto said that he is willing to study wealth tax proposals, but said these taxes could be “counterproductive.”

“But I’m telling you, why should you also tax those who are working hard,” he said.

In the Philippines, different versions of a wealth tax have been proposed in recent years but none have been approved by Congress.

In 2022, the Makabayan bloc filed House Bill No. 258, which seeks to impose a 1-3% tax on the “super-rich” or people with net value of taxable assets exceeding P1 billion. It estimated that the tax would raise P236.7 billion annually from the top 50 richest Filipinos.

“We have real property taxes on land and buildings. The more land, the more houses you have, the more tax you get,” Mr. Recto said.

Sought for comment, Freedom from Debt Coalition said the country’s current tax system is regressive, as it relies heavily on consumption taxes than income and property taxes.

“Based on the proportion of income, the poor are slapped higher taxes due to consumption tax,” a representative said in a Viber message.

The group called on the need for a more progressive tax system, citing Article VI Section 28 in the 1987 Constitution.

“Those who have more in life should have more in taxes. To follow this provision [in the Constitution], billionaires must be taxed,” it said.

Meanwhile, IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said that a wealth tax would not be inflationary.

“Unlike the consumption taxes so favored by the government and economic managers that always add to inflationary pressure at the time of imposition as well as permanently raise the general price level, the billionaire wealth tax already filed and refiled in Congress does not affect inflation or prices at all,” he said via Viber message.

Former Finance Secretary Benjamin E. Diokno had previously said the government prefers consumption taxes over wealth or luxury taxes.

Mr. Africa said countries that impose wealth taxes include Norway, Spain, Switzerland, Argentina, Colombia, Uruguay and Bangladesh.

“Others like France, Italy, the Netherlands, Belgium and Portugal tax more specific wealth like financial assets or real property. Tax rates range from 0.1% to 3.5%,” he added.

Implementing the House’s proposed 1-3% wealth tax could generate at least P500 billion in annual revenues, Mr. Africa said.

“Most of this or around P280 billion will even come from just the 50 richest Filipinos. The impact on them is negligible and just equivalent to stock market, forex or interest rate movements that they easily absorb every day,” he said.

“The Philippines infamously has among the worst income and wealth inequalities in the world. Implementing a billionaire wealth tax will send a strong signal of governance that is serious about social justice and economic progress,” he added.

Tariff cuts result in nearly P9B in foregone revenues

EXECUTIVE ORDER NO. 62 reduced tariffs on imported rice to 15% until 2028. — PHILIPPINE STAR/RYAN BALDEMOR

TARIFF CUTS on imported rice and electric vehicles (EVs) resulted in nearly P9 billion in foregone revenues, the Bureau of Customs (BoC) said on Sunday.

“Recent policy changes, particularly the implementation of Executive Order (EO) No. 62, which reduced rice tariffs from 35% to 15%, resulted in a revenue loss of P6.09 billion from rice imports,” the BoC said in a statement.

EO 62, which took effect on July 5, cut import tariffs on rice to 15% until 2028 to tame inflation.

The same order also extended the zero-tariff policy on electric vehicles and parts through 2028. It also expanded the coverage of the zero-tariff policy to e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles, hybrid EVs and plug-in hybrid EV (PHEV) jeepneys or buses.

“EO 62 expanded the zero-import duties under EO 12 to include battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in HEVs, and specific parts and components, leading to an additional revenue loss of P2.9 billion,” Customs said.

For the first nine months of the year, Customs collected P690.84 billion, missing its target for the period by 0.44%.

However, this was 4.61% higher than P660.39 billion collected in the same period last year.

The end-September collection also made up 72% of the bureau’s P959-billion collection goal for this year.

The BoC said it remains optimistic of hitting its revenue targets for this year as it boosts its collection of nontraditional revenues like post-entry audit and auction.

“Our commitment to transparency and efficiency in customs operations empowers us to build a stronger economy for all Filipinos,” Customs Commissioner Bienvenido Y. Rubio was quoted as saying. B.M.D. Cruz

Asia exports to outperform with 2024 growth of 7.4%

A worker uses a microscope at an electronics manufacturing assembly plant in Biñan, Laguna, April 20, 2016. — REUTERS

EXPORTS from Asia are expected to grow 7.4% this year, outperforming other regions, the World Trade Organization (WTO) reported.

In its October Global Trade Outlook and Statistics, the WTO upgraded its forecast for world merchandise trade growth in 2024 to 2.7% from the previous estimate of 2.6%.

Meanwhile, its estimate for world merchandise trade in 2025 was downgraded to 3% from 3.3% previously.

“The demand for traded goods was weaker than expected in Europe but stronger than foreseen in Asia,” the WTO said.

In particular, the WTO projects exports in Asia to grow 7.4% this year. This is faster than the expected growth in exports from the Middle East (4.7%), South America (4.6%), Commonwealth of Independent States (CIS) (4.5%), Africa (2.5%), and North America (2.1%). Exports from Europe are expected to decline 1.4%.

“Stronger-than-expected Asian export growth has been sustained by increased shipments of electronics, automotive products, and other manufactured goods from China,” WTO Chief Economist Ralph Ossa said in a briefing last week. 

“But other economies in the region are also reporting strong export growth, including India, Vietnam, and Singapore,” he added.

Meanwhile, imports are expected to grow faster in the Middle East to 9%. It was followed by South America (5.6%), Asia (4.3%), North America (3.3%), CIS (1.1%), and Africa (1%). Europe is expected to see a decline of 2.3% in imports.

Next year, the WTO projects exports from Asia to grow the fastest at 4.7%, while the region is expected to import 5.1% more in 2025.

“Exports from Asia surged following the COVID-19 pandemic but have plateaued at a high level, partly explaining the region’s weak export growth since then,” the WTO said.

“If the forecast is realized, by the second quarter of 2025, Asian exports will have risen 29.4% compared to their average level in 2019,” it added.

However, the WTO identified regional conflicts, monetary policy divergence, and fragmentation of supply chains linked to geopolitical factors as among the risks to the trade outlook.

“An escalation of the conflict in the Middle East could have negative consequences for global and regional trade flows, particularly for any countries directly involved,” it said. 

“The effects would also be felt in other regions, including through further disruptions to shipping and rising energy prices due to higher risk premiums,” it added.

Mr. Ossa said that the WTO sees more and more “evidence of decoupling and fragmentation of trade based on geopolitical concerns.”

“Trade is increasingly conducted among like-minded countries, with the war in Ukraine accelerating the process. However, we have yet to observe a global trend of regionalization or near-shoring,” he added.

When asked about the possible effects of the EU Deforestation Regulation (EUDR) on global trade, Mr. Ossa said that it is something that the WTO has not formally evaluated yet, but he noted that conversations concerning the topic are ongoing.

“On the one hand, there’s, I think, a shared concern about deforestation and a shared willingness to also do something to protect forests,” he said.

“On the other hand, there’s a concern, of course, about fairness. From a historical sense, there’s also a concern about implementation,” he added.

He said that member countries are not just concerned with what regulations such as the EUDR try to achieve, “but also how they are achieving it and whether they are imposing excessive burdens on, for example, small- and medium-sized enterprises (SMEs) in developing countries.”

In a statement sent over the weekend, the Philippine Exporters Confederation, Inc. (Philexport) said that Philippine companies badly need more support to ensure compliance with sustainability rules.

Citing a report by the Danish Industry and the Employers Confederation of the Philippines, Philexport said that the Philippine firms have turned out to have among the lowest levels of awareness, levels of the EU’s environmental, social, and governance (ESG) legislation.

“In light of this, the study underscores the need for support measures to prepare companies for increased demands, enabling local firms to better benefit from upcoming opportunities and ensuring that EU companies meet their supply chain impact targets,” it added.

In particular, it said that implementing ESG training for SMEs is needed to establish a foundational understanding within the firms of what ESG entails and the business opportunities it presents.

Citing the study, Philexport said that 72% of the Philippine companies cited their unfamiliarity with the EU legislation.

However, it is said that the lower awareness could be attributed to the fewer demands faced by the Philippine firms.

The EU Commission said on Oct. 2 that it proposed to move the implementation of the EUDR to Dec. 30, 2025 for large companies and to June 30, 2026 for micro and small enterprises.

The EUDR was previously scheduled for implementation by the end of 2024 for large companies. — Justine Irish D. Tabile

Senators urge gov’t to build modern nuclear plant instead of reviving BNPP

By John Victor D. Ordoñez, Reporter

THE PHILIPPINE government should build state-of-the-art nuclear power plants instead of trying to revive the mothballed Bataan Nuclear Power Plant (BNPP), which may be too old to function, Philippine senators said at the weekend.

“The Bataan Nuclear Power Plant should be separated from the talks about the adoption of nuclear energy here in the Philippines,” Senate Minority Leader Aquilino “Koko” D.  Pimentel III told BusinessWorld in a Viber message.

“That plant is beyond rehabilitation. That cannot be used anymore as an operating nuclear plant. It’s too dangerous.”

He said considering nuclear power is crucial since technology has improved over the years, but the government should also look at other sources of energy to address its power generation issues.

Last week, Philippine President Ferdinand R. Marcos, Jr. and South Korean President signed a deal to conduct a feasibility study on the rehabilitation of the BNPP. The Department of Energy and Korea Hydro & Nuclear Power Co., Ltd. agreed to hold a comprehensive technical and economic feasibly study on the plant.

Manila Electric Co. (Meralco) and South Korea’s Doosan Enerbility Co. Ltd. have also signed a deal to collaborate on low-carbon energy projects and the deployment of nuclear power facilities.

The 620-megawatt Bataan Nuclear Plant was built during the administration of the late dictator President Ferdinand E. Marcos, Sr. and was shut down in 1986 amid corruption allegations and safety concerns. Its construction was completed in the 1980s but it was never used.

Senator Sherwin T. Gatchalian, who heads the Senate ways and means committee, noted that while the Bataan plant might be the quickest route to harnessing nuclear energy, the government is better off exploring modern nuclear technology.

“It would be more prudent for the country to use the latest and safest nuclear technology in it first foray into nuclear power,” he said in a Viber message.

Mr. Gatchalian added that Manila could seek Seoul’s help through the Korea Electric Power Corp. (KEPCO) to determine if reviving the Bataan plant is “commercially feasible and safe.”

Meanwhile, Senate Deputy Majority Floor Leader Joseph Victor G. Ejercito said he is open to reopening the BNPP. “South Korea should have the expertise and experience to assist our nuclear program,” he said in a Viber message.

“The BNPP has been demonized, but it seems people now have realized the benefits of nuclear energy source as many countries like the US, France and other European countries have developed tremendously because of a successful energy mix that includes nuclear power.”

The Department of Energy expects nuclear power to start feeding into the country’s grids by 2032, Energy Director Michael O. Sinocruz earlier told congressmen.

Washington and Manila’s Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy, also known as the 123 Agreement, entered into force on July 2, the US State Department said in a statement on July 9. Both countries signed the deal in November.

The pact provides a legal framework for the export of nuclear materials, equipment and components from the US to the Philippines.

The House of Representatives last year passed on final reading a bill that seeks to establish a Philippine Atomic Regulatory Authority that will oversee the use of nuclear energy in the country.

“South Korea, like the US, is a major exporter of nuclear energy and so has a vested interest in promoting this so they can sell their technology and expertise abroad,” Ibon Foundation Executive Director Jose Enrique “Sonny” A. Africa said in a Viber message.

“The strategic direction of energy development in the Philippines should be towards an indigenously provided and run renewable energy as possible,” he added.

The Philippines is hard-pressed to find other sources of indigenous energy as the Malampaya gas field, which supplies a fifth of its power requirements, nears depletion.

The gas field is expected to run out of easily recoverable gas by 2027.

Manila plans to raise the share of renewable energy in the country’s energy mix to 35% by 2030 and to 50% by 2040 from 22% now.

Senators are set to continue deliberations on a bill that seeks to promote the production of indigenous natural gas and liquefied natural gas, which the government sees as a transition fuel toward adopting more renewable energy sources.

“While there are risks from nuclear plants, nuclear energy is a source of clean, stable energy that can offset the fluctuations from intermittent sources like water and wind,” Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message.