February 28, 2025 • 12 mins
In this episode, Michelle delves into the latest developments shaping Southeast Asia's economic landscape. She starts with an overview of top stories, followed by an in-depth look at Thai stocks and economic insights. The discussion then moves to regional market trends, focusing on the impacts of tariffs on trade dynamics. Michelle highlights Indonesia's digital transformation with advancements in Wi-Fi technology and explores renewable energy opportunities in the country. The episode concludes with a wrap-up and call to action, encouraging listeners to stay informed and engaged with Southeast Asia's rapidly evolving markets.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Thai stocks head for a bear market amideconomic growth woes.
Second, Indonesia adopts faster Wi-Fi to drivegrowth.
(00:21):
Third, Indonesia has 333 gigawatts offinancially viable renewable energy projects.
Let's dive into our first story.
Thailand's benchmark stock index is headingtowards a technical bear market, raising alarms
among investors about the growth prospects forSoutheast Asia's second-largest economy.
(00:41):
The Stock Exchange of Thailand Index fell by asmuch as 2.4% on Friday, pushing its decline
from an October high to over 20%.
This drop signifies investor anxiety over thecountry's economic trajectory, with prominent
companies like Delta Electronics ThailandPublic Company Limited and Airports of Thailand
Public Company Limited being significantcontributors to the downward trend.
(01:06):
The midday closure of the Stock Exchange ofThailand saw it settle at 1,195.26 points,
marking a decrease of 20.47 points or 1.68% intrade valued at 29 billion baht.
Foreign investors have been consistentlywithdrawing from what is currently Asia's
worst-performing equity market in 2025, havingpulled out nearly 10 billion United States
(01:31):
dollars in the past two years.
These actions reflect broader concerns aboutThailand's economy, which missed its growth
targets last year and now faces additionalpressure from United States President Donald
Trump's tariff threats.
Pon Van Compernolle, a managing partner at RVCEmerging Asia Fund, noted that the persistent
(01:52):
weakness in the Stock Exchange of Thailand islargely due to the frail state of the Thai
economy.
He pointed out that government policies overthe last decade have failed to bring about any
substantial structural improvements.
This situation has led to a loss of confidencein the capital markets, further exacerbated by
ongoing sell-offs from both foreign and localinstitutions.
(02:17):
Global funds have sold 381 million UnitedStates dollars of Thai shares on a net basis so
far this year, according to Bloomberg data.
Thailand's economy remains vulnerable,particularly to reciprocal tariffs from the
United States, as it currently imposes higherimport duties on American goods compared to
what Washington applies to Thai exports.
(02:40):
In response, Thai government agencies areexploring measures to safeguard the country's
trade interests.
Meanwhile, Prime Minister PaetongtarnShinawatra has urged for more "closer"
cooperation between the Bank of Thailand andthe Finance Ministry to bolster economic
growth.
This downturn in Thai stocks is part of alarger regional sell-off, influenced by
(03:03):
President Trump's latest tariff threats thathave dampened investor sentiment across
Southeast Asia.
Indonesia's stock index has also taken a hit,poised to enter a technical bear market,
contributing to a more than 10% drop in theMSCI ASEAN Index since its peak in September.
In a significant leap towards digitaladvancement, Indonesia has embraced the latest
(03:27):
in wireless technology with the introduction ofWi-Fi 6E and Wi-Fi 7.
This move is part of a broader governmentinitiative aimed at accelerating the nation's
digital transformation, a strategy anticipatedto unlock one hundred eighty-seven point six
billion United States dollars in economicpotential over the next six years.
(03:50):
The Ministry of Communication and DigitalAffairs recently expanded broadband access by
adding twenty-four new twenty megahertzchannels.
This expansion is expected to alleviate Wi-Ficongestion, enhance connectivity across the
nation, and connect an additional one point onefour million people to the internet.
Moreover, it is set to lower enterprise costsand enhance productivity, marking a pivotal
(04:16):
step in Indonesia's digital evolution.
At the launch event in Jakarta, CommunicationMinister Meutya Hafid emphasized Indonesia's
strategic positioning on the global digitalmap.
"By adopting Wi-Fi 6E and Wi-Fi 7 on the sixgigahertz frequency band, Indonesia is making a
tangible demonstration of our commitment todriving digital transformation as a national
(04:40):
agenda," she stated.
The Indonesia Technology Alliance estimatesnearly two hundred billion United States
dollars in economic value will be associatedwith the allocation of the twelve hundred
megahertz in the six gigahertz band.
This includes one hundred twenty-six point fourbillion United States dollars in economic
output, thirty-seven point seven billion inproducer surplus to Indonesian enterprises, and
(05:04):
twenty-three point four billion in consumersurplus.
Ismail, director general of Resources andPostal and Informatics Devices at the Ministry
of Communication, highlighted the importance ofWi-Fi 6 and Wi-Fi 7 as Indonesia enters the
gigabit-speed internet era.
"Various modern applications, includingartificial intelligence, require high speeds,
(05:27):
especially for home use.
With Wi-Fi 6 and Wi-Fi 7, Indonesia is now partof that era," he remarked.
The opening of the six gigahertz spectrum isexpected to enable faster, low-latency, and
more reliable Wi-Fi, benefiting businesses, thepublic, and basic services.
(05:48):
This advancement allows more devices to connectsimultaneously while maintaining a stable
connection, ideal for high-density areas likestadiums.
Despite the promising outlook, Ismail mentionedthat a key challenge remains the availability
of digital infrastructure, particularly fiberoptic networks.
However, Wi-Fi 6E and Wi-Fi 7 are expected tosignificantly improve internet quality in
(06:13):
Indonesia, especially for fixed broadbandnetworks, though mobile networks still require
further improvements.
The Indonesia Technology Alliance noted thatthe new spectrum allocation aligns with the
approach adopted by eighty-one percent ofcountries that have implemented Wi-Fi six
gigahertz.
The maximum eighty megahertz channel widthensures optimal performance for high-density
(06:37):
deployments, making it suitable for bothresidential and enterprise use.
One of the standout features of this initiativeis the Very Low Power category, enabling indoor
and outdoor operations for portable devices inthe five thousand nine hundred twenty-five to
six thousand four hundred twenty-five megahertzrange.
This supports various applications, includingultra-fast file transfers, seamless video
(07:01):
conferencing, and high-quality streaming ineight K.
While the government does not directly partnerwith specific companies, it collaborates with
various stakeholders, including global firmslike Cisco Systems Incorporated, HP
Incorporated, Huawei Technologies CompanyLimited, and Samsung Group, as well as
telecommunication operators.
(07:23):
"We are working together to develop technicalspecifications and regulations to support the
implementation of this technology," Ismailadded.
Let's delve into our final story for today,focusing on Indonesia's renewable energy
sector, which is primed for significant growthand transformation.
A recent study by the Institute for EssentialServices Reform has unveiled that Indonesia
(07:48):
possesses an impressive 333 gigawatts offinancially viable renewable energy projects.
This revelation is part of a broader effort toboost the country's renewable energy mix,
potentially reaching fifty percent by 2030.
Indonesia's vast technical renewable energypotential exceeds three thousand six hundred
(08:09):
eighty-six gigawatts.
However, a significant portion of thispotential remains untapped.
The study identifies one thousand five hundredsuitable locations for ground-mounted solar,
onshore wind, and mini- and micro-hydro powerplants, with a combined technical potential of
five hundred forty-eight point five gigawatts.
(08:30):
Out of these, three hundred thirty-threegigawatts are deemed financially viable based
on current tariff regulations and financingstructures.
The breakdown of these financially viableprojects includes one hundred sixty-five point
nine gigawatts of ground-mounted solar power,one hundred sixty-seven gigawatts of onshore
(08:50):
wind power, and zero point seven gigawatts ofthermal power.
This potential is crucial as the country aimsto surpass its National Electricity General
Plan target, which aims for around one hundredeighty gigawatts of solar and wind power by
2060.
Fabby Tumiwa, Executive Director of theInstitute for Essential Services Reform,
(09:12):
highlighted the minimal utilization ofIndonesia's solar, wind, and hydro potential,
despite its vastness.
A key barrier has been the perceived lowreliability of solar and wind energy due to
their intermittent nature.
However, advancements in energy storagetechnologies, such as battery energy storage
(09:33):
systems and grid-forming inverters, are pavingthe way for these renewable sources to become
the backbone of Indonesia's energy transition.
The study emphasized that transitioning toclean energy not only reduces emissions but
also has the potential to drive economic growthand create new jobs.
This is particularly relevant as Indonesiaseeks to achieve eight percent economic growth
(09:57):
and energy independence under PresidentPrabowo's leadership.
The expansion of solar energy manufacturing,driven by increased demand, is expected to play
a pivotal role in this transition.
Martha Jesica Mendrofa, Social, Policy, andEconomic Research Coordinator at the Institute
for Essential Services Reform, pointed out sixkey regions identified as the most promising
(10:21):
for renewable energy development based oneconomic feasibility studies.
Papua and Kalimantan have the highestconcentration of potential solar power plant
sites, while Maluku, Papua, and South Sulawesiare optimal for wind power plants.
Meanwhile, West Sumatra and North Sumatra holdthe greatest potential for mini and micro-hydro
(10:43):
development.
The findings suggest that approximatelysixty-one percent of the three hundred
thirty-three gigawatts of potential renewableenergy projects have Equity Internal Rate of
Return levels exceeding ten percent.
This surpasses Indonesia's target in theNational Electricity General Plan.
The potential for financially viable renewableenergy projects is expected to grow as
(11:05):
regulatory frameworks improve, infrastructuredevelops, and capital expenditures decline.
The Institute for Essential Services Reform hasmade several key recommendations for
policymakers, PLN, lenders, and renewableenergy project developers.
These include allocating land for renewableenergy projects, simplifying the licensing
(11:28):
process, and setting specific renewable energytargets.
To support integration in high-profit potentiallocations, PLN is encouraged to enhance
planning, expand the grid, and reformprocurement mechanisms.
In addition to launching a feasibility study onsolar, wind, and thermal power plants, the
Institute for Essential Services Reformsubmitted pre-feasibility technical reports on
(11:53):
specific sites to the Directorate General ofNew Renewable Energy and Energy Conservation.
This initiative aims to assist the governmentin integrating these projects into PLN's RUPTL,
further cementing Indonesia's commitment torenewable energy.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
(12:16):
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Thai stocks head for a bear market amideconomic growth woes.
Second, Indonesia adopts faster Wi-Fi to drivegrowth.
(00:21):
Third, Indonesia has 333 gigawatts offinancially viable renewable energy projects.
Let's dive into our first story.
Thailand's benchmark stock index is headingtowards a technical bear market, raising alarms
among investors about the growth prospects forSoutheast Asia's second-largest economy.
(00:41):
The Stock Exchange of Thailand Index fell by asmuch as 2.4% on Friday, pushing its decline
from an October high to over 20%.
This drop signifies investor anxiety over thecountry's economic trajectory, with prominent
companies like Delta Electronics ThailandPublic Company Limited and Airports of Thailand
Public Company Limited being significantcontributors to the downward trend.
(01:06):
The midday closure of the Stock Exchange ofThailand saw it settle at 1,195.26 points,
marking a decrease of 20.47 points or 1.68% intrade valued at 29 billion baht.
Foreign investors have been consistentlywithdrawing from what is currently Asia's
worst-performing equity market in 2025, havingpulled out nearly 10 billion United States
(01:31):
dollars in the past two years.
These actions reflect broader concerns aboutThailand's economy, which missed its growth
targets last year and now faces additionalpressure from United States President Donald
Trump's tariff threats.
Pon Van Compernolle, a managing partner at RVCEmerging Asia Fund, noted that the persistent
(01:52):
weakness in the Stock Exchange of Thailand islargely due to the frail state of the Thai
economy.
He pointed out that government policies overthe last decade have failed to bring about any
substantial structural improvements.
This situation has led to a loss of confidencein the capital markets, further exacerbated by
ongoing sell-offs from both foreign and localinstitutions.
(02:17):
Global funds have sold 381 million UnitedStates dollars of Thai shares on a net basis so
far this year, according to Bloomberg data.
Thailand's economy remains vulnerable,particularly to reciprocal tariffs from the
United States, as it currently imposes higherimport duties on American goods compared to
what Washington applies to Thai exports.
(02:40):
In response, Thai government agencies areexploring measures to safeguard the country's
trade interests.
Meanwhile, Prime Minister PaetongtarnShinawatra has urged for more "closer"
cooperation between the Bank of Thailand andthe Finance Ministry to bolster economic
growth.
This downturn in Thai stocks is part of alarger regional sell-off, influenced by
(03:03):
President Trump's latest tariff threats thathave dampened investor sentiment across
Southeast Asia.
Indonesia's stock index has also taken a hit,poised to enter a technical bear market,
contributing to a more than 10% drop in theMSCI ASEAN Index since its peak in September.
In a significant leap towards digitaladvancement, Indonesia has embraced the latest
(03:27):
in wireless technology with the introduction ofWi-Fi 6E and Wi-Fi 7.
This move is part of a broader governmentinitiative aimed at accelerating the nation's
digital transformation, a strategy anticipatedto unlock one hundred eighty-seven point six
billion United States dollars in economicpotential over the next six years.
(03:50):
The Ministry of Communication and DigitalAffairs recently expanded broadband access by
adding twenty-four new twenty megahertzchannels.
This expansion is expected to alleviate Wi-Ficongestion, enhance connectivity across the
nation, and connect an additional one point onefour million people to the internet.
Moreover, it is set to lower enterprise costsand enhance productivity, marking a pivotal
(04:16):
step in Indonesia's digital evolution.
At the launch event in Jakarta, CommunicationMinister Meutya Hafid emphasized Indonesia's
strategic positioning on the global digitalmap.
"By adopting Wi-Fi 6E and Wi-Fi 7 on the sixgigahertz frequency band, Indonesia is making a
tangible demonstration of our commitment todriving digital transformation as a national
(04:40):
agenda," she stated.
The Indonesia Technology Alliance estimatesnearly two hundred billion United States
dollars in economic value will be associatedwith the allocation of the twelve hundred
megahertz in the six gigahertz band.
This includes one hundred twenty-six point fourbillion United States dollars in economic
output, thirty-seven point seven billion inproducer surplus to Indonesian enterprises, and
(05:04):
twenty-three point four billion in consumersurplus.
Ismail, director general of Resources andPostal and Informatics Devices at the Ministry
of Communication, highlighted the importance ofWi-Fi 6 and Wi-Fi 7 as Indonesia enters the
gigabit-speed internet era.
"Various modern applications, includingartificial intelligence, require high speeds,
(05:27):
especially for home use.
With Wi-Fi 6 and Wi-Fi 7, Indonesia is now partof that era," he remarked.
The opening of the six gigahertz spectrum isexpected to enable faster, low-latency, and
more reliable Wi-Fi, benefiting businesses, thepublic, and basic services.
(05:48):
This advancement allows more devices to connectsimultaneously while maintaining a stable
connection, ideal for high-density areas likestadiums.
Despite the promising outlook, Ismail mentionedthat a key challenge remains the availability
of digital infrastructure, particularly fiberoptic networks.
However, Wi-Fi 6E and Wi-Fi 7 are expected tosignificantly improve internet quality in
(06:13):
Indonesia, especially for fixed broadbandnetworks, though mobile networks still require
further improvements.
The Indonesia Technology Alliance noted thatthe new spectrum allocation aligns with the
approach adopted by eighty-one percent ofcountries that have implemented Wi-Fi six
gigahertz.
The maximum eighty megahertz channel widthensures optimal performance for high-density
(06:37):
deployments, making it suitable for bothresidential and enterprise use.
One of the standout features of this initiativeis the Very Low Power category, enabling indoor
and outdoor operations for portable devices inthe five thousand nine hundred twenty-five to
six thousand four hundred twenty-five megahertzrange.
This supports various applications, includingultra-fast file transfers, seamless video
(07:01):
conferencing, and high-quality streaming ineight K.
While the government does not directly partnerwith specific companies, it collaborates with
various stakeholders, including global firmslike Cisco Systems Incorporated, HP
Incorporated, Huawei Technologies CompanyLimited, and Samsung Group, as well as
telecommunication operators.
(07:23):
"We are working together to develop technicalspecifications and regulations to support the
implementation of this technology," Ismailadded.
Let's delve into our final story for today,focusing on Indonesia's renewable energy
sector, which is primed for significant growthand transformation.
A recent study by the Institute for EssentialServices Reform has unveiled that Indonesia
(07:48):
possesses an impressive 333 gigawatts offinancially viable renewable energy projects.
This revelation is part of a broader effort toboost the country's renewable energy mix,
potentially reaching fifty percent by 2030.
Indonesia's vast technical renewable energypotential exceeds three thousand six hundred
(08:09):
eighty-six gigawatts.
However, a significant portion of thispotential remains untapped.
The study identifies one thousand five hundredsuitable locations for ground-mounted solar,
onshore wind, and mini- and micro-hydro powerplants, with a combined technical potential of
five hundred forty-eight point five gigawatts.
(08:30):
Out of these, three hundred thirty-threegigawatts are deemed financially viable based
on current tariff regulations and financingstructures.
The breakdown of these financially viableprojects includes one hundred sixty-five point
nine gigawatts of ground-mounted solar power,one hundred sixty-seven gigawatts of onshore
(08:50):
wind power, and zero point seven gigawatts ofthermal power.
This potential is crucial as the country aimsto surpass its National Electricity General
Plan target, which aims for around one hundredeighty gigawatts of solar and wind power by
2060.
Fabby Tumiwa, Executive Director of theInstitute for Essential Services Reform,
(09:12):
highlighted the minimal utilization ofIndonesia's solar, wind, and hydro potential,
despite its vastness.
A key barrier has been the perceived lowreliability of solar and wind energy due to
their intermittent nature.
However, advancements in energy storagetechnologies, such as battery energy storage
(09:33):
systems and grid-forming inverters, are pavingthe way for these renewable sources to become
the backbone of Indonesia's energy transition.
The study emphasized that transitioning toclean energy not only reduces emissions but
also has the potential to drive economic growthand create new jobs.
This is particularly relevant as Indonesiaseeks to achieve eight percent economic growth
(09:57):
and energy independence under PresidentPrabowo's leadership.
The expansion of solar energy manufacturing,driven by increased demand, is expected to play
a pivotal role in this transition.
Martha Jesica Mendrofa, Social, Policy, andEconomic Research Coordinator at the Institute
for Essential Services Reform, pointed out sixkey regions identified as the most promising
(10:21):
for renewable energy development based oneconomic feasibility studies.
Papua and Kalimantan have the highestconcentration of potential solar power plant
sites, while Maluku, Papua, and South Sulawesiare optimal for wind power plants.
Meanwhile, West Sumatra and North Sumatra holdthe greatest potential for mini and micro-hydro
(10:43):
development.
The findings suggest that approximatelysixty-one percent of the three hundred
thirty-three gigawatts of potential renewableenergy projects have Equity Internal Rate of
Return levels exceeding ten percent.
This surpasses Indonesia's target in theNational Electricity General Plan.
The potential for financially viable renewableenergy projects is expected to grow as
(11:05):
regulatory frameworks improve, infrastructuredevelops, and capital expenditures decline.
The Institute for Essential Services Reform hasmade several key recommendations for
policymakers, PLN, lenders, and renewableenergy project developers.
These include allocating land for renewableenergy projects, simplifying the licensing
(11:28):
process, and setting specific renewable energytargets.
To support integration in high-profit potentiallocations, PLN is encouraged to enhance
planning, expand the grid, and reformprocurement mechanisms.
In addition to launching a feasibility study onsolar, wind, and thermal power plants, the
Institute for Essential Services Reformsubmitted pre-feasibility technical reports on
(11:53):
specific sites to the Directorate General ofNew Renewable Energy and Energy Conservation.
This initiative aims to assist the governmentin integrating these projects into PLN's RUPTL,
further cementing Indonesia's commitment torenewable energy.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
(12:16):
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
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