Government’s Big Ambitions for 2026

Good morning, Chief

Here is important information regarding the development of the business ecosystem that requires attention today, curated by the SUAR Team.

Government Aims to Accelerate in 2026, Brighten Investment Climate

Amid fiscal space constraints, President Prabowo Subianto aims to immediately accelerate the implementation of his programs in 2026. One of the flagship programs drawing attention is Free Nutritious Meals (MBG), which is allocated a budget of IDR 335 trillion in 2026. Beyond the flagship program, the 2026 State Budget (RAPBN) is designed with eight main focuses: food security, energy security, an outstanding generation through MBG, quality education, equitable healthcare, people’s economy based on cooperatives, universal defense, and acceleration of global investment.

The large number of priority agendas has also expanded the 2026 state budget. Government spending is planned at IDR 3,786.5 trillion, while revenue is only IDR 3,147.7 trillion. The deficit reaches IDR 386.8 trillion, or 2.48% of GDP.

Not only is spending massive, but the 2026 economic growth is targeted at 5.4%, higher than the 2025 state budget projection of 5.2%, even though this year’s economic outlook is around 4.7%–5.0%. Business actors and economists have varied reactions to this.

Read more here.

"Long Weekend" Independence Day Holiday Drives Increased Spending

Amid sluggish consumer purchasing power and the spread of the Rohana (Group Only Asks) and Rojali (Group Rarely Buys) phenomena, retail businesses and shopping centers are taking advantage of the long weekend holiday to boost sales. Budiharjo Iduansyah, Chairman of the Indonesian Shopping Center Tenants Association (Hippindo), believes that the August 17 moment successfully increased visitor traffic. He mentioned that nearly all types of businesses in shopping centers felt the impact, from restaurants and clothing stores to toy outlets. Simultaneous promotions made the shopping atmosphere livelier throughout the long holiday.
Alphonzus Widjaja, Chairman of the Indonesian Shopping Center Managers Association (APPBI), noted that some things still need attention. Long weekends do not always have the maximum impact on shopping centers. Many middle-class consumers prefer to travel out of town or abroad, so shopping centers are not as crowded as during bridge holidays. The main drivers of visits remain food, beverage, and entertainment outlets.

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Strengthening the Middle Class Becomes One Solution to Tackle Unemployment

Regardless of the debates surrounding President Prabowo Subianto’s claim that the unemployment rate continues to decline, one solution that can be offered to genuinely reduce unemployment is to strengthen the middle class. According to Bob Azam, Head of the Employment Division at the Indonesian Employers Association (Apindo), the government must mobilize the middle class, which has a high level of consumption, while also strengthening sectors with the greatest employment absorption capacity.
Anwar Sanusi, Head of the Employment Planning and Development Agency at the Ministry of Manpower, stated that his office is mandated to coordinate skills development with the labor market to ensure that every job vacancy can be filled by workers with the capacity to perform the work.

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Indonesia Targets Africa as a New Export Market

To counter the potential slowdown in exports following the implementation of reciprocal export tariffs to the United States (US), Indonesian exporters need to seek new market destinations. One potential market being explored by the government is trade with Africa. Countries on this continent have stable economic growth and are receptive to imported products from abroad. The African market is comparable in size to China. Africa’s population is estimated at 1.3 billion, representing 16% of the world’s population.
Products that can be exported include animal and vegetable oils, paper, footwear, wood, and others. Although Africa’s purchasing power is still far below that of traditional export markets, it is very promising in terms of market growth, trade competition, and trade barriers.

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Rising CPO Prices, a Challenge for Indonesia to Boost Productivity

A breath of fresh air has reached plantation entrepreneurs who are still grappling with the challenge of increasing productivity. Driven by rising global demand, crude palm oil (CPO) prices have strengthened recently. It is recorded that the price of crude palm oil on the Malaysian exchange has shown an upward trend since May. As of August 15, 2025, the CPO price closed at MYR 4,472 per ton. This price increase trend is driven by strong demand from both domestic and global markets.

Read more here.

Risk & Governance Summit (RGS) 2025: The Financial Services Authority (OJK) will once again hold the Risk & Governance Summit (RGS) 2025 on Tuesday, August 19, 2025, from 09:00 to 15:00 WIB. RGS 2025 is organized with the aim of building a more resilient and sustainable GRC ecosystem through collaboration and positive contributions. The event can be watched live on OJK’s official YouTube channel (OJK TV) and can be attended for free via the Zoom online platform. Online registration information can be accessed directly through OJK Indonesia’s social media.

Business Matching DKI Jakarta 2025: The Provincial Government of DKI Jakarta, through the PPKUKM Office, is organizing the Business Matching 25 event from August 19–21, 2025, at the MH Thamrin Multipurpose Hall, Jakarta City Hall. The event aims to support the Domestic Product Utilization Enhancement Program (P3DN) by connecting exhibiting companies certified for domestic component levels (TKDN) with commitment-making officials and goods and services procurement officers within the DKI Jakarta provincial government. Participants wishing to join the event, specifically companies with TKDN certification, will have the opportunity to meet directly with decision-makers in the DKI Jakarta provincial government.