The Government's Big Ambition in 2026

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The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Government Wants to Step on the Gas in 2026, Brighten the Investment Climate

In the midst of limited fiscal space, President Prabowo Subianto wants to immediately step on the gas to implement his programs in 2026. One of the flagship programs that has been highlighted is the Free Nutritious Meal (MBG), which received a budget of Rp335 trillion in 2026. Apart from the flagship program, the 2026 Draft State Budget is designed with eight main focuses: food security, energy security, superior generation through MBG, quality education, equitable health, cooperative-based populist economy, universal people's defense, and accelerating global investment.

The number of priority agendas has made the 2026 State Budget posture also bloated. State expenditure is designed at Rp3,786.5 trillion, while revenue is only Rp3,147.7 trillion. The deficit reached Rp386.8 trillion or 2.48% of GDP.

Not only jumbo spending, economic growth in 2026 is targeted to reach 5.4%, which is higher than the 2025 State Budget of 5.2%, even though this year's outlook is for the economy to grow in the range of 4.7%-5.0%. Business players and economists have mixed reactions to this.

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"Long Weekend" Independence Day Holiday Drives Increased Spending

In the midst of sluggish purchasing power and the outbreak of the Rohana (Rombongan Hanya Nanya) and Rojali (Rombongan Jarang Beli) phenomena, retailers and shopping centers take advantage of thelong weekend to boost sales. Chairman of the Indonesian Shopping Center Tenants Association (Hippindo) Budiharjo Iduansyah assessed that the moment of August 17 succeeded in lifting visitor traffic . He said that almost all types of businesses in shopping centers felt the impact, ranging from restaurants, clothing stores, to toy outlets. Promotions that were held simultaneously made the shopping atmosphere livelier throughout the long holiday.
Chairman of the Indonesian Shopping Center Managers Association (APPBI), Alphonzus Widjaja, believes that there are still things that need to be considered. Long weekends do not always have the maximum impact on shopping centers. Many middle-class people prefer to travel outside the city or abroad, so shopping centers are not as busy as on a pinch holiday. The main support for visits are food, beverage, and entertainment outlets.

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Strengthening the Middle Class is One Solution to Overcoming Unemployment

Despite various debates about President Prabowo Subianto's claim that the unemployment rate continues to decline, one of the solutions that can be offered to actually reduce unemployment is by strengthening the middle class. According to the Chairman of the Employment Division of the Indonesian Employers Association (Apindo) Bob Azam, the government must mobilize the middle class, which has a high level of consumption, while strengthening sectors that have the greatest labor absorption.
Head of the Manpower Planning and Development Agency of the Ministry of Manpower Anwar Sanusi said that his office, which is mandated to improve skills, always coordinates with the labor market so that every vacancy can be filled with workers who have the capacity to carry out the job.

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Indonesia aims for Africa as new export market

In order to overcome the potential sluggishness of exports after the implementation of reciprocal export tariffs to the United States (US), Indonesian exporters need to look for new market destinations. One potential market that the government is exploring is trade to Africa. Countries on this continent have stable economic growth and are keen to receive imported products from abroad. The African market is as big as China. Africa's population is estimated at 1.3 billion, representing 16% of the world's population.
The products that can be exported include animal & vegetable oils, paper, footwear, wood, and others. Although the purchasing power of the African market is still far below traditional export markets, Africa is very promising in terms of market size growth, trade competition, and trade barriers.

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CPO Prices Rise, Challenge for Indonesia to Boost Productivity

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

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Risk & Governance Summit (RGS) 2025: The Financial Services Authority (OJK) is again organizing the Risk & Governance Summit (RGS) 2025 on Tuesday, August 19, 2025, at 09.00 - 15.00 WIB. RGS 2025 is organized with the aim of building a more resilient and sustainable GRC ecosystem through collaboration and positive contributions. This event can be watched live through the official YouTube channel of the Financial Services Authority(OJK TV) and can be attended for free through the zoom online channel. Online registration information can be directly accessed through OJK Indonesia's social media.

Business Matching DKI Jakarta 2025: The DKI Jakarta Provincial Government through the PPKUKM Office held a Business Matching event on August 19-21, 2025 at the MH Thamrin Multipurpose Room, DKI Jakarta City Hall. This event aims to support the Domestic Product Use Improvement Program (P3DN) by bringing together exhibiting companies that have certified the level of domestic components (TKDN) with commitment-making officials and procurement officials within the DKI Jakarta Provincial Government. Participants who want to participate in this event, participants who are TKDN certified companies can meet directly with decision makers within the DKI Jakarta Provincial Government.