Young People as Economic Mainstay, Car Market, UMKM Taxes, Digital Bank Performance

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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.

The Quality of Young People is the Hope of the Nation's Economy

With 70% of the population being of productive age and having a high school education, Indonesia has strong capital to revive the glory of the industry. However, young people are also faced with a number of challenges, such as an economic slowdown that makes wages not optimal so that they are squeezed by financial matters. However, there are many opportunities that can be taken advantage of, from rapid digitalization to the green economy.

These opportunities include 80% internet penetration, the existence of 2,647 start-ups from various fields. There are also opportunities for 1.7 million green jobs , which are projected to contribute Rp 593 trillion-Rp 638 trillion by 2030.

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Automotive Market Slowly Revives

Citing data from the Indonesian Automotive Industry Association (Gaikindo), car sales in October 2025 were the highest so far this year. October 2025 sales grew 19.23% compared to September 2025. However, on an annual basis it decreased by 4.4% compared to October 2024 sales of 77,404 units. Likewise, January-October 2025 sales were still lower than the same period last year. In January-October 2025, car sales reached 635,844 units, down 10.64% compared to January-October 2024 sales of 711,604 units.
The increase in car sales in October 2025 was influenced by two factors: economic growth began to improve and consumer purchasing power stabilized.

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Government Open Opportunity to Make UMKM Final Income Tax 0.5% Permanent

Finance Minister Purbaya Yudhi Sadewa opened the opportunity to make the final Income Tax (PPh) rate for UMKM players of 0.5% of business turnover a permanent policy. Purbaya emphasized that the opportunity can only be considered if business actors show full compliance in reporting turnover. The government will not maintain this incentive if there are still efforts to avoid tax obligations. Currently, the 0.5% final income tax rate has been extended until 2029 for UMKM with a maximum turnover of IDR 4.8 billion per year. Small income tax is needed by UMKM players to ease the burden.

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Despite Economic Slowdown, Digital Bank's Performance Doesn't Stall

In the midst of a slowing economy, a number of digital banks still recorded business growth in the third quarter of 2025. PT Bank SeaBank Indonesia, Bank Saqu, and PT Bank Jago Tbk recorded consistent business growth until the end of the third quarter of 2025. SeaBank Indonesia achieved net profit growth of up to 40% YoY. As for Bank Saqu, since its launch in November 2023, it has now served more than 3.2 million customers. Likewise, Bank Jago has disbursed loans of Rp 23.5 trillion by the end of September 2025, growing 36% YoY. This slick digital bank performance was driven by an increase in the number of transactions, the number of customers, and lending.

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Selected Videos Commission VII Encourages Strengthening Regulations for Industrial Estate Competitiveness

The Last Two Months Are Decisive in the Automotive Industry

New car sales to consumers (retail) in October 2025 increased on an annual basis. However, cumulative sales during January-October fell 9.6% compared to the same period last year. Sales during November-December will determine the achievement of the target. This is because, in 2025, only in October did retail car sales grow positively, selling 74,720 units. In the other nine months, from January to September, car sales fell compared to the same period in 2024. The sharpest declines occurred in January (-18.3%) and July (-16.8%).
Car sales this year are not encouraging, a reflection of people's purchasing power which is still facing pressure. In conditions of economic slowdown and uncertainty, the upper middle class is cautious in spending their funds on tertiary needs, let alone on cars, which are considered luxury goods.

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The 13th US-Indonesia Investment Summit under the theme "Turning Headwind into Opportunity: Unlocking Investment Potential to Power Indonesia's Growth" is organized by AmCham Indonesia. The summit forum is scheduled to be held on Monday, November 17, 2025, 8.30-17.00 WIB, Mandarin Oriental Hotel, Jl. M.H. Thamrin, Jakarta. Discussed will be key priorities for unlocking investment potential, includingeconomic resilience,regulatory reform, and next steps to increase investment across priority sectors. The summit aimed to reflect on progress and identify new pathways to strengthen Indonesia's investment climate and competitiveness, in line with President Prabowo Subianto's administration's target of achieving 8% economic growth. The event also expressed its appreciation to the main sponsor, Diamond Sponsor Bank of America. Event details will be accessible through AmCham Indonesia.

DPR Commission V Working Meeting with the Minister of Public Works. Held on Monday, November 17, 2025, at 13.00 WIB, this meeting is part of the supervisory and legislative functions of Commission V, which generally includes discussions on infrastructure, transportation, disadvantaged areas, transmigration, and disaster mitigation, as well as budgets and strategic policies of related ministries to ensure that development programs run effectively and in accordance with the needs of the community. In addition, the House of Representatives also scheduled several other working meetings, such as the PMI Protection Supervision Working Committee Meeting of Commission IX of the House of Representatives. Information on other House agendas can be accessed through the House's official website.