Working Together to Drive Economic Growth

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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.

Anticipating the Third Quarter Economic Slowdown

After recording above-expected economic growth in the second quarter of 2025, at 5.12%, challenges loomed in the third quarter. There is no longer the consumption drive of Lebaran and the manylong weekend holidays as in the first and second quarters. This is a challenge for Indonesia. At the same time, from an external aspect, the US reciprocal tariffs came into effect in August. This will also add pressure on exports this quarter.
Economists expect the third quarter economy to experience a challenging slowdown. The third quarter economy is expected to reach 4.9%. Growth is expected to be supported by government spending.

Read more here.

Indonesia's Biodiesel Path Forward into the European Market

Indonesia's biodiesel exports to Europe enter a new phase. The World Trade Organization (WTO) Panel's announcement that the EU acted inconsistently with key aspects of the WTO Subsidies and Antisubsidies Agreement marks Indonesia's victory in a dispute that has been ongoing since 2023. This decision was announced on Friday (22/8/2025).
Catra de Thouars, Vice Chairman of the Indonesian Biofuel Producers Association, said he welcomed the WTO Panel's decision as a positive step and good news. This decision will be one of the ways for the national biodiesel industry to get justice in international trade.

Read more here.

Continuing Global Expansion, QRIS Can Now Be Used in Japan

Bank Indonesia (BI) officially launched a cross-border Quick Response Code Indonesian Standard (QRIS) with Japan, which took effect August 25, 2025. This continues the previous expansion, where QRIS can already be used in Malaysia, Thailand, Singapore, Japan, and China.
According to Bank Indonesia data released in mid-July, the volume of digital payment transactions through QRIS in the second quarter of 2025 grew 148.50 percent year on year (YoY). This increase helped drive the total volume of national digital transactions which reached 11.67 billion transactions.

In addition to QRIS, transaction volume through mobile applications rose 32.16% YoY, and transactions via internet banking grew 6.95% YoY. Payment system infrastructure is also getting more solid: BI-Fast processed 1.12 billion transactions with a value of IDR 2,788 trillion, while BI-RTGS recorded transactions worth IDR 47,481 trillion.

Read more here.

National Sharia Bank is here, Sharia Banking is getting brighter

Bank Victoria Syariah (BVIS) shareholders officially approved the change in the company's name to Bank Syariah Nasional (BSN), at an extraordinary general meeting of shareholders (EGMS) held at Menara BTN, Jakarta, Wednesday (20/8/2025). This decision also marks the continuation of the BTN Syariah spin off process, which was previously a sharia business unit (UUS) into a sharia commercial bank (BUS). BVIS will act as a shell company in the establishment of this BSN.
The strategy is clearly to separate BTN's sharia entity so that it can grow more independently, with a new, stronger identity. Going forward, the BSN name will be used by BTN Syariah as the company's branding and service products, of course after going through the entire licensing process from the regulator. For BTN, this spin off is part of their larger roadmap. Over the years, BTN Syariah has been known to focus on property financing, particularly subsidized housing for the lower middle class.

The presence of BSN is expected to encourage the growth of the Islamic banking industry. So far, the Islamic banking industry has indeed grown but is still lagging behind compared to the overall banking industry. Citing data from the Financial Services Authority (OJK), until June 2025 the assets of the Islamic banking industry reached Rp 967.33 trillion or 7.41% of the total national banking industry. This figure grew 7.82% compared to the same period last year.

Read more here.

Export and Investment Key to Second Quarter 2025 Economy

Indonesia's economy in the second quarter of 2025 grew by 5.12% on an annualized basis. This growth was driven by three main components. Namely, exports, consumption of non-profit institutions serving households (LNPRT), and gross fixed capital formation (PMTB).
Exports of goods and services grew by 10.67% in the second quarter of 2025. This was followed by the LNPRT component which grew by 7.82% and 6.99% of fixed capital formation. The three main components that drove the economy in the second quarter of 2025 were slightly different from those that drove the economy in the first quarter of 2025.

Read more here.

Global Human Capital Summit (GHC Summit) 2025: GIPA (Global Indonesian Professionals' Association) will hold its fourth annual Global Human Capital Summit (GHC Summit) on August 26, 2025 at The Westin, Jakarta. Themed Diaspora as Indonesia's Secret Weapon to Win and Thrive in a Changing World Order, the event is a flagship forum that brings together leaders, policymakers and professionals to advance Indonesia's human capital development agenda. The GHC Summit aims to explore the potential of the Indonesian diaspora as a strategic force amidst global dynamics. Further information regarding registration and participation can be obtained by contacting the organizers via social media Instagram gipa_id.

BPS Releases Socio-Economic Data Monthly Report July 2025: The Central Bureau of Statistics (BPS) will release the July 2025 Socio-Economic Data Monthly Report on August 26, 2026. This report is needed by businesses to see the socio-economic conditions in the community so that they can make the right decisions for their business.

''Celebrating success is not a problem, but it is much more important to pay attention to the lessons learned from failure.'' (Bill Gates-Founder of Microsoft)