Driven by Optimism to Achieve Economic Growth Above Expectations

Good morning Chief...

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.

Public Consumption and Investment Support Economic Growth

Data from the Central Statistics Agency (BPS) said that economic growth in the second quarter of 2025 grew 5.12% on an annual basis, supported by a surge in public consumption during the Lebaran period and investment growth. This is higher than the previous estimate of below 5%.
Various indicators of public consumption and mobility are still solid such as household consumption accounts for 54% of Gross Domestic Product (GDP). Investment grew 6.99% on an annualized basis.
Ajib Hamdani, Apindo's Economic Policy Analyst, calls it the "Rojali-Rohana paradox". On the one hand, the phenomenon of groups rarely buying and groups only asking questions is still felt; on the other hand, BPS data shows consumption and investment soaring. "Our prediction at that time was in the range of 4.69%-4.81%," said Ajib.

Read more here.

Ahead of New Tariffs, Indonesian CPO Exports to US Still Promising

Indonesia's crude palm oil (CPO) exports to the United States are still promising even though the country's CPO products are subject to an import tariff of 19% that took effect on August 7, 2025. Chairman of the Indonesian Palm Oil Association (Gapki) Eddy Martono said that Indonesia was lucky because the import tariff, which was planned to be imposed at 32%, has been reduced to 19%.
Based on Gapki data in the last five years, Indonesian palm oil exports to the United States have shown an increasing trend. In 2020, the export volume reached 1.5 million tons and increased to 2.5 million tons in 2023, although it declined slightly to 2.2 million tons in 2024. The export value of palm oil in 2024 reached USD 2.9 billion, with Indonesia's market share in the US reaching 89%.
Eddy emphasized the importance of market diversification, especially anticipating the possibility of a further trade war that could affect other markets such as China and the European Union. "Latin America and Africa are alternative markets that are being explored," said Eddy.

Read more here.

Strategies to Curb Financial Crime Other than Blocking Accounts

The government is preparing a number of strategies to reduce the number of financial crimes that are increasingly prevalent. These include closing thousands of online gambling sites, blocking dormant accounts, and receiving public reports of suspicious activity.
As of the end of June 2025, the Financial Services Authority (OJK) noted that the total public losses had reached Rp 4.1 trillion. Of this amount, the victim's funds that were successfully blocked reached IDR 348.3 billion.
Head of PPATK, Ivan Yustiavandana, revealed the government's success in suppressing the circulation of online gambling funds. "In 2024, we thought that online gambling turnover could reach Rp 981 trillion. However, thanks to the hard work of banks, regulators, and the Task Force, we managed to reduce it to Rp 359 trillion," he said at the National Strategy for Combating Financial Crime (5/8/2025).

Read more here.

High Holidays and School Holidays Drive Surge in Tourism and Consumption

The holiday season in the second quarter of 2025 was not only a moment to take a break, but also the main trigger for a surge in national economic activity. Travel by domestic tourists rose 22.32% on an annual basis, while transactions at Jasa Marga toll gates grew 2.86% compared to the previous quarter.
In the second quarter of 2025, domestic tourist trips reached 331.37 million trips, up 22.32% compared to last year. Foreign tourist visits also rose 13.96% to 3.89 million. Throughout the first semester, Indonesia recorded 113.78 million domestic tourist trips and 7.05 million foreign tourist visits.
This growth was also driven by the transportation and storage sector, which rose 8.52%, and the accommodation and food and beverage sector, which grew 8.04%.

Read more here.

Processing Industry Sector Commodities Support Indonesia's Exports

In the last five years, the manufacturing sector has taken a dominant share of Indonesia's export value. Commodities such as animal/vegetable fats and oils, iron and steel, and electrical machinery and equipment are the main commodities exported from the processing industry.
The value of Indonesia's non-oil and gas exports in the first half of 2025 was recorded at US$ 128,385.80 million, growing 8.96% compared to the same period in the previous year. This figure is enough to bring fresh air to increase Gross Domestic Product (GDP) in the first semester of this year.
In terms of destination countries, Indonesia's three main export destinations experienced a significant increase, namely the United States (20.71%), China (8.37%), and Thailand (45.2%). India and Japan in the first half of this year showed a decline of 16.19% and 21.42% respectively.

Read more here.

IMOX and IGEX 2025: Indonesia Marine Offshore Expo (IMOX) and Indonesia oil and Gas Expo (IGEX) will be held again on August 6-August 8, 2024 at Radisson Golf and Convention Center, Batam at 10.00-17.00 WIB. These two events are international-scale energy and maritime sector exhibitions that bring together the largest international companies in the oil, gas and shipbuilding industries in Indonesia. The event, which will bring together more than 3,000 industry professionals, will discuss the latest issues in the energy and maritime industries.

DTI-CX 2025: Digital Transformation Indonesia Conference & Expo (DTI-CX 2025) will be held on August 6-7, 2025 at the Jakarta International Convention Center (JICC), Senayan, Jakarta. DTI-CX 2025 is an event dedicated to IT professionals and policy makers that connects technology as a solution for 13 industries in Indonesia. The event offers a series of activities including exhibition, conference, international tec pavilion, business match meeting, tech workshop , and also live demo. The event organized by PT ACE, Kominfo, MASTEL, and APJII also presents 350+ technology solutions, 60+ strategic conference sessions, and 300+ leading speakers. Information related to free access to the schedule of events can be accessed through the website page https://digitaltransformation.co.id/about-dti-cx/