China Business Relocation and Export of Rare Earth Elements, Shoes, and Seafood

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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.

Impact of tariff war, Indonesia becomes China's business relocation destination

Various Chinese manufacturers are now starting to look for new locations (industrial relocation) to avoid high US tariffs. This opens up opportunities for Indonesia to become a location for entrepreneurs from the Land of Panda to invest.
Indonesia is already on the radar of Chinese investors to invest in due to its stable economic growth and large middle class.
Chinese investment in Indonesia has continued to increase over the past few years. This is reflected in the steady growth of China's foreign investment (FDI), reaching USD 30.5 billion throughout 2021 until H1-2025 or 14% of foreign investment in Indonesia.

Prabowo Encourages Exploration of Nuclear Raw Material Elements

The government established the Minerals Industry Agency to encourage heavy investment in research and development of high-value rare minerals such as rare earth elements (ETJs).
BIM will be the sole manager of ETJ in Indonesia, separate from the Ministry of Energy and Mineral Resources. In addition, the government plans to regulate the governance of the development of this type of mining goods.
As a material that can be used for raw materials for technological equipment to nuclear plant raw materials, ETJ extraction has a number of benefits for Indonesia in the future. Namely, from reducing import dependence, opening up technology transfer opportunities, resource diversification, to independence of strategic mineral needs.
To find out what the future holds for the management of these rare earth elements, please continue here.

Made in Indonesia Shoes Growing Fast, Sold in Global Market

During the first six months of 2025, the footwear industry showed an impressive performance. A 13.6% surge in exports was recorded compared to the same period last year.
Meanwhile, the export value of footwear in the January-June 2025 period reached US$ 3.77 billion or equivalent to around Rp 61.83 trillion at an exchange rate of Rp 16,400 per US dollar. This shows the achievement of local product competitiveness in the global market.

Indonesian Seafood Products Targeting the Camel Country Market

Indonesia's fisheries industry has received positive signals from the Middle East. A total of six Indonesian fish processing unit (UPI) companies received permission to enter the Saudi Arabian market.
The export of Indonesian seafood products to the country of Bani Saud is not just a mirage. The proof is that Mohammed Bawazir for Trading Co Ltd (MBT) signed a letter of intent (LoI) worth US$ 60 million, or around Rp 984 billion at an exchange rate of Rp 16,400 per US dollar, to buy Indonesian processed food products, including canned tuna.
Marketing Director of PT CJ Feed and Care Indonesia Haris Muhtadi welcomed it as a good momentum for Indonesian fishery product producers and exporters to re-approach the potential Middle East share.

Household Consumption Stable, Consumer Behavior Shifting

Household consumption is still the biggest source of economic growth in Indonesia today. Especially when there are moments of holidays and public mobility during long holidays.
Data from the Central Statistics Agency (BPS) shows that household consumption growth has remained consistent or stable at around 4.9% since 2024. In the second quarter of 2025, household consumption amounted to 4.97% (annualized), slightly up compared to the first quarter of 2025 at 4.95%. The highest growth ever occurred in Q3-2021, during the post-pandemic period, at 5.96%.

Read more here.

Apkasi Otonomi Expo (AOE) 2025: Apkasi Otonomi Expo (AOE) 2025 is an annual trade show and investment forum organized by the Association of Indonesian Regency Governments (Apkasi). The event is an important platform for district governments from all over Indonesia to promote the potential of their regions, ranging from tourism, investment, to superior products. AOE 2025 will be held on August 28-30, 2025 at the Indonesia Convention Exhibition (ICE) BSD, South Tangerang. Various series of events and business matching facilities and workshops are also presented. The event is open to district governments who wish to become exhibitors, as well as businesses, investors, and the general public who can attend as visitors.

Labor Demo August 28, 2025: A total of 10,000 people from several organizations, such as the Labor Party and the Confederation of Indonesian Trade Unions (KSPI), along with a coalition of other trade unions, will hold a labor demonstration on Thursday, August 28, 2025 in front of the Indonesian Parliament building, Jakarta. In addition to Jakarta, rallies will also take place simultaneously in various regions, including large industrial areas such as Karawang, Bekasi, Bogor, and other regions throughout Indonesia.

The group of demonstrators will depart from Cikarang via the toll road, from Cikupa-Balaraja via the toll road, from Bogor-Depok via Jalan Raya Bogor, and from Pulo Gadung-Sunter to the DPR-RI gathering point. There are six main demands, namely abolishing the outsourcing system, rejecting low wages, demanding a 2026 minimum wage increase of 8.5%-10.5%, urging the revocation of PP No. 35 of 2021, asking the government to stop layoffs, and implementing tax reform for workers.

Expected Congestion Areas in Jakarta:
1. Around Senayan-DPR/MPR: potential congestion & road access restrictions;
2. Slipi-Tomang-Palmerah route: potential barricades & lane closures;
3. Jl. Sudirman & Jl. Thamrin: alternative routes also possible congestion;
4. TransJakarta bus service: potential delays & route changes.

"The Indonesian business world must not be content to be a 'pawn' on the global chessboard, but must transform into a 'grandmaster' who is able to read the situation, set strategies, and rewrite the direction of the nation's economic history." ( Chairman of Apindo, Shinta Widjaja Kamdani )