China's Business Relocation and Exports of Rare Earth Minerals, Shoes, and Seafood

Good morning, Chief...

Here is important information related to the development of the business world that needs attention today, based on the curation of the SUAR Team.

Impact of the Tariff War, Indonesia Becomes a Business Relocation Destination for China

Various Chinese manufacturers are now starting to look for new locations (industrial relocation) to avoid high US tariffs. This opens up an opportunity for Indonesia to become a location for entrepreneurs from the Bamboo Curtain country to invest.
Indonesia has entered the radar of Chinese investors to invest due to stable economic growth and a large middle class.
Chinese investment in Indonesia has continued to increase over the past few years. This is reflected in the stable growth of Chinese foreign direct investment (FDI), reaching USD 30.5 billion throughout 2021 to H1-2025 or 14% of foreign investment in Indonesia.

Read more here.

Prabowo Pushes for Exploration of Nuclear Raw Material Elements

The government has established the Mineral Industry Agency to encourage large investments in the research and development of valuable rare minerals such as rare earth elements (REE).
BIM will be the sole manager of REE 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 material.
As a material that can be used for technology equipment raw materials to nuclear power plant raw materials, REE extraction has a number of implications for Indonesia in the future. Namely, from reducing import dependence, opening up opportunities for technology transfer, diversifying resources, to the independence of strategic mineral needs.
To find out how the potential for managing rare earth elements will be in the future, please continue here.

Rapidly Growing, Made In Indonesia Shoes Are Popular in the Global Market

During the first six months of 2025, the footwear industry showed an impressive performance. A jump in exports of 13.6% was recorded compared to the same period last year.
Meanwhile, the value of footwear exports 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.

Read more here.

Indonesian Seafood Products Target the Camel Country Market

The Indonesian fisheries industry has received a positive signal from the Middle East. Six Indonesian processed product fish processing unit (UPI) companies have 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. As proof, Mohammed Bawazir for Trading Co Ltd (MBT) signed a letter of intent (LoI) worth US$ 60 million, or about Rp 984 billion at an exchange rate of Rp 16,400 per US dollar, to purchase 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 processed fishery product producers and exporters to re-approach the highly potential Middle Eastern market.

Read more here.

Household Consumption Stable, Consumer Behavior Shifts

Household consumption is still the largest source of Indonesia's economic growth to date. Especially during holiday seasons and public mobility during long holidays.
Data from the Central Statistics Agency (BPS) shows that the growth of household consumption is still consistent or stable in the range of 4.9% since 2024. In the second quarter of 2025, household consumption was 4.97% (annually), a slight increase compared to the first quarter of 2025, which was at 4.95%. The highest growth ever occurred in the third quarter of 2021, post-pandemic, at 5.96%.

Read more here.

Apkasi Autonomy Expo (AOE) 2025: Apkasi Autonomy Expo (AOE) 2025 is an annual trade exhibition and investment forum organized by the Association of All Indonesian Regency Governments (Apkasi). This event is an important platform for regency governments from all over Indonesia to promote their regional potential, 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 as well as business matching and workshops are also presented. This event is open to regency governments who want to be exhibitors, as well as business actors, investors, and the general public who can attend as visitors.

Labor Demonstration August 28, 2025: As many as 10,000 people who are members of several institutions, 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 that will be held on Thursday, August 28, 2025 in front of the DPR RI building, Jakarta. In addition to Jakarta, demonstrations will also take place simultaneously in various regions, including large industrial areas such as Karawang, Bekasi, Bogor, and other areas throughout Indonesia.

The demonstrator convoy 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 assembly point. There are six main demands, namely to abolish the outsourcing system, reject low wages, demand an increase in the 2026 minimum wage of 8.5%–10.5%, urge the revocation of Government Regulation Number 35 of 2021, ask the government to stop layoffs, and carry out tax reform for workers.

Estimated Congestion Areas in Jakarta:

Around Senayan–DPR/MPR: potential for congestion & road access restrictions;
Slipi–Tomang–Palmerah route: potential for barricades & lane closures;
Jl. Sudirman & Jl. Thamrin: alternative routes are also likely to be congested;
TransJakarta bus services: potential for delays & route changes.

"The Indonesian business world must not be satisfied with being 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." (General Chairman of Apindo, Shinta Widjaja Kamdani)