Data Pact with US, Premium Tourism, and EV Nickel Surge

Good morning, Chief—

Here are today’s key updates shaping Indonesia’s business and economic landscape, curated by the SUAR Team.

Is There an Opportunity from the US–Indonesia Data Agreement?

The US and Indonesian governments have reached a trade negotiation agreement, including on the issue of data.
In an official statement released by the White House, in addition to multi-billion dollar deals, it was revealed that Indonesia will allow its citizens’ personal data to freely flow to the United States, often referred to as Cross Border Data Transfer (CBDF).
“Indonesia will also provide assurance regarding the ability to transfer personal data outside its territory to the United States through recognition that the US is a country or jurisdiction that provides adequate data protection under Indonesian law,” the White House statement noted.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the personal data covered under the US–Indonesia cooperation agreement largely consists of data uploaded voluntarily by the public when registering for accounts on platforms such as Google and Bing.
“When it comes to personal data, much of it is actually uploaded by the public themselves when registering on Google, Bing, conducting e-commerce, or creating email and account profiles,” Airlangga said during a press conference on Tuesday (July 23, 2025).

Read more here.

Economy Slows, But Premium Tourism Keeps Rising

Amid concerns over weakening household purchasing power, Indonesia’s premium tourism and hospitality sector continues to show positive growth. This indicates that the country’s upper-income segment still maintains strong purchasing power—even for discretionary, tertiary needs.
Citing research from Lokadata, average annual household spending on entertainment among the upper 1 and upper 2 classes has increased. In 2024, average annual entertainment spending for the upper 1 class reached Rp1.5 million, up from Rp1.2 million in 2019. Likewise, the upper 2 class saw an increase to Rp600,000 in 2024 from Rp500,000 in 2019. Meanwhile, entertainment spending among middle and lower-income households has remained unchanged.

The vibrancy of premium tourism is also reflected in data from Statistics Indonesia (BPS). The occupancy rate (TPK) for five-star hotels in May 2025 reached 51.70%, up from 50.11% in April.
Strong purchasing power among premium consumers in tourism is further highlighted in the Mandiri Spending Index released in June 2025. During the May long holiday period, spending among upper-class consumers grew by 41% for airline tickets, 4% for hotels, and 12% for restaurants.

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Debating Fare Policies: Expert Urges Government to Develop a National Ride-Hailing App

Throughout this year, a series of protests have been staged by online transport drivers. They carried out mass strikes—known as offbid—and voiced five main demands: the government to issue a law or emergency regulation (Perppu) on online transportation; a fairer revenue-sharing scheme (90% for drivers, 10% for app operators); standardized delivery fares for goods and food; investigative audits of app operators; and the removal of systems considered to undermine driver solidarity—such as Aceng, Slot, Hub, and Multi Order.
Responding to this, the government said: “As the regulator in the transportation sector, we need to gather various information and data to formulate a transportation policy that is fair and sustainable,” stated Director General of Land Transportation, Aan Suhanan.
Transportation policy analyst Azar Tigor Nainggolan stressed the need for a clearer legal foundation for online transportation to ensure fair and sustainable regulations. “The rules should cover the regulation of motorcycles as public transport, the regulation of the online transportation business model, all stakeholders in the online transport ecosystem—drivers, public transport companies, and the app companies themselves,” he explained.

Grab Indonesia, through its Chief of Public Affairs, Tirza Munusamy, said it respects drivers’ rights to express aspirations in an orderly manner. “Grab’s operations remain active. Our system automatically redirects orders to other partners if adjustments occur,” she told SUAR (July 22).
In contrast, online transport service provider Maxim warned the government of risks tied to fare hikes. According to Maxim Indonesia’s Government Relation Specialist, Muhammad Rafi Assagaf, the planned 8%–15% increase for two-wheel fleets should be thoroughly reviewed. “We believe the planned fare hike must be comprehensively re-examined with the involvement of all stakeholders,” Rafi said in an official statement, Wednesday (July 2).

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Carbon Market and Sustainable Economy

Indonesia’s carbon market holds significant potential to become the backbone of sustainable development. However, this requires strengthening the capabilities of all stakeholders and fostering close collaboration among the private sector, government, and civil society.
Chief Operating Officer (COO) of the Indonesian Business Council (IBC), William Sabandar, stated that IBC was established with sustainability as one of its core pillars. He highlighted a communication gap across sectors, where government initiatives often proceed independently without much discussion with the private sector or civil society.
Carbon expert and practitioner Paul Butar Butar raised concerns over the quality of carbon credits, a growing global issue. He referred to a Guardian report that accused several projects of “overestimating” emission reduction claims, which has led to a sharp decline in demand for carbon credits, particularly for older projects.
Buyers are now seeking “high-quality carbon credits” generated through detailed processes that also take social aspects into account.

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The Multiplier Effect of the Nickel Industry

The trend of realized investment in downstream industries in Indonesia continues to rise. One commodity that attracts significant investor interest is nickel.
In 2024, realized downstream nickel investment reached Rp153.2 trillion. By the first quarter of 2025, the figure had already recorded Rp47.82 trillion—the largest compared to other mineral downstream investments such as copper, bauxite, steel, tin, and others.
The nickel industry has become one of the most attractive investment sectors, with a considerable multiplier effect. According to a July report from the Indonesian Nickel Miners Association, from 2020 through the third quarter of 2024, total realized investment in this industry amounted to Rp514.8 trillion.
Currently, 194 companies are engaged in the sector, employing around 193,000 workers. Over the same period, production capacity of this key component for electric vehicle battery manufacturing reached 44,959 KTPA.

Read more here.

Explore Bangka Belitung 2025: The Bank Indonesia Representative Office for Bangka Belitung Province is hosting Explore Babel 2025, featuring culinary tourism, MSME (micro, small, and medium enterprise) products, and entertainment—the largest event of its kind in the region. The event’s highlight will be at Taman Merdeka Square in Pangkalpinang from July 25 to 27, 2025.

Bekasi Baraka 2025 MSME Expo: Bekasi City Government, in partnership with PT DAC Event, will stage the #BekasiBarakaMarket MSME exhibition from July 25 to 27, 2025, at Revo Mall Bekasi. The expo aims to promote halal products and boost local economic growth by involving small and medium entrepreneurs and the local community.