Boost State Expenditure, Encourage 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.

To Pursue Growth, State Expenditure Must Be Accelerated with the Right Steps

Towards the last quarter of 2025, the Ministry of Finance revealed that the absorption of state spending has only reached half of the APBN outlook . In fact, there are still growth targets that must be pursued in the next three months. Acceleration of state spending is important, although it must be done carefully and precisely target priority programs.
As of 31 August 2025, the realization of state revenue has only reached IDR 1,638.7 trillion or 57.2% of the 2025 State Budget outlook . Meanwhile, state spending realized in the same period has only reached IDR 1,960.3 trillion or 55.6% of the 2025 State Budget outlook . The deficit amounted to IDR 321.6 trillion or 1.35% of GDP.

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Following BI Rate Decline, LPS Rate also Decreases

Following Bank Indonesia's (BI) move to lower the benchmark interest rate (BI Rate) by 25 basis points at the September BI Board of Governors Meeting (RDG) on Thursday last week, the Deposit Insurance Corporation (LPS) also lowered its guarantee interest rate (LPS Rate). On Monday (22/9/2025), LPS decided to cut the guaranteed interest rate (TBP) by 25 basis points (bps). Namely, to 3.50% for rupiah deposits at commercial banks, foreign exchange (forex) deposits at commercial banks at 2.00%, and rupiah deposits at people's economic banks (BPR) at 6.00%.
The establishment of this TBP is based on the relatively maintained performance of the domestic economy. However, it needs to be strengthened, especially in terms of consumption and production in a more balanced manner.

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Tips for the Halal Industry to Capture the Potential of US $ 2 Trillion in the Global Market

Indonesia is not only the country with the largest Muslim population, but also the center of halal-labeled food, fashion, and tourism. But to become the leader of the world halal industry with a global trade value of more than US$2 trillion is still a challenge.
The contribution of the halal sector to the Indonesian economy continues to increase. In 2024, the halal industry contributed to economic growth of 5.03% with an export value of US$ 64 billion.

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Geothermal Business Actors Need Partisanship to Run Investment

Indonesia is known to have the largest geothermal potential on earth, at 23.74 gigawatts (GW). However, as stated by the Ministry of Energy and Mineral Resources (ESDM), only 2.7 gigawatts are currently optimized. Companies continue to expand to fulfill this potential.
In the 2025-2034 Electricity Supply Business Plan (RUPTL), Indonesia is targeted to have an additional 69.5 GW of power generation capacity. Of this amount, 5.2 GW comes from geothermal. The investment needs for additional power generation capacity for 2025-2034 reached IDR 2,967 trillion. Of this amount, investment from PLN power plants amounted to IDR 567.6 trillion.

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Younger Generation is also Aware of Preparing Retirement Funds

OCBC 's Financial Fitness 2025 research report indicates a decline in the financial health of Indonesians. However, the research, which targets 25-35 year olds, sees a trend towards long-term investment and pension fund preparation as a means of future stability.
The research, conducted in July-August, did show a slowdown in the financial health achievements of Indonesians in general. The score declined slightly: from 41.25 to 40.60. This decline was triggered by crucial indicators, such as, declining ability to spend beyond daily needs, reduced routine saving habits, and weakening emergency fund resilience.

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Publication of the August 2025 Money in Circulation Development Report: Through this routine agenda, Bank Indonesia (BI) will release statistical data outlining the position and development of money in circulation in Indonesia. The data release, scheduled for Tuesday, September 23, 2025, will be published online and free of charge through Bank Indonesia's official website.

BAREKSA BUSINESS FORUM 2025: Taking the theme"Build Big. Scale Smart. Outlast the Chaos", this event aims to provide insights and practical strategies for businesses to survive, thrive, and identify opportunities amidst rapid global economic change. The event will be held on Tuesday, September 23, 2025, at 10:00-16:00 WIB, at Pantai Indah Kapuk, Jakarta. The forum will be filled by leading experts and practitioners, such as Kang Deni Ridwan, Rivan Kurniawan, Sucor Asset Management, Albertus Axel, Syailendra Mutual Fund, Holika Holika Indonesia, and We Are Treasury. For more information on how to join the event and other series, you can directly access Bareksa's Instagram social media.

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