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.
Happy farmers, subsidized fertilizer price drops 20%
- The government on Wednesday (22/10/2025) officially lowered the highest retail price (HET) of subsidized fertilizers by 20%, making this policy the first time in history since the program was established decades ago.
- No wonder a number of farmer associations welcomed this decision and called it a concrete solution in the midst of farmers' difficulties. The regulation, which takes effect from today, is carried out without increasing the subsidy budget from the state budget, but through industrial efficiency and improving the management of national fertilizer distribution.
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Encourage Credit Acceleration, BI Keeps Policy Rate and Prepares Incentives
- Bank Indonesia's October 2025 Board of Governors Meeting decided to keep the benchmark interest rate at 4.75%, the deposit facility rate at 3.75%, and the lending facility rate at 5.5%. After lowering the benchmark interest rate by 150 basis points (bps) between September 2024 and September 2025, Bank Indonesia (BI) maintained the BI Rate at 4.75% at the October 2025 BI Board of Governors Meeting (RDG).
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Government Intervention and Restructuring Offered as Solutions for Whoosh Debt Settlement
- The investment in the construction of the Jakarta-Bandung High Speed Train or commonly called Whoosh penetrated around 7.27 billion US dollars or Rp 120.38 trillion. Of the total investment, around 75% is financed through loans from the China Development Bank (CDB), with interest of 2 percent per year. Whoosh's development debt is carried out with a fixed interest scheme for the first 40 years. KCJB's interest rate is much higher than the Japanese proposal, which offers 0.1% per year. In addition, the total debt has not yet calculated the additional withdrawal of new loans by Kereta Cepat Indonesia China (KCIC) due to cost overruns that reached USD 1.2 billion, the additional debt interest is also higher, which is above 3% per year.
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Government Budgets IDR 8 Trillion to Strengthen Welding and Maintenance Job Training Program
- To accelerate the alleviation of unemployment and poverty, the government has budgeted Rp 8 trillion to strengthen job training programs for welding and hospitality. The strengthening of vocational training units is expected to create skilled workers who are ready to work both at home and abroad. Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government is preparing strategic steps to strengthen labor training programs in welding and hospitality. According to him, the President has given directions in a cabinet meeting to prepare at least 500,000 workers in the two fields.
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Electricity Consumption of Industry and Business Sector as a Barometer of Growth
- The national electricity consumption trend continues to increase by an average of 6% per year. This increase is a barometer of economic recovery, especially in the industrial and business sectors that drive economic growth. National electricity consumption in the last five years has shown an increase. Data from the Directorate General of Electricity of the Ministry of Energy and Mineral Resources shows that total electricity consumption has consistently increased, from 243.58 TWh in 2020 to 306.22 TWh in 2024. This increase is in line with the growing number of customers reaching 92.88 million in 2024, up from around 79 million customers in 2020.
- PT PLN's report (6/9/2025) noted that during the first semester of 2025, it managed to book sales of 155.62 TWh or grew by 4.36% compared to the same period in the previous year. Until the end of the year, consumption is expected to continue to grow with an average power consumption growth rate of 5-6% per year. This growth indicates the higher level of electrification and economic activity across the country.
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The Accelerating Capital Resources for Medium Enterprises (ACCES) program is an initiative officially launched by the Ministry of Cooperatives and Small and Medium Enterprises ( UMKM Ministry) to strengthen access to innovative and inclusive financing for medium-sized entrepreneurs. The program launch will be coupled with an Innovative Financing Education Seminar that will feature experts from various financial and business institutions, including OJK, BRI, Restock, Bizhare, Arunami, and Jenna & Kaia. The event is scheduled for Thursday, October 23, 2025, from 08.00-16.00 WIB, and will be held online through the Zoom platform which can be accessed by participants through the registration link located on the Ministry of UMKM's Instagram social media.
The Indonesia Pension Fund Summit (IPFS) 2025 is an important conference organized by the Financial Services Authority (OJK) in collaboration with the Ministry of Finance and the Indonesia-Australia Partnership Program for the Economy (PROSPERA). This event will be held offline on Thursday, October 23, 2025 starting at 08.30 WIB until completion at Tentrem Hotel, South Tangerang. The conference will present keynote speakers including Mahendra Siregar (Chairman of DK OJK), Ogi Prastomiyono (Chief Executive Officer of OJK Supervisor), Thomas Djiwandono (Deputy Minister of Finance), and H. E. Rod Brazier (Australian Ambassador to Indonesia). Further information can be accessed through the official website of the Indonesia Pension Fund Summit (IPFS) 2025.
"The man who defends everything at once everywhere, actually defends nothing." (Sun Tzu-Chinese Strategist)
Have a good day, Chief.
Team SUAR
