Tax Boost Without Burdening Businesses and Startup Scandals

Good morning, Chief.
Here are the key developments shaping the business landscape today, curated by the SUAR Team.

Raising IDR 524 Trillion in Tax Revenue Without Burdening Businesses

A report titled “Respectfully, Public Officials: Don’t Collect Taxes Like Hunting in a Zoo” released by the Center of Economic and Law Studies (Celios) revealed that, with the right tax instruments, the government could increase annual revenues by up to IDR 524 trillion—without placing additional strain on businesses and society.

Celios Director of Public Policy Media Wahyudi Askar emphasized that the figure is more than just a technical calculation; it offers a strategic solution to break the deadlock in budget discussions, which have long focused only on spending cuts. “The numbers are technically sound, but not politically,” he said.
Indonesian Employers Association (Apindo) Economic Policy Analyst Ajib Hamdani added that with the current fiscal posture, businesses expect the government to accelerate tax restitutions, expand the Government-Borne Value Added Tax (PPN DTP), and extend tax relaxations for MSMEs as part of a pro-growth fiscal policy.

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The Vital Role of the Financing Industry and MFIs in Driving the People’s Economy

Agusman, Chief Executive for the Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services (PVML), said the Financial Services Authority (OJK) is using this inaugural flagship program to expand access to financing—especially for productive sectors and MSMEs—seen as the backbone of Indonesia’s economy.
Burhan, Chairman of the Association of Microfinance Institutions (Aslindo), added that microfinance institutions (LKM) and Islamic microfinance institutions (LKMS) play a central role in meeting the financial needs of rural communities, particularly those without access to conventional banking (the “unbankable”).

In addition, there are other financial institutions—such as finance companies, fintech firms, and pawnshops—each serving its own role and market segment.

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eFishery & Investree Scandals Don’t Deter Investor Interest

Former eFishery CEO and founder Gibran Huzaifah is suspected of manipulating the company’s financial statements by inflating revenue. The aquaculture startup, founded in October 2013, had been a rising star and reached unicorn status—valued at over US$1 billion—in early 2023.

Investree’s troubles became public amid a surge in non-performing loans. The company, co-founded by Adrian Gunadi, recorded unhealthy credit growth. Majority shareholder Investree Singapore Pte Ltd removed Gunadi as CEO, and Indonesia’s Financial Services Authority (OJK) revoked Investree’s business license on 21 October 2024. Gunadi, now a fugitive, has been on a red-notice wanted list since 7 February 2025.
Eddi Danusaputro, Chairman of the Indonesian Venture Capital Association for Startups (Amvesindo), said Indonesia remains attractive for startups, supported by stable economic growth and widespread technology adoption. While the alleged eFishery fraud has dented sentiment, he emphasized it involves a single company, not the entire startup ecosystem.

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Tapping Opportunities in the Indonesia–Peru CEPA

Djatmiko Bris Witjaksono, Director General of International Trade Negotiations (PPI) at the Ministry of Trade, said the pact will grant preferential access to more than 90% of tariff lines in both countries—an expected leap to push bilateral trade toward the ambitious USD 5 billion target.
Though labeled “Comprehensive,” the Indonesia–Peru CEPA (IP-CEPA) will initially focus on trade in goods, using an incremental approach similar to the Chile negotiations before expanding to services and investment. The first stage covers tariff elimination or reduction, rules of origin, customs procedures, trade safeguards, and disciplines on technical barriers to trade (TBT) as well as sanitary and phytosanitary (SPS) standards. After implementation begins, the two countries plan to proceed to negotiations on services, investment, intellectual property, and the digital economy.

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Provinces Outside Java Show More Consistent Growth

Indonesia’s statistics agency (BPS) announced in early August that national GDP grew 5.12% in Q2 2025. By region, Java—which contributes 56.94% of national GDP—expanded 5.24%; Sumatra (22.20% share) grew 4.96%; Bali–Nusa Tenggara 3.73%; Kalimantan 4.95%; Sulawesi 5.83%; and Maluku–Papua 3.33%.
Quarter-on-quarter (Q1 to Q2 2025), Central Papua, Lampung, and South Kalimantan rose 14.15%, 9.33%, and 8.10%, respectively. Over the past five years, these three provinces have shown steadily improving growth. By contrast, North Maluku, Central Sulawesi, and Papua experienced a spike in 2021 followed by declines through 2024.

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Indonesia International Smart City Expo & Forum 2025 (IISMEX): The event will take place at Jakarta International Expo (JIExpo) Kemayoran, Jakarta, on 13–15 August 2025. It is a key collaboration platform attended by 28 ministries and government agencies, as well as industry players. As one of Indonesia’s largest technology, ICT, and IoT exhibitions, IISMEX 2025 connects smart-city solution providers from multiple countries with decision-makers— including ministry and local-authority representatives, CEOs, managers, architects, engineers, and property developers. The forum features a wide range of programs. For complete information, visit IISMEX’s social media channels or the website: https://iismex.com/.

IPXpose Indonesia 2025: Organized by the Directorate General of Intellectual Property (DJKI), the event will be held at Smesco Jakarta on 13–16 August 2025. It is a comprehensive program featuring an exhibition, executive forum, workshops, business matching, contests, an intellectual property (IP) clinic, and an awards ceremony. The event targets innovators, business owners, investors, and the broader public interested in exploring and leveraging IP. Free ticket information and the full agenda are available at ipxpose.dgip.go.id.