Pursuing Growth in the Remaining 5 Months of 2025

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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.

Projections from Several International Institutions: Indonesia's Economy Will Slow Down

Today, Tuesday (5/8/2025), the Central Statistics Agency (BPS) plans to release the second quarter 2025 economic growth achievement. Several international institutions such as the IMF, World Bank, ADB, and OECD have issued 2025 and 2026 economic forecast reports. Their reports share a common thread: the Indonesian economy is expected to slow down.

Despite various forecasts from international institutions, Minister of Finance Sri Mulyani said that her party is optimistic that Indonesia's economic growth in the second quarter of 2025 will remain maintained to become the foundation for the economy in 2025 to grow at around 5.0. Positive consumption and purchasing power, as well as resilient business activities, are also supported by the role of the state budget in carrying out allocation, distribution, and stabilization functions.
Executive Director of the Center of Reform on Economics (CORE) Mohammad Faisal said that his party projects Indonesia's economic growth in the second quarter of 2025 to slow down to the range of 4.7 - 4.8%, down from 4.87% in the first quarter. Throughout 2025, growth is expected to be at the level of 4.6 - 4.8%.

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Banking Sector Expected to Remain Stable Until the End of the Year

Amid various pressures of global uncertainty and various indications of domestic economic slowdown, the Financial Services Authority (OJK) is optimistic that the banking sector will continue to show stable performance.
National banking credit disbursement reached IDR 8,060 trillion in June 2025, or grew 7.77% annually. Meanwhile, Third Party Funds (DPK) reached IDR 9,392 trillion, growing 6.96% annually.
Bank capital is sufficient, as reflected in the Capital Adequacy Ratio (CAR) in June 2025, which is at 25.81%. The risk profile is also maintained with the Gross Non Performing Loan (NPL) in June 2025 at 2.22%, a decrease compared to May 2025 which was at 2.29%.

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Philanthropic Entrepreneurs and the Success Story of Sigi Farmers

Chairman of the Advisory Board of the Indonesian Philanthropy Association Fransiscus Welirang said that the business world is not only about making profits but can also contribute to development in the surrounding community. This behavior is commonly referred to as philanthropy.
Minister of National Development Planning/National Development Planning Agency (Bappenas) Rachmat Pambudy said that the business world has the financial capacity and reach to participate in empowering sustainable development.
One of the success stories of business philanthropy is the synergy of three collaborations between PT. Syngenta Seed Indonesia and Wahana Visi Indonesia (WVI) succeeded in changing the fate of thousands of cocoa farmers who had slumped. Through a partnership program since 2018, they introduced corn cultivation as a solution to increase income and rebuild the local economy.

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Hopes of Entering the "Global Supply Chain" Through European Free Trade

The government is targeting to agree on the IEU - CEPA agreement by the end of September. It is estimated that after the legal process and domestic ratification run for 6 months, the agreement will be signed no later than the second - third quarter of 2026.
Deputy Chairman for Trade and Foreign Agreements of the Indonesian Chamber of Commerce and Industry (KADIN), Pahala Mansuri, said that this cooperation agreement will pave the way for Indonesia to reduce its dependence on Indonesian exports to the Chinese market.
The IEU–CEPA trade agreement not only opens the way for textiles and furniture, but also low-carbon products such as steel. The domestic steel industry now has the opportunity to penetrate the European market, which is increasingly demanding sustainability standards, especially from the automotive, construction and electronics sectors.

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International Passenger Niche for Indonesian Airlines

The domestic aviation industry had slumped due to global mobility restrictions to stem the spread of the corona virus. In 2020, the number of international airline passengers arriving–departing–transiting at Indonesian airports was recorded at only around 7.27 million people. This number fell 81% compared to 2019, which was recorded at 37.3 million people.
The deepest fall was recorded in 2021, when the number of international passengers arriving–departing–transiting was only 1.37 million people. However, after that the aviation industry began to recover as mobility restrictions were lifted.
During the first five months of 2025, the number of international airline passengers has reached 16.17 million people. The addition of new players on international routes, especially by domestic airlines, will boost the number of international passengers arriving–departing–transiting at Indonesian airports. This will have a major impact on the domestic economy, especially the tourism sector.

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BPS Releases Economic Growth: The Central Statistics Agency (BPS) will release Indonesian economic growth data related to the Gross Domestic Product (GDP) for the second quarter on Tuesday, August 5, 2025, at the BPS building. The BPS release regarding Indonesia's economic growth includes national GDP growth, GDP growth by business field and expenditure, and GDP contribution by region. These results serve as a reference and impact market sentiment, investment decisions, and Bank Indonesia's monetary policy.

INDEF National Seminar on Gold Banks: The Center for Sharia Economic Development (CSED) INDEF, in collaboration with Islamic-based universities, is organizing a national seminar on the concept of gold banks (Bullion Bank). The seminar will be held on Tuesday, August 5, 2025, at 08.00 WIB at Paramadina University, South Jakarta. The seminar will be attended by various speakers, including the 13th Vice President of the Republic of Indonesia, the Chairman of Commission XI of the DPR RI, CSED INDEF researchers, representatives from the OJK, LPS, and many more.