Optimize 2026 State Budget, Credit from Placement IDR 200 Trillion, Waste Power Project

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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.

No More Budget Cuts, Government Optimizes Expenditure and Financing

The 2026 State Budget is estimated to have a deficit of IDR 689.1 trillion or equivalent to 2.68% of GDP in 2026. The Ministry of Finance is racking its brains to still be able to finance the country's spending needs.

Learning from the negative impact of government spending efficiency on economic growth, the Ministry of Finance changed its approach when preparing the 2026 State Budget (APBN). Instead of cutting the budgets of ministries/institutions on a large scale, the government chose to optimize the issuance of Government Securities (SBN) and the application of the National Socio-Economic Single Data (DTSEN) to implement priority spending so that it is right on target.

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IDR 200 Trillion Fund Placement in Himbara Starts to Be Distributed

The placement of IDR 200 trillion of government funds in the Association of State-Owned Banks (Himbara) has begun to be channeled. These additional funds have the potential to significantly increase banking liquidity, providing greater space for banks to extend credit. As of the end of September 2025, Bank Mandiri has disbursed Rp 34.5 trillion or equivalent to 63% of the total funds provided by the government. Credit is channeled to strategic sectors, such as manufacturing, agriculture & food, and new renewable energy. Meanwhile, BTN is processing the additional liquidity to reduce mortgage interest rates so that they are more affordable.

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In order to reduce fuel imports, Pertamina is ready to produce E10 gasoline

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia encourages the mandatory plan to use 10% ethanol (E10) as a mixture of domestic fuel oil (BBM). This policy is carried out in order to reduce the amount of fuel imports. This is because, based on reports as of June 2025, Indonesia imports gasoline up to 61.73% of national needs.
Currently, Pertamina already has a biofuel blend product, Pertamax Green 95, which contains 5% bioethanol from molasses. Pertamina's Vice President of Corporate Communication Fadjar Djoko Santoso emphasized that his company supports and is ready to implement the mandatory plan to blend ethanol for gasoline up to 10%.

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Waste to Electricity, Danantara's New Business Worth Rp 91 Trillion

CEO of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), Rosan Roeslani, said the total investment in waste-to-energy (WtE) projects could reach Rp 91 trillion for 33 regions in Indonesia. This figure is calculated from the needs of each city, which on average produces one thousand tons of waste per day. But in some areas, the processing capacity can be much larger. One waste-to-energy processing facility (PSEL) requires an investment of around Rp 2 trillion-Rp 3 trillion and can process up to 1,000 tons of waste per day. In Jakarta, for example, the processing potential can reach three to four points due to the high volume of waste. Jakarta produces around 8,000 tons of waste per day. If there is no significant change, the pile could reach 55 million tons, equivalent to 16,500 football fields.

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Increased Stock Market Capitalization Signals Investor Confidence Recovery

The government is trying to restore investor confidence in the financial markets. The reason is that the Prabowo administration has only been running for 6 months, the Composite Stock Price Index (CSPI) and market capitalization have fallen quite deeply. On April 8, 2025, the market cap shrank to Rp 10,270 trillion when the JCI fell to 5,967.99. A gradual recovery took place towards the one-year anniversary of the government.
Now, the Indonesian stock market is rallying again. The market capitalization value of stocks on the Indonesia Stock Exchange (IDX) is slowly rebounding. Last week, the market capitalization value reached more than Rp 15,000 trillion, with the JCI level above 8,200.

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The Financial Services Authority (OJK) will launch the Pawnshop Development and Strengthening Roadmap 2025-2030. As an effort to develop and strengthen the pawnshop industry, OJK in collaboration with relevant stakeholders will launch the roadmap on Monday (13/10/2025) at 09.00 WIB, online through a zoom meeting. Present as speakers include Chairman of the OJK Board of Commissioners Mahendra Siregar, Chief Executive of the Supervisor of Financing Institutions, Venture Capital Companies, MFIs, Other Financial Services Institutions OJK Agusman, Chairman of the Indonesian Pawn Company Association Damar Latri Setiawan. Information related to how to participate online can be accessed through OJK's Instagram social media.

Indonesia Sustainable Energy Week Goes Regional (ISEWGR) 2025 comes to South Kalimantan to open a dialog on energy transition. The first day of the event took place in Samarinda, East Kalimantan, on Monday, October 13, 2025. In addition to national energy transition planning, ISEWGR 2025 focuses on regional-scale energy transition planning. The event will review the planning, challenges, and crucial steps of the energy transition, whose goal is not only to provide environmentally friendly energy, but also to bring social and economic benefits. In addition to being held offline at Mercure Samarinda, East Kalimantan, this dialog is also broadcast live through Bappenas' YouTube Channel. Information regarding how to participate can be directly accessed through Energyhub's Instagram social media.