Managing Regional Fiscal, Labor Demos, and Biodiesel Exports

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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.

Limited Fiscal, Regional Heads Need to be Efficient and Creative in Finding Income

With regional transfers falling to Rp 650 trillion in the 2026 Draft State Budget (RAPBN) compared to Rp 864 trillion this year, President Prabowo Subianto and Minister of Home Affairs Tito Karnavian have instructed all district governments to be more creative in finding local revenue. On the expenditure side, district governments are also required to be more efficient, and spend on things that are more targeted.

Minister of Home Affairs Tito Karnavian gave the example of Lahat Regent Bursah Zarnubi who managed to make budget efficiency up to Rp 462 billion. Then the savings were allocated for irrigation development that could irrigate 80,000 hectares of land.
In addition, Tito encouraged district governments to be creative in finding other ways to generate revenue. The goal is that districts do not always have to rely on the central budget or choose the shortcut of increasing Land and Building Tax (PBB). Tito gave the example of Badung Regency, whose budget posture is 90% derived from its original revenue. This means that only 10% of its budget comes from the center.

Read more here.

Clear and Consistent Regulations, the Backing of Employers to Guarantee Workers' Welfare

An increase in the minimum wage has again become one of the demands of labor demonstrations. The demand to increase wages by 8.5% to 10% was raised in a mass demonstration of workers organized by the Confederation of Indonesian Trade Unions (KSPI) in front of the main gate of the DPR Building, Jalan Gatot Subroto, Jakarta, Thursday (28/08/2025).

Chairman of the Manpower Division of the Indonesian Employers Association (Apindo) Bob Azam regretted that the mass demands came from factions of trade unions and were not based on knowledge of the wage roadmap agreed upon by representatives of employers, workers, and the government who are members of the National Wage Council (Depenas). "The minimum wage is the lowest wage, not the actual wage. We must build a wage ecosystem, with minimum wages adjusted to the inflation rate, not used as actual wages, and regulated by bipartite agreements of company unions and management. Not unions outside of it," Bob concluded.

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Ensure Victory at the WTO Becomes a Guarantee of Ease of Biodiesel Exports to Europe

Indonesia's victory in the biodiesel trade dispute against the European Union at the World Trade Organization (WTO) illustrates that Indonesia has never violated the principle of sustainable economy. The hope is that in the future, palm oil products, biodiesel, and their derivatives can be guaranteed for export to Europe. "This victory gives a positive signal that there will be no more debates about Indonesian palm oil products in the future," economic observer from the Institute for Development of Economics and Finance (Indef) Eko Listiyanto told SUAR in Jakarta (28/8/2025).

The WTO decision does open up new market opportunities for Indonesian biodiesel in Europe. However, currently the main focus of the government and industry is still on domestic renewable energy programs. Such as the implementation of B40, or 40 percent biodiesel blend in diesel fuel, and the planned B50 trial.

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As the main target of cyberattacks, this is how banks maintain digital security

Cybersecurity Economics for Emerging Markets research released by the World Bank in 2024 shows that cyberattacks globally are dominated by financial motives. A total of 73.9% of publicly disclosed cyberattack incidents between 2014 and 2023 occurred due to financial motives, far surpassing other motives such as politics or espionage. In developing countries, financially motivated data exploitation cases accounted for 41.1%.
The banking sector anticipates cyber attacks and strengthens digital security by increasing information technology (IT) capacity, preparing a secure operational system, and educating all stakeholders on cybercrime prevention.

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E-Commerce Ecosystem Spurs Millennial and Gen-Z Consumption

In the midst of a decline in purchasing power, e-commerce, which is the backbone of Indonesia's digital economy, is predicted to continue to grow until 2030. The growth of consumption through e-commerce is driven by generation Z and millennials who make up the largest portion (around 60%) of internet users in Indonesia (APJII, 2024).
Statista Market Insight report shows that revenue in Indonesia's e-commerce market is projected to reach US$41.97 billion by 2025. The value is expected to continue to grow at an annual growth rate (CAGR 2025-2030) of 7.75%, reaching USD $60.95 billion by 2030.

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Jakarta Halal Expo and Conference 2025 (JHEC): One of the largest halal exhibitions in Indonesia is organized by PT Fajar Kinarya Pratama. Scheduled to take place August 29-August 31, 2025 at Hall 9, ICE BSD City, JHEC 2025 is a strategic platform for halal industry players to showcase products and innovations, ranging from food, beverages, cosmetics, fashion, to Islamic financial products on an international scale. This activity is open to the public and can be attended by anyone interested in the halal industry ecosystem. Prospective visitors can register online to get an entrance ticket. More complete information can access the website https://jakartahalalexpo.com/#event.

August 2025 Import and Export Foreign Trade Statistics: The Central Bureau of Statistics (BPS) plans to release the August 2025 Export and Import Foreign Trade Statistics Report. This publication is a monthly agenda related to the publication of important data that is awaited by economists, entrepreneurs, and policy makers, especially related to the export and import sector. This report is usually released monthly by BPS through the official page of the BPS website. In addition, simultaneously on August 29, 2025, BPS also released several other reports related to annual plantation statistics and also Indonesian telecommunication statistics in 2024.