New Ministers and the Challenge of Convincing the Market

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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.

Finance Minister Change and the "Roller Coaster" of Market Response

In Indonesia's history, the change of Finance Minister has been responded to variously by financial market participants. There are times when the market responds positively to the change of the country's fiscal general. However, there are times when the market responds otherwise. Flashback to 11 years ago, precisely on September 27, 2014, the Composite Stock Price Index (JCI) closed down 32.95 points or 0.65% at 5,040.11. This weakening coincided with the inauguration of the Working Cabinet of President Joko Widodo (Jokowi). At that time the position of Minister of Finance was entrusted to Bambang P.S Brodjonegoro.
Almost two years later, on July 27, 2016, the JCI strengthened 0.96% to 5,274. At that time Jokowi overhauled the formation of his economic ministers and included the name Sri Mulyani as the country's fiscal general. Observers and analysts think Mulyani can improve the Indonesian economy.
Mulyani's welcomed arrival has now come to a sad end. About nine years later, Mulyani was replaced by Purbaya Yudhi Sadewa on Monday (8/9/2025) by President Prabowo Subianto. The market immediately responded coldly - marked by the JCI falling 1.28% or 100.49 points to 7,766.84 due to the sale of a number of stocks on Monday (8/9/2025).

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Ministers Change, Red and White Cooperative Runs Smoothly

Ferry Juliantono officially moved up the ladder to become the new Minister of Cooperatives on Tuesday (9/9/2025). He replaces Budie Arie Setiadi who was affected by the cabinet reshuffle on September 8, 2025.
In his speech, in addition to expressing his appreciation, Ferry - who previously served as deputy minister - ensured that he would continue the baton and maintain the existing priority programs including the Red and White Village Cooperative (Kopdes Merah Putih) program. "Good legacy programs will be maintained and their performance will be improved," Ferry said after the handover process at the Ministry of Cooperatives Auditorium, Tuesday afternoon (9/9/2025).

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"Working together" helps UMKM penetrate the global market

All stakeholders, from the government, online trading platform providers, to the financial services sector, can work together to contribute to helping micro, small and medium enterprisesUMKM) to enter the global market. Various challenges experienced by UMKM, ranging from limited human resource capacity to market access, can be assisted by all stakeholders. Multisectoral synergy is the main guide for UMKM players to take advantage of this opportunity and transform their business into an export-oriented one.

Financial issues can be resolved by the involvement of financial institutions, the Financial Services Authority (OJK), and Bank Indonesia (BI). E-commerce platform companies can also be involved in helping UMKM empowerment programs.

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Opportunity Niche from Gulf Countries

Indonesia continues to add to its list of trade agreements with countries in the world. This time, Indonesia is ready to finalize a trade agreement with Gulf countries titled the Indonesia-Gulf Cooperation Council (GCC) Free Trade Agreement (I-GCC FTA). This agreement is targeted to be completed by the end of 2025, as the negotiation process has entered the third round. The I-GCC FTA agreement is a golden opportunity for Indonesia to strengthen export market diversification.
The six member countries of the Gulf Cooperation Council (GCC) are Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain and Oman. With the I-GCC FTA, Indonesia has an alternative export market, not only dependent on China and the United States.

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Bank Deposits Increase, People are Careful to Spend Funds

In the midst of a situation of declining purchasing power, Bank Indonesia data shows that the amount of public deposits in banks during the January-July 2025 period tends to increase. This increase was supported by the growing ability of the upper class and corporations to save. The Bank Indonesia (BI) report shows that the amount of public deposits in rupiah at commercial banks increased by 5.25%. Namely, from IDR 7,253 trillion in January to reach IDR 7,634 trillion in July.

This increase was driven by increases in all types of deposits, including current accounts, savings accounts, and time deposits. In fact, time deposits showed quite high growth, from IDR 2,762 trillion (January) to IDR 2,916 trillion (July). This could be a reflection of the public's more cautious strategy in choosing deposit instruments that provide more certain returns.

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Sustainability Action for the Future Economy (SAFE) 2025: Katadata and Iluni UI collaborate to present Sustainability Action for the Future Economy (SAFE) 2025 which will be held on September 10-11, 2025, 09.00-18.00 WIB, at Kempinski Grand Ballroom, Jakarta. This strategic forum is a meeting place for leaders, experts, and businesses across sectors. Through the forum with the theme "Green for Resilience" together various figures formulate solutions towards aresilientand sustainable green economy.

Indonesia Energy & Engineering (IEE) 2025: Southeast Asia's largest industry exhibition series organized for the energy and engineering technology sectors is being held in two sessions. September 10-13, 2025 and September 17-20, 2025 at the Jakarta International Expo, Kemayoran, Jakarta. The event will bring together leading experts, companies, and professionals. The IEE Series includes other important exhibitions, such as Construction Indonesia, Concrete Show SEA, Building Systems & Automation Indonesia, and Mining Indonesia. The event is a unique platform for networking, knowledge sharing, and business development.