Prepare for Trump's Tariff War 2.0

Good morning Chief...

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.

Trump 2.0 Tariffs Take Effect on August 7, Check Indonesia's Opportunities and Challenges

US President Donald Trump set new import tariffs for more than 68 countries that will take effect on August 7, 2025, on Thursday (31/7/2025) Washington DC time or Friday (1/8/2025) afternoon WIB. Indonesia was rewarded with a 19% tariff. Meanwhile, competing countries such as Vietnam are subject to tariffs of 20% and Thailand 19%.
Fithra Faisal Hastiadi, Spokesperson for the Presidential Communications Office for Indonesian Economic Affairs, said that the tariff setting is a challenge but also an opportunity. "In every difficulty there is an opportunity," he said. For example, the US plan to reduce soybean meal tariffs to 0% could lower feed prices, helping chicken farmers in Indonesia. Another example, if the US hits Chinese products with high tariffs, Indonesia has the opportunity to fill market niches, especially products that do not directly compete with the US.
Paramadina University economist Wijayanto Samirin views the 19% figure for Indonesia as a good start. The next key is in the details of the negotiations, namely by reading which products can be negotiated further, which sectors are the most sensitive, and how to maintain competitiveness compared to neighboring countries.

Read more here.

Inflation Still Under Control and On Target

The Central Statistics Agency (BPS) reported an inflation rate of 2.37% year-on-year in July 2025. This inflation rate is still within the target range for inflation control this year set by the government and Bank Indonesia (BI), which is 1.5%–3.5%.
According to BPS data, the main commodities contributing to the annual inflation in July were jewelry at 0.46%; shallots at 0.18%; tomatoes at 0.16%; rice at 0.15%; and water tariffs from the Water Supply Company (PAM).
Based on the forming groups, the core inflation position in July 2025 was at 2.32% on an annual basis. The amount of inflation in July 2025 in thevolatile foods group reached 3.82% on an annual basis. Meanwhile, inflation in July 2025 from theadministered price group reached 1.34% on an annual basis.

Read more here.

Blocking and Opening Accounts Confuses Businesses and Customers

After reaping debates and conversations in the public space and social media, the Financial Transaction Reports and Analysis Center (PPATK) finally unblocked 28 million dormant or sleeping accounts on Thursday (31/7/2025).
Indeed, the blocking of dormant accounts is written in the legislation. Quoting Law (UU) Number 10 of 1998 concerning Amendments to Law 7/1992 concerning Banking, customer accounts can be categorized as dormant if there is no transaction activity within a certain period of time determined by each bank. Usually for 6 months or 12 consecutive months.

Provisions regarding dormant accounts are generally regulated in the bank's internal policies and refer to the principles of prudence and consumer protection. Blocking by PPATK of dormant accounts can only be done as long as there is a clear legal basis. Namely, in the form of suspicion of account involvement in criminal acts as regulated in laws and regulations, not merely because of dormant status.

Read more here.

Hybrid cars will sell best at GIIAS 2025

Astra Financial reported that 76% of its financing was for hybrid cars. It has financed 1,181 units of electrified cars with an increase in distribution of Rp575 billion. From January to June 2025, Astra Financial has disbursed Rp 2.5 trillion for hybrid car financing.
Automotive observer from the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, believes that GIIAS 2025 has the main allure of new and innovative cars, so it has great potential to boost car sales. This is thanks to the presence of many new brands and the launch of innovative models that consumers are interested in, especially hybrids and battery electric vehicles (BEV).

Read more here.

Maintaining Indonesia-US Trade Balance Surplus Post-New Tariff Determination

The Central Bureau of Statistics report on Indonesia's export performance on August 1 shows: the value of Indonesia's non-oil and gas exports to the US during the January-June 2025 period amounted to USD $14,778.2 million. This figure increased by 20.7% compared to the same period last year. The share of exports to the US is around 11.52% of total non-oil and gas exports.
Meanwhile, the value of imports from the US to Indonesia in the first semester of 2025 was recorded at USD $4,866 million, up 6.8% compared to the same period last year. Thus, the Indonesia-US trade balance was a surplus of nearly USD $10,000 million.
Indonesia's top three export commodities to the US are electrical machinery and equipment, footwear, and clothing and accessories. With this trend, after the 19% reciprocal tariff imposed on Indonesia by US President Donald Trump, the government can still remain optimistic that the trade balance with the US will remain in surplus.

Read more here.

KADIN Institute Seminar on Indonesia-Europe and Indonesia-US Trade: The Chamber of Commerce and Industry (Kadin) Institute held a seminar entitled "Exploring and Implementing Bilateral Trade Lines: Indonesia-EU and Indonesia-US" at Kadin Lounge, 29th Floor, Menara Kadin Indonesia, Jakarta, Monday (4/8/2025). The event is planned to be attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Trade Budi Santoso, Deputy Minister of Foreign Affairs Arif Havas Ogroseno, Director General of International Trade Negotiations of the Ministry of Trade Djatmiko Bris Witjaksono, Deputy Chair of the National Economic Council Mari Elka Pangestu, and a number of other national entrepreneurs.

Filantropi Indonesia Festival 2025 (FIFest2025): FIFest2025 is the first national gathering in Indonesia dedicated to strengthening the culture and ecosystem of philanthropy. Organized by the Indonesian Philanthropy Association, the festival brings together stakeholders from government, business, civil society, and academia to strengthen the role of philanthropy in advancing sustainable development goals (SDG's), addressing climate challenges, and supporting national priorities. The event will be held August 4-8, 2025 at Hotel Borobudur, Jakarta.