Prepare for Trump Tariffs 2.0

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Below are key business developments curated by the SUAR Team:

Trump Tariff 2.0: Indonesia’s 19% Levy Brings Both Risks and Openings

U.S. President Donald Trump has imposed new import tariffs on 68+ countries effective August 7, 2025. Indonesia faces a 19% tariff, similar to Thailand, while Vietnam is hit with 20%.
Fithra Faisal Hastiadi, spokesperson for Indonesia’s Presidential Communications Office on economic affairs, said the policy poses challenges but also opportunities. “In every difficulty there is opportunity,” he noted. For example, the U.S. plan to cut soybean meal tariffs to 0% could lower feed costs and help Indonesia’s poultry farmers. Additionally, if the U.S. imposes high tariffs on Chinese products, Indonesia could fill market gaps—especially in categories that do not compete directly with the U.S.
Paramadina University economist Wijayanto Samirin views the 19% rate for Indonesia as a reasonably good starting point. The key now lies in negotiation details: identifying products that can be further negotiated, determining the most sensitive sectors, and safeguarding competitiveness against neighboring countries.

Read more here.

Inflation Remains Contained and On Target

Statistics Indonesia (BPS) reported July 2025 inflation at 2.37% year-on-year, within the government and Bank Indonesia’s target range of 1.5%–3.5%.
BPS data show the main contributors to July’s annual inflation were jewelry gold (0.46% contribution), shallots (0.18%), tomatoes (0.16%), rice (0.15%), and water utility (PAM) tariffs.
By component, July 2025 core inflation stood at 2.32% year-on-year. Volatile food inflation reached 3.82% year-on-year, while administered prices rose 1.34% year-on-year.

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Block–Unblock Accounts Leaves Businesses and Customers Confused

After days of public debate and social-media chatter, Indonesia’s Financial Transaction Reports and Analysis Center (PPATK) on Thursday (July 31, 2025) lifted its block on 28 million dormant bank accounts.
By law, the blocking of dormant accounts is permitted. Under Law No. 10/1998 amending Law No. 7/1992 on Banking, a customer account can be categorized as dormant if there is no transaction activity for a period set by each bank—typically 6 or 12 consecutive months.

Dormant-account provisions are generally regulated by banks’ internal policies and adhere to prudential principles and consumer protection. PPATK may only block dormant accounts when there is a clear legal basis—namely, suspected involvement in criminal activity as stipulated by law—not merely due to dormant status.

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Hybrids Are Top Sellers at GIIAS 2025

Astra Financial reported that 76% of its auto financing at GIIAS 2025 was for hybrid vehicles. It financed 1,181 electrified units, with additional disbursements totaling Rp575 billion. From January to June 2025, Astra Financial channeled Rp2.5 trillion for hybrid-car financing.
According to automotive analyst Yannes Martinus Pasaribu of the Bandung Institute of Technology (ITB), GIIAS 2025’s main draw is new and innovative models, which could significantly boost sales—driven by the arrival of many new brands and the launch of models that appeal to consumers, especially hybrids and battery electric vehicles (BEVs).

Read more here.

Maintaining the Indonesia–U.S. Trade Surplus After New Tariffs

Statistics Indonesia’s (BPS) August 1 release shows Indonesia’s non-oil and gas exports to the U.S. reached US$14,778.2 million in January–June 2025, up 20.7% year-on-year and accounting for 11.52% of total non-oil and gas exports.
Imports from the U.S. totaled US$4,866 million (+6.8%), leaving an Indonesia–U.S. trade surplus near US$10,000 million (≈ US$9.9 billion).
Key export winners: electrical machinery and equipment, footwear, and apparel/accessories. With Washington’s 19% reciprocal tariff on Indonesia now in place, the government remains optimistic the bilateral balance will stay in surplus given current trends.

Read more here.

KADIN Institute Seminar on Indonesia–Europe and Indonesia–U.S. Trade:
The Chamber of Commerce and Industry (Kadin) Institute will hold a seminar titled “Exploring and Implementing Bilateral Trade Pathways: Indonesia–European Union and Indonesia–United States” at the Kadin Lounge, 29th Floor, Menara Kadin Indonesia, Jakarta, on Monday (August 4, 2025). The event is scheduled to be attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Trade Minister (Mendag) Budi Santoso, Vice Foreign Minister Arif Havas Ogroseno, Director General of International Trade Negotiations at the Ministry of Trade Djatmiko Bris Witjaksono, National Economic Council Vice Chair Mari Elka Pangestu, and several other national business leaders.

Philanthropy 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 the Sustainable Development Goals (SDGs), addressing climate challenges, and supporting national priorities. The event will be held from August 4–8, 2025, at Hotel Borobudur, Jakarta.