All-Time High IHSG Record, Used Cooking Oil Innovation, and Rice Price Controls

Good morning, Chief…

Here is some important information on business developments that deserve attention today, curated by the SUAR Team.

Capital Injection Pushes IHSG to Record High

The Jakarta Composite Index (IHSG) recorded its highest level in history at the close of trading on Thursday (August 14, 2025), reaching 7,931 — up 0.49% compared to the opening. This broke the previous record of 7,910 set on September 19, 2024.
The rally reflects Indonesia’s increasingly attractive investment climate for both domestic and foreign investors. Investor confidence was further lifted by the release of fresh economic growth data, which showed the economy expanding 5.1%.

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Turning Used Cooking Oil into Green Energy

PT Pertamina (Persero) has officially started producing bioavtur, or Pertamina Sustainable Aviation Fuel (SAF), made from a blend of used cooking oil (UCO). The initiative is part of Pertamina’s drive to accelerate Indonesia’s clean energy transition and curb carbon emissions.

A sample of Pertamina Sustainable Aviation Fuel (SAF), made from a blend of Used Cooking Oil (UCO), symbolically displayed at the First Lifting Ceremony of Pertamina Sustainable Aviation Fuel (SAF) at Pertamina Refinery Unit IV Cilacap, Central Java, Tuesday (12/8/2025). KPI officially conducted the first lifting or initial shipment of Pertamina Sustainable Aviation Fuel (SAF), made from a blend of Used Cooking Oil (UCO), for Pelita Air Services flights on the Jakarta–Denpasar route. ANTARA FOTO/Idhad Zakaria/foc.

Taufik Aditiyawarman, President Director of PT KPI, said that the fossil oil content in SAF products is around 97%. The production capacity of SAF at the Cilacap Refinery reaches approximately 1,200 kiloliters per day with a 3% used cooking oil blend. “So, the current need for used cooking oil is around 40 kiloliters per day to produce roughly 1,200 kiloliters of Pertamina SAF,” he said.

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The Dilemma of Rising Rice Prices

Rice prices in Indonesia have continued to climb, reaching their highest levels on record. Data from the National Food Agency (Bapanas) shows premium rice now selling at IDR 15,622 per kilogram, while medium-quality rice has reached IDR 13,860 per kilogram.
Authorities warn that stricter law enforcement in the rice trade, targeting practices such as stockpiling and mixing, could risk confusion between hoarded supplies and stocks already in circulation.

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Paylater Emerges as a Short-Term Financial Fix

Paylater services are expanding rapidly, offering consumers a short-term solution to financial needs amid weakening purchasing power. While the trend presents opportunities, business owners are urged to remain cautious and closely monitor the risk of rising bad debts.

Aviliani, a senior economist at the Institute for Development of Economics & Finance (INDEF), said paylater services offer consumers an easy financial solution. The scheme allows users to purchase goods or services without immediate payment, requiring only a down payment, with the remaining balance settled through installments over a set period.

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Utilization of Natural Gas Production for Industry vs. Export

National natural gas production has remained relatively stable over the past five years. In the first half of 2024, output stood at 6,635.5 MMSCFD, only slightly lower than the previous year. Of this volume, 69.17% was allocated to meet domestic demand, with the rest exported.
Industrial use accounted for around 27% of consumption, a share that has generally been on the rise. In 2023, it reached a peak of 30.83%, reflecting the government’s push for structural transformation by shifting emphasis from agriculture toward the processing industry sector.

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Financial Note and 2026 State Budget Bill (RUU APBN 2026): An important step in Indonesia’s budget preparation cycle will take place on August 15, 2025, when President Prabowo Subianto delivers the State Address, the Financial Note, and the Draft State Budget Bill (RUU APBN 2026). This annual event, presented before the House of Representatives (DPR), will outline government policy directions and development priorities for the 2026 fiscal year. The speech serves as a key reference for the public, business actors, and stakeholders in understanding how state funds will be allocated for the benefit of the people.

Indonesia’s External Debt Statistics (SULNI) June 2025: On August 11, 2025, Bank Indonesia will release its External Debt Statistics (SULNI) report for June 2025, published on the central bank’s official website. The report details the amount, structure, and composition of Indonesia’s external debt, covering both government and private obligations. This data provides critical insight for investors, analysts, and policymakers as they assess the country’s financial stability and potential vulnerabilities in the global market.

"Your work will fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do." — Steve Jobs, founder of Apple.