Good morning, Chief,
Below is a curated briefing from the SUAR Team highlighting critical developments in the business ecosystem that warrant your attention today.
Rojali and Rohana: Not Just Weak Purchasing Power, but a Strategic Inflection Point
The shrinking middle class and declining consumer spending have impacted shopping center revenues, triggering the rise of rojali (groups who rarely buy) and rohana (groups who only ask). This trend, increasingly seen in malls, is not just about tighter wallets.
“Consumers used to be brand-oriented; now they’re more realistic,” said Solihin, Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo). He highlighted how traditionally high-sales festive periods like Lebaran and Christmas are now shorter, with longer dry spells in between — from May to October, for instance, there are practically no major national shopping moments.
Alphonzus Widjaja, Chairman of the Indonesian Shopping Center Association (PPBI), noted that consumers have become more selective. “If it’s not necessary, they won’t buy it — or they’ll go for cheaper items,” he said after attending the kick-off of 100 local SME product licenses at Pusat Grosir Cililitan (23/7/2025).
But pricing and promotions are not the only concerns. “It’s not just about declining purchasing power; often the goods aren’t available, the sizes don’t fit, or they arrive late in Indonesia,” explained Budihardjo Iduansjah from the Indonesian Retail and Shopping Center Tenants Association (Hippindo) to SUAR (31/7).
Read more here.
Legal Uncertainty, Business Complaints, and Lessons from Singapore
“We consistently receive complaints about legal uncertainty from business players,” said Shinta W. Kamdani, Chairperson of the Indonesian Employers Association (Apindo).
In June, Apindo conducted a survey of over 100 companies across 18 provinces. The findings validated the concern: 72% said the documentation requirements are excessive, 65% felt forced to use third-party services — adding complexity and cost — and 54% pointed to lengthy recommendation processes, technical issues with the OSS system, and misalignment between central and regional regulations.
For businesses, uncertainty isn’t just about paperwork. It translates to hidden costs: stalled expansion plans, relocation abroad, and increased product prices due to prolonged processes and additional expenses.
“Business grows by managing risk — but when regulations are inconsistent, planning becomes extremely difficult,” emphasized Shinta.
Indonesia’s Ambassador to Singapore, Suryopratomo, pointed out that Singapore’s success stems from a culture of consistent, predictable regulation.
“Singapore rarely implements sudden policy changes,” he told SUAR (30/7/2025). Strategic policy revisions always begin with public consultation, regulatory impact assessments, and multi-year planning. “This allows both local and foreign businesses to adapt and strategize accordingly,” he added.
Read more here.
Food Tray Producers Ready to Supply MBG Program
Local food tray manufacturers, represented by the Indonesian Association of Kitchen & Dining Tools (Aspradam) and the Indonesian Association of Food Container Producers (Apmaki), have declared that their production capacity is more than sufficient to independently supply trays for the Makan Bergizi Gratis (Free Nutritious Meal/MBG) program, without relying on imports.
The government's plan to import food trays to accelerate the ambitious MBG program under President Prabowo Subianto has raised concerns among local industry players.
“The local industry can deliver quality trays without import dependence,” stated Andi, a member of Aspradam, during the Forum on the Role of Domestic Food Tray Producers in Supporting MBG in Jakarta (31/7/2025).
PT Makmur Bersama Garuda Commissioner Alie Cendrawan echoed the sentiment in Jakarta, Thursday (1/8). (Arfan Tarigan/SUAR)
Read more here.
Learning from Global Green Financing Models: Temasek and North Fund
Singapore’s Temasek Holdings and Norway’s North Fund — both sovereign wealth funds (SWFs) — are leading examples of green financing to achieve net-zero emissions.
Temasek enforces five strict funding principles, including a ban on fossil fuel investments and mandatory net-zero targets by 2050 for funded entities. They finance not only banking but also industrial and project-based activities.
The North Fund, sourced from Norway’s oil and gas dividends, is equally admired for its transparency. The public can access detailed information on its investment portfolios, project lists, and return rates.
Read more here.
Trade Sector Receives Most Credit Allocation
Amid economic uncertainty, Bank Indonesia's third rate cut this year brings a breath of fresh air to the business community. The trade sector continues to dominate credit allocation.
As of March 2025, data from Bank Indonesia shows that total loans disbursed by commercial banks and rural banks reached IDR 7,818.235 trillion. Loans to productive sectors accounted for IDR 5,581.160 trillion or 71% of total credit.
Trade remains the leading recipient of credit, amounting to IDR 1,206.9 trillion or 21.6% of total sector-based credit. Though nominal credit to trade has grown 3.5% annually (2019–2024), its share has declined from 25% in 2019 to 21.7% in 2024.
Read more here.
BPS to Release July 2025 Inflation and Trade Data
The Central Statistics Agency (BPS) will release data on July 2025 inflation and exports-imports on Friday (1/8/2025) at 2:00 PM Jakarta time, at BPS Headquarters. Additional releases include data on corn and rice production, Farmer’s Terms of Trade (NTP), rice price developments, tourism, and transportation trends. These data serve as key indicators for business decision-making.
New Tax Policy on Gold Bullion Purchases via Bullion Banks
Starting August 1, 2025, the Ministry of Finance will impose a purchase tax on gold bullion bought through bullion banks, payable by the buyer. This regulatory shift is expected to significantly impact the gold industry, investment behavior, and financial markets — potentially affecting consumer interest in physical gold via bullion banks.
“If you think long term, you can make very good decisions you won’t regret.”
— Jeff Bezos, Founder of Amazon
Wishing you a productive day, Chief.
— SUAR Team