Monday, July 7, 2025

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.

QRIS Entering Warungs is a New Hope for UMKM 

On the corner of Dempo Street, Kebayoran Baru, South Jakarta, a small warteg looks like any other warung. Wooden tables, plastic chairs, cans of crackers attached to the side of the table and soy sauce and chili sauce in the center are the companions of the customers.

People were seen surrounding the table while eating. Meanwhile, a middle-aged woman was busy preparing orders and serving other customers one after another. Understandably, the clock showed that it was lunchtime.

A board with a barcode code is shown to customers who want to pay for their meal. A moment later there was a "Triingg" sound.

"You're in," Mrs. Satriana continued.

Who would have thought, the shop owned by Mrs. Satriana now serves digital payments, even for purchases of IDR 2,000. The technology is called QRIS (Quick Response Code Indonesian Standard) which is now used as a digital payment tool in Indonesia.

Not only by hipster cafes or modern stores, but also by food stalls, street vendors, home laundry, and fried food vendors.

Continue reading here.

Defense Budget Increases by 47% to Rp245 Trillion 

The government has revised the defense budget allocation for 2025 to Rp 245.2 trillion, a 47.62% increase compared to the target of Rp 166.1 trillion in the 2025 State Budget (APBN). 

This is stated in the Government Report on the Implementation of the First Semester State Budget for Fiscal Year 2025 after it was submitted to the House of Representatives on Sunday (6/7). 

The increase is intended for the procurement of defense equipment, maintenance of defense equipment, construction of military housing, and procurement of defense facilities and infrastructure. 

Meanwhile, defense spending has reached Rp102.2 trillion in the first half of 2025, or 61.6% of the 2025 state budget target.

In addition to defense, other projected increases in spending include:

• Public order and security increased by 9.22% to Rp229.7 trillion
• Healthcare rose 0.16% to Rp124.7 trillion 
• Tourism increased by 7.69% to Rp2.8 trillion 
• Education increased by 8.52% to Rp309.5 trillion 

Source: Bloomberg Teknoz, CNBC

World Busy Pursuing Tariff Negotiations with US Ahead of Deadline 

A number of countries rushed over the weekend to finalize trade agreements or negotiations ahead of the July 9 US tariff deadline. 

This was done following the latest statement by US President Donald Trump, who said that he would announce new tariffs on several countries around the world on Monday at 12 noon local time.

Previously, Trump said that the talks were still unclear because an agreement was difficult to reach. The letters should be sent by July 4 at the latest, with the new tariffs taking effect on August 1. 

Several countries are currently engaged in tough negotiations, including Japan, South Korea, the European Union, India, and Vietnam. 

In addition to Indonesia, here are some countries that are lobbying the US: 

• Japan: Japan's chief trade negotiator Ryosei Akazawa called US Trade Representative Howard Lutnick twice, on Thursday (July 3) for 45 minutes and on Saturday (July 5) for an hour. Japan will be subject to a 24% tariff on July 9 if no agreement is reached. Japan will also be subject to a 25% levy on cars and car parts and a 50% tariff on steel and aluminum. 
• South Korea: South Korean Trade Minister Yeo Han-koo held talks with US Trade Representative Jamieson Greer on Saturday in Washington. This was his second trip to the US in a week. He proposed a manufacturing partnership and called for the removal or reduction of tariffs on products such as cars and steel, the Seoul industry ministry said in a statement on Sunday. South Korea is a key U.S. ally and a major manufacturing hub for cars, semiconductors, and batteries. If the 25% levy is imposed across the board, it would further weaken an economy already hit by sluggish domestic consumption. The central bank in May cut its forecast for gross domestic product growth this year to 0.8% from 1.5%.

Source: Bloomberg

Global Smartwatch Market Down 2%, China Up 37%

The global smartwatch market declined by 2% year-on-year in the first quarter of 2025. Meanwhile, China recorded an increase of 37%, according to a report by Counterpoint Research. 

This illustrates that the global smartwatch industry has experienced a decline in sales for the fifth consecutive time. 

This decline was triggered by slowing Apple Watch sales, which saw a 9% drop in shipments. Nevertheless, Apple remained the largest smartwatch vendor globally in the first quarter of 2025 with a 20% market share. 

In contrast to Apple, Chinese brands Huawei and Xiaomi recorded rapid growth, becoming the second largest smartwatch vendors with a 53% increase in shipments.

Huawei ranks second with a market share of 16%. Meanwhile, Xiaomi ranks third with a market share of 10%, up from only 6% previously. 

Counterpoint predicts that the smartwatch market will recover slowly, with growth of around 3% by the end of 2025. 

China is the main destination for non-oil and gas exports 

Until 2025, China will remain Indonesia's main non-oil and gas export destination. According to data from Statistics Indonesia (BPS) and the Ministry of Trade, in the last five years, the value of non-oil and gas exports to China has ranged from US$50 billion to US$60 billion per year. 

During the period of January-May 2025, non-oil and gas exports to China amounted to US$24.25 billion (22.87 percent), followed by the United States with US$12.11 billion (11.42 percent), and India with US$7.28 billion (6.87 percent). The main commodities exported to China include iron and steel, mineral fuels, and nickel. 

The total value of non-oil and gas exports for the first five months of 2025 was recorded at US$106.059 billion, an increase of 8.22 percent compared to last year. This increase in non-oil and gas exports contributed to the increase in Indonesia's total exports of US$111.977 billion, or an increase of 6.98 percent. Meanwhile, the value of oil and gas exports fell by 21.71 percent to US$5.918 billion compared to last year.  

ICCA Global Association Forum 2025: The International Congress and Convention Association (ICCA) Forum is an annual event that brings together association meeting planners, senior association representatives, and meeting suppliers from around the world, providing valuable insights, practical tools, and resources to support the association meeting industry. The event focuses on sustainability, health, and regenerative event management. It will take place in Granada, Andalusia, Spain, from July 7-9, 2025. 

IEEE Meditcom 2025: The International Mediterranean Conference on Communications and Networking (IEEE MeditCom 2025) will take place in Nice, France, from July 7-10, 2025. MeditCom will feature an extensive program for attendees, including leading keynote speakers, panels, tutorials, and much more!

Have a great day, Chief.

Team SUAR