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.


Safe Environment, Healthy Business
- Business and environmental sustainability appear to have an interdependent relationship. Business activities can have a significant impact on the environment. Vice versa, environmental conditions also affect the operations and long-term prospects of a company. Quoted from the Inarisk website managed by BNPB, the total potential physical losses reached Rp 4,491 trillion and losses of around Rp 4,497 trillion. This comes from a total calculation of 13 disaster categories such as earthquakes, tsunamis, floods, landslides, extreme weather, forest fires, and also volcanic eruptions. This figure is greater than the total state expenditure in the 2025 State Budget (APBN) which amounted to IDR 3,621 trillion.
- The Ministry of National Development Planning/National Development Planning Agency (Bappenas) in 2024 stated that the impact of natural disaster losses in Indonesia reached an average of IDR 1.06 trillion per year. The total cost of climate change mitigation reaches Rp 4 trillion per year. Indonesia's Gross Domestic Product (GDP) also has the potential to decline by 19 percent when the earth's temperature rises to 4 degrees Celsius.

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Entrepreneurs Must Read Bank Indonesia's 2026 Economic Estimates
- Bank Indonesia (BI) estimates 2026 economic growth in the range of 4.9%-5.7%. This is supported by 2025 economic growth in the range of 4.7%-5.5%. Indonesia's economic growth in 2027 is expected to continue to accelerate in the range of 5.1%-5.9%. Meanwhile, inflation in 2026 is expected to remain under control in the range of 1.5%-3.5%. This continues the controlled inflation in 2025 and continues in 2027 at the same estimated range of 1.5%-2.5%. See also what BI's monetary policy direction will be in 2026.

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ICOR Still Too High, Making Investment Less "Nutritious"
- Indonesia's Investment Cost or what is known as the Incremental Capital Output Ratio (ICOR) is still high. Data from the Central Statistics Agency (BPS) noted that Indonesia's ICOR score at the end of 2023 was at the level of 6.33. This figure reflects the high investment required to produce one additional unit of economic growth output. Indonesia's ICOR cost is higher than India's which reached 4.56 and Vietnam's at 3.58. This means that Indonesia needs an additional investment of Rp6.33 to create an additional output of Gross Domestic Product (GDP) of Rp1. Meanwhile, India is only Rp4.56 and Vietnam is only Rp3.58. A smaller ICOR number shows the efficiency and effectiveness of an investment in a country.

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Digital Warehouse to Relocation as Solution for National Logistics Efficiency
- The Ministry of National Development Planning/National Development Planning Agency (Bappenas) notes that national logistics costs have fallen progressively over the past 20 years. It currently stands at 14.29% of GDP, but this is still high and a big challenge as the government's target is to reach 9% of GDP by 2045 to be able to compete with other countries at the global level. Digitalization of warehousing and relocation of logistics centers to potential economic growth points outside Java are two offers for logistics sector players for efficiency while building a sustainable supply chain.

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New Car Brands Show Off at the End of the Year


Strengthening the Upstream and Downstream of the Textile Industry
- The performance of the textile industry is under pressure as seen from the contraction in the October 2025 Industrial Confidence Index (IKI) which stood at 49.74 points. Indications of contraction are also reflected in Bank Indonesia's Prompt Manufacturing Index (PMI) data for the Textile and Apparel Industry Subfields, which were below the 50% mark throughout the second and third quarters of 2025, at 45.15% and 48.29% respectively.
- This contraction indicates a significant decline in business performance, especially amid the issue of "import floods" of downstream textile products, including apparel. Less stringent import policies are the main cause of mass layoffs in several large textile factories such as Sritex Group and PT Bapintri. Most recently, the Indonesian Fiber & Filament Yarn Producers Association (APSYFI) reported that five upstream textile mills have officially ceased production operations due to continued decline.

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Export-Import Data October 2025 & Inflation November 2025. On Monday (1/12/2025) the Central Bureau of Statistics (BPS) is scheduled to release Export and Import Developments and Consumer Price Index (CPI) Developments. The data is a benchmark for policy, especially around the development of foreign trade per industrial sector and country and also looks at the development of inflation and people's purchasing power. A press conference related to several data that will be released by BPS will take place at 11:00 a.m. WIB, at the BPS RI Head Office, Jakarta. Further information can be directly accessed through the official BPS website.
Indonesia Manufacture Purchasing Managers Index (PMI) Release November 2025. S&P Global is scheduled to release a number of Manufacturing PMI (Purchasing Managers' Index) data for the Asian region and various countries in the world on Monday, December 1, 2025. Specifically, at 00:30 UTC (or 07:30 WIB) S&P Global will release Indonesia Manufacturing PMI data along with Manufacturing PMIs for ASEAN, Japan, Malaysia, the Philippines, South Korea, Taiwan, Thailand, and Vietnam. This data release is important to follow as the Manufacturing PMI is a leading economic indicator that measures the health of a country's manufacturing sector. The index includes surveys of purchasing managers on new orders, output, employment, and stocks. More information about the data publication can be directly accessed through the official S&P Global website.

"If you're not stubborn, you'll give up too soon. If you're not flexible, you'll hit a wall." (Jeff Bezos - Amazon Founder)
Have a good day, Chief.
Team SUAR