UMKM Can Export from ASEAN to Europe

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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.

Amid Trump Tariff Uncertainty, Foreign Exchange Reserves Recorded Stable

Based on official information from Bank Indonesia (BI) on Thursday (7/8/2025), the foreign exchange reserve position in July 2025 was recorded at US$152.0 billion, slightly down from the end of June 2025 position of US$152.6 billion. This foreign exchange reserve position is considered very adequate because it is equivalent to financing 6.3 months of imports, above the international standard of 3 months of imports.
Indonesia's foreign exchange reserves have been relatively stable from April 2025 to July 2025. In April, the value of foreign exchange reserves was at USD 152.46 billion, in May at USD 152.48 billion, in June at USD 152.56 billion, and in July at USD 151.98 billion.

Chairman of the Indonesian Export Entrepreneurs Association (GPEI), Benny Soetrisno, said that potential future pressures still need to be observed, especially from the US tariff policy which sets an import tariff of 19% on products originating from Indonesia, which could affect national export performance. Leading commodities such as coal and CPO are expected to remain the main support for the resilience of Indonesia's external sector.

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The UMKM Path to Penetrating Europe: When Trade Agreements Become New Opportunities

When the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was finally completed after a long process, many placed great hopes on this agreement.
In fact, even before CEPA was officially agreed upon, Indonesia had recorded a trade surplus with Europe. The value of exports to this region reached USD 9.6 billion for the January-June 2025 period, placing Europe as the second-largest trading partner after ASEAN. Now, with more favorable tariffs and preferential schemes, the potential for exports to Europe is predicted to skyrocket.
Executive Director of the Indonesian Chamber of Commerce and Industry (Kadin) Institute, Mulya Amri, mentioned that Europe is willing to assist in capacity building. Mulya emphasized the importance of traceability, the ability to trace the origin of products, which is an absolute requirement in the European market. Collaboration between Europe, the Indonesian Government, and Kadin is directed at preparing small business actors to be export-ready.

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Fighting Digital Crime, Banking Tightens Mitigation and Collaboration

Banking in Indonesia is strengthening its digital financial crime prevention strategy by focusing on education, advanced technology, and cross-institutional collaboration. This is in response to the increasing number of new crime modes such as buying and selling accounts or account "take over" which causes huge losses in the community.
Perbanas Head of Legal and Compliance Fransiska Oei explained that banks have carried out various prevention efforts. One of the main steps is comprehensive education to customers, the public, and internal staff about the risks of digital crime and new modes.
Banking observer and President Director of PT National Electronic Transaction Settlement (PTEN), Arianto Mudiotomo, is of the opinion that banking continues to strengthen its prevention strategy through advanced technology. According to him, banks in Indonesia have implemented anomaly detection systems based on machine learning and artificial intelligence (AI) to monitor suspicious transaction patterns in real-time.

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Government Encourages UMKM to Intensify Exports to ASEAN

The government on Thursday (7/8/2025) called on Indonesian micro, small and medium enterprises (UMKM) to intensify exports to ASEAN using various digital platforms, without having to meet in person.
The UMKM Bisa Ekspor program has facilitated approximately 773 UMKM with transaction values reaching USD 90 million, or around IDR 1.4 trillion.
Cross-border electronic commerce in the ASEAN region plays an important role in strengthening Indonesia's exports, especially for UMKM players.

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Diversification of Indonesia's Export Market from the US to the European Union

The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and Trump's new tariff policies will transform Indonesia's export map to become more diversified. Exports to the European Union have the potential to increase, while the export market to the US may not necessarily contract.
The United States is the second-largest export market for Indonesian commodities and products after China. Indonesia's trade with the United States in 2024 reached approximately 42.9 billion US dollars. With the value of Indonesian commodity exports to the US amounting to 26.3 billion US dollars, the surplus in trade of goods for Indonesia was recorded at 16.8 billion US dollars. Indonesia's main exports to the US include electrical and electronic equipment, clothing, animal/vegetable oils and fats, and footwear.

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ASEAN Online Sale Day (AOSD) 2025: AOSD 2025 is an annual online shopping event held by the Association of Southeast Asian Nations (ASEAN) to promote cross-border e-commerce in the ASEAN region. The event takes place from August 8-10, 2025, with the theme “A Click to Prosperity”, providing a platform for various businesses, including UMKM, to promote their products and services to millions of consumers throughout Southeast Asia. Participants in this event can offer exclusive discounts and promotions that can be identified through the AOSD logo. In Indonesia, this event is supported by the Ministry of Trade, which emphasizes collaboration with e-commerce to support local UMKM exports. More details can be found here https://onlineasean.com/index.html.

Bank Indonesia Consumer Survey for July 2025: On Friday, August 8, 2025, Bank Indonesia is scheduled to release the results of the Bank Indonesia (BI) Consumer Survey for the July 2025 period. This survey is conducted periodically every month by BI to measure consumer confidence in Indonesia's economic conditions. Various indices such as the Consumer Confidence Index (IKK), the Current Economic Condition Index (IKE), and the Consumer Expectation Index (IEK) are also key highlights in the survey results. The complete survey results can be viewed on the Bank Indonesia website.

"A skilled entrepreneur will employ wise people, brave people, greedy people, and foolish people. Because wise people enjoy building their achievements, brave people like to show their courage, greedy people are quick to take profits, and foolish people are not afraid to die." Sun Tzu (Chinese Strategist)