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 an official statement from Bank Indonesia (BI) on Thursday (7/8/2025), the position of foreign exchange reserves in July 2025 was recorded at US$152.0 billion, slightly down from the position at the end of June 2025 of US$152.6 billion. The position of foreign exchange reserves 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 from April 2025 to July 2025 were in a relatively stable position. 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 Exporters Association (GPEI) Benny Soetrisno said that potential pressures ahead still need to be watched, especially from the US tariff policy that sets an import tariff of 19% on products from Indonesia, which could affect national export performance. Leading commodities such as coal and CPO are expected to remain the main pillars of Indonesia's external sector resilience.

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UMKM ' Path to Europe: When Trade Agreements Become New Opportunities

When the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) was finally finalized after a long process, many had high hopes for the deal.
In fact, even before CEPA was officially agreed, Indonesia had recorded a trade surplus with Europe. The value of exports to this region reached USD9.6 billion for the January-June 2025 period, placing Europe as the second largest trading partner after ASEAN. Now, with more friendly tariffs and preferential schemes, the potential for exports to Europe is predicted to skyrocket.
Executive Director of Kadin Indonesia Institute Mulya Amri said Europe is willing to help increase capacity. Mulya emphasized the importance of traceability, the ability to track the origin of products, which is an absolute requirement in the European market. Collaboration between Europe, the Indonesian government, and Kadin is geared towards preparing small businesses to be export-ready.

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Fighting Digital Crime, Banking Tightens Mitigation and Collaboration

Banks in Indonesia are strengthening their digital financial crime prevention strategies with a focus on education, advanced technology, and cross-agency collaboration. This is in response to the rise of new crime modes such as account buying and selling or"takeover" accounts that cause 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 Penyelesaian Transaksi Elektronik Nasional (PTEN) Arianto Mudiotomo believes that banks continue to strengthen prevention strategies through advanced technology. According to him, banks in Indonesia have implemented an anomaly detection system based on machine learning and artificial intelligence (AI) to monitor suspicious transaction patterns in real-time.

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Government Encourages UMKM to Export to ASEAN

The government on Thursday (7/8/2025) called on Indonesian micro, small and medium enterprisesUMKM) to intensify exports to ASEAN using various digital platforms, without having to meet in person.
The UMKM Bisa Ekspor program has facilitated around 773 UMKM with a transaction value of USD 90 million or around Rp1.4 trillion.
Cross-border e-commerce in the ASEAN region plays an important role in strengthening Indonesia's exports, especially for UMKM players.

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Indonesia's Export Market Diversification from US to EU

The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and Trump's new tariff policy will change Indonesia's export map to become more diversified. Exports to the EU are likely to increase, while the export market to the US may not necessarily contract.
The United States is Indonesia's second largest export market for commodities and products after China. Indonesia's trade with the United States in 2024 reached around USD $42.9 billion. With Indonesia's commodity exports to the US amounting to USD $26.3 billion, the goods trade surplus for Indonesia was recorded at USD $16.8 billion. 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 organized by the Association of Southeast Asian Nations (ASEAN) to encourage cross-border e-commerce trade 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 across Southeast Asia. Participants of this event can offer exclusive discounts and promotions that can be identified through the AOSD logo. In Indonesia, the 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 July 2025 Period: On Friday, August 8, 2025 Bank Indonesia is scheduled to release the results of the July 2025 Bank Indonesia (BI) Consumer Survey. This survey is a survey conducted periodically every month by BI to measure consumer confidence in Indonesia's economic conditions. Various indices such as the Consumer Confidence Index (CCI), Current Economic Conditions Index (CCI) and Consumer Expectations Index (CEC) are also the main exposure in the survey results. Related survey results can be seen in full through the Bank Indonesia website.

"A skillful businessman will hire the wise, the brave, the greedy, and the foolish. Because the wise man likes to build on his achievements, the brave man likes to show his courage, the greedy man is quick to take advantage, and the fool is not afraid of death." Sun Tzu (Chinese Strategist)