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.

Opportunity to Attract Foreign Tourists to Indonesia Due to the Thailand and Cambodia War

• The war between Thailand and Cambodia provides an opportunity for Indonesia to attract foreign tourists (wisman) who previously planned to vacation in those countries to divert their trips to Indonesia.
• Chairman of the Indonesian Tourism Industry Association (GIPI) Hariyadi Sukamdani said that Thailand's war with Cambodia was indirectly an opportunity for the domestic tourism industry. Because of the war in the two neighboring countries, foreign tourists have the potential to divert their holidays to Indonesia.

• Bhima Yudhistira, Executive Director of CELIOS, said that foreign tourists visiting Thailand are 35 million people per year, while Cambodia is 6.2 million per year.
• Senior Economist at the Institute for Development of Economics and Finance (INDEF) Tauhid Ahmad said that there are opportunities from the war. Especially if the conflict there occurs continuously. But if it's only for a short time, usually the tourists will still come back.

Read the full story here.

Property Incentives to Boost the Economy

• In order to boost the economy, the government has provided various stimuli for the property sector, such as Government Borne Value Added Tax (PPNDTP) and lighter down payments.
• The government decided to maintain the 100% Government Borne Value Added Tax (PPNDTP) facility for home purchases until the end of 2025. In fact, it was previously planned to drop to 50% in the second semester.
• In addition to the tax stimulus, the government also introduced two new policies that directly target low-income people and formal workers.
• First, the Rp130 trillion Housing People's Business Credit (KUR). This is the first time KUR has been allocated to the property sector, which was previously synonymous with working capital for UMKM.
• Second, the gotong royong initiative: developers of subsidized houses agreed to directly bear the down payment (DP) for workers participating in the BPJS Ketenagakerjaan, averaging Rp1.7 million per person.

Read the full story here.

How to keep a family business lasting until the third generation

• There is no single formula for keeping a family business going across generations. Every family has different challenges, histories and solutions. That's the principle held by Victor Hartono - one of the 3rd generation heirs of the Djarum Group business that has crossed various eras and industry sectors.
• Before the Djarum Group was transformed into a giant industry in Indonesia, not many people knew that this family business began as a peanut oil industry in the areas of Rembang, Tuban, and Pati - areas known as peanut farming centers. Victor's grandparents worked on this business. He is in the ninth generation of the peanut oil business.

Read the full story here.

Tariff War Escalates, Financial System Stability Maintained

• The tariff increase policy by US President Donald Trump as well as geopolitical and military upheaval in a number of countries are considered to be two external factors that have the potential to destabilize global financial foundations, including Indonesia.
• However, despite the uncertainty, the government through the Financial System Stability Committee (KSSK) remains optimistic that the fundamentals of the domestic economy are strong enough to reduce pressure and maintain growth until the end of the year.

• In the KSSK press conference held last Monday afternoon (28/07) at Pacific Century Place, South Jakarta, Finance Minister Sri Mulyani said that financial system stability or SSK in the second three months of 2025 was maintained despite high global uncertainty. 
• Speaking of external pressures, Deni Priawan, an international economics researcher at the Center for Strategic and International Studies (CSIS), has an interesting perspective. He highlights how initially many people were worried that America's protectionist policies, including Donald Trump's "America First" high tariffs, would trigger inflation in Uncle Sam's country.

Read the full story here.

Downstreaming Developed in Outer Java

• Throughout 2024, investment realization in the downstream sector, both PMA and PMDN, reached IDR 407.8 trillion. Four provinces that are the main locations of downstream projects are outside Java.
• The total downstream investment realization value of IDR 407.8 trillion in 2024 is equivalent to 23.8% of the total investment value. The location of the largest realization with a value of IDR 241.8 trillion (59%) is outside Java, namely Central Sulawesi, North Maluku, West Nusa Tenggara, and Riau. The main downstream commodities developed in the four provinces are quite diverse. In Central Sulawesi and North Maluku, the priority is on the Nickel commodity. In NTB for copper commodities, and in Riau for the development of crude palm oil or CPO production.
• This pattern of downstream development seems to have shifted slightly in 2025. In the first quarter of 2025, the total value of downstream investment realization reached IDR 136.3 trillion or equivalent to 29.3% of the total investment value. However, of the five main locations, the share of downstream realization in provinces outside Java shrank, around 36% worth IDR 48.68 trillion in two provinces, namely Central Sulawesi and North Maluku. Meanwhile, another sizeable portion of downstreaming is in Java, namely in West Java, East Java, and Banten with a realization value of IDR 31.5 trillion (23%).

Read the full story here.

Second Quarter Investment Realization Press Conference 2025: The Ministry of Investment and Downstreaming/BKPM is holding a press conference on the second quarter realization on July 29, 2025 at the Ismael Saleh building, the relevant ministry office. The event will start at 10:00 am West Indonesia Time and media who wish to cover the event are encouraged to register via the link provided by the organizing committee. 

The event will be attended by the minister of investment and downstreaming/head of BPKM, Rosan Roeslani, who will directly convey the realization of the second quarter. Previously, investment realization in downstream reached Rp136.3 trillion, which increased by 79.82% from the previous quarter.  

Sectors that successfully recorded investment realization this year are the basic metal industry sector, non-metal metal goods and equipment, warehouse transportation and telecommunications, mining, other services, housing, office industrial estates. In the quarterly press conference agenda, entrepreneurs are also required to submit LKPM reports periodically.

Bisnis Indonesia MidYear Challenge 2025: Towards four decades of Bisnis Indonesia MidYear Challenge 2025 will be held on July 29, 2025 at the Borobudur Hotel in Central Jakarta. This event will discuss the government's efforts with industry players in seeing opportunities and strategic roles in building a resilient industry. 

The event will start at 13.00 and participants are required to register in advance via the form provided by the committee. Bisnis Indonesia Midyear challenge is a forum created to bring together stakeholders across sectors to discuss the direction of economic policy. 

The forum is themed Mapping Opportunities from Global Economic Votality and will feature Coordinating Minister for the Economy Airlangga Hartarto as the keynote speaker. On this occasion, participants can effectively discuss the latest issues surrounding the global economy.

"We can only create good jobs if we make smarter investments in infrastructure and do more to support small businesses, not rigid ones." Michael Bloomberg (entrepreneur)

Have a good day Chief.

Team SUAR