Creative Cities Boost Revenue as Central Government Funding Declines

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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.

Tips for Anticipating Turbulence in the Decline of Local Government Revenue

The city government will face complex challenges in 2026, triggered by a decline in Regional Financial Transfers (TKD) from the Ministry of Finance. Given the city government's high dependence on TKD, this reduction in funds from the central government could potentially lead to delays in employee salary payments and a reduction in development projects. However, like skilled pilots facing turbulence, mayors must still do their utmost to overcome these challenges.
Based on this issue, Suar.id collaborated with the Association of Indonesian City Governments (Apeksi) to hold Roundtable Decision the theme "Encouraging Increased Local Revenue" on Thursday (11/12/2025) in Jakarta. Deputy Minister of Home Affairs Bima Arya Sugiarto was present to give a speech. Also participating in the discussion were Surabaya Mayor and Apeksi Chairperson for 2025-2030 Eri Cahyadi, Head of the Regional Revenue Agency (Bapenda) of Malang City Handi Priyanto, Advisor to the Indonesian Hotel and Restaurant Association (PHRI) Yozua Makes, Director of Regional Taxes and Levies at the Ministry of Finance Lydia Kurniawati Christyana, and Researcher at the Institute for Economic and Social Research (LPEM) at the University of Indonesia Riatu Mariatul Qibthiyyah. The event will be moderated by the Founder and Editor-in-Chief of Suar.id, Sutta Dharmasaputra.

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3-Year Credit Relaxation Helps Recovery of Debtors Affected by Natural Disasters

The Financial Services Authority (OJK) has approved special treatment in the form of credit relaxation for up to 3 years for debtors affected by natural disasters in Aceh, North Sumatra, and West Sumatra as an effort to assist in post-disaster recovery. This is in accordance with OJK Regulation Number 19 of 2022 concerning Special Treatment for Financial Services Institutions in Certain Regions and Sectors in Indonesia Affected by Disasters, also known as POJK Bencana. In accordance with the provisions of Article 8 of the POJK, special treatment based on the determination of being affected by a disaster includes several measures. First, credit quality assessment based on the accuracy of 1-pillar payments for ceilings of up to IDR 10 billion. The pillar in question is the accuracy of principal or interest payments only. Second, the determination of current credit quality for restructured credit can be applied to financing disbursed before and after the debtor was affected by the disaster. Third, new financing will be provided with a separate credit quality assessment, temporarily suspending the one obligor principle. This special treatment is valid for a period of up to 3 years from the date of its enactment at the OJK Board of Commissioners meeting in Jakarta on Wednesday, December 10, 2025.

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Industry Proposes Fair Royalty Policy to Mineral and Coal Sector

Mining industry entrepreneurs have proposed that the government conduct an evaluation of royalty policies and fiscal frameworks for mining commodities as a short-term solution to save the industry. This is being done in order to understand the decline in the contribution of minerals and coal (minerba) after being affected by the impact of global supply chain disruptions.
CEO of Tura Consulting Indonesia and Deputy Chair of the Indonesian Mining Association (Perhapi) Resvani said that geopolitical events were the main cause of the ongoing decline in mineral commodity prices. As a result, despite having the world's largest nickel reserves, Indonesia is experiencing an oversupply due to reduced market demand.

Entering the Technical Phase, Indonesia Ready to Become an OECD Member in 2027

Indonesia is currently undergoing a technical review, which is one of the accession processes to become a full member of the Organization for Economic Cooperation and Development (OECD). Coordinating Minister for Economic Affairs Airlangga Hartarto said that the technical review stage is a crucial process to test the alignment of national policies with the standards of developed countries, with a target completion date of 2027.

Featured Video Roundtable Decision, Encouraging Increased Local Revenue for Cities

October to January: Peak Season for Indonesians Traveling Abroad

Based on data from the Central Statistics Agency (BPS), the number of domestic tourists in 2021 was at its lowest point, recorded at 1.7 million trips. In 2020, the number was still higher, at 2.9 million trips, because during the first 3 months of that year, mobility was not yet restricted. Throughout this year, from January to October, there were 7.5 million domestic tourists. With an average of 754,739 domestic tourists traveling abroad per month, the total number of domestic tourists by the end of the year will reach 9 million trips. However, this number has not yet recovered to pre-pandemic levels. In 2019, the number of domestic tourists reached more than 11 million trips.
The pattern of large-scale tourist movements begins in October and peaks in January. This is triggered by a decline in formal activities as the year draws to a close and holidays during the end of the year and the beginning of the new year. After that, tourist movements slow down until June-July, when they increase again in line with school holidays. The period from August to September sees another slowdown. This cycle repeats itself every year.

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The Indonesia Productivity Summit 2025 is scheduled to take place on Friday, December 12, 2025, starting at 1:00 p.m. WIB, at Ballroom 1 & 2, JIExpo Convention Center and Theater, Kemayoran, Central Jakarta. This forum, initiated by the Ministry of Manpower, will feature a main panel discussion session with the theme "Accelerating Productivity Through People, Technology, and Industry Transformation," as well as a keynote speech by the Minister of Manpower, Prof. Yassierli, Ph.D.. Through a series of sessions featuring experts from various sectors, this event aims to become a space for exchanging ideas and sharing best practices, thereby strengthening synergy in the development of Indonesia's vital human resources towards the vision of Indonesia Emas 2045. Information related to the event can be accessed directly through the official Instagram account of the Indonesia Productivity Summit.

Statistical Release from the Central Statistics Agency (BPS). On Friday, December 12, 2025, BPS is scheduled to publish several statistical results, one of which is the 2025 Housing and Environmental Health Indicators. This publication will present various indicators with various disaggregations, such as village classification, gender of the head of household (KRT), level of education completed by the KRT, and household expenditure quintile. These indicators are the result of the National Socioeconomic Survey (Susenas). It is hoped that this publication will serve as a reference in designing planning, monitoring, and evaluation related to housing and environmental health. The publication can be accessed directly through the official BPS website.