Fresh Ideas to Boost the Economy by 8%

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.

Learning from the Past, Pursuing 8% Economic Growth Through TFP Improvement

Historically, Indonesia has recorded economic growth of 8% through optimaltotal factor productivity (TFP). TFP is a measure of the efficiency and effectiveness of the use of all factors of production (such as capital and labor) in producing goods and services. An increase in TFP means that the same unit of input is now capable of producing more output. This is a key indicator of technological progress and increased efficiency in an economy.
When Indonesia's economy grew by 8.2% between 1971 and 1975, it was due to total factor productivity ( TFP). Since 1998, TFP's contribution has declined, indicating that industrialization has weakened in terms of both volume and contribution to GDP. TFP can be boosted through strengthening research and development (R&D), thereby encouraging industrialization, which ultimately drives economic growth.

Read the full story here.

"Two Engines" of Green Economy to Achieve 8% Growth

Amidst the prevalence of disasters, there is a growing awareness of the need to implement a green economy. Not only does it create an economy that is in harmony with environmental preservation, but the green economy also has two "engines" that can be optimized to drive economic growth by up to 8%. These two engines are investment in the green economy and Indonesia's carbon market. Mitigating climate change through manufacturing and carbon trading are two key strategies for Indonesia to increase its appeal to foreign investors who are more interested in the green economy.

Read the full story here.

Indonesia-EAEU Trade Agreement to be Signed, Trade Value to Double

Indonesia is ready to sign the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA). With this trade agreement between Indonesia and countries across Europe and Asia, the target is to double the value of trade. This cooperation is expected to boost exports of agricultural products (CPO, coffee, cocoa) and resource-based manufacturing, as well as increase the competitiveness of Indonesian products such as textiles and electronics. The target date for signing the I-EAEU FTA is December 20-21, 2025, in St. Petersburg, Russia.

Read the full story here.

'Kilat Pajajaran' Considered More Optimal as a Freight Train

The plan to operate a new Jakarta-Bandung high-speed train called "Kilat Pajajaran," initiated by the West Java government and PT Kereta Api Indonesia (KAI), has sparked controversy. Various groups consider it inappropriate in terms of passenger demand amid fierce competition.
The Pajajaran Express Train, which will be inaugurated on November 25, 2025, will connect Jakarta and Bandung, cutting travel time to between 1 and 1.5 hours. The high-speed train service is also planned for the Garut-Tasikmalaya-Banjar route, with an estimated travel time of around 2 hours.

Featured Video: D-Hub BSD International Health Services Optimistic About Attracting 100,000 Indonesian Citizens Seeking Medical Treatment Abroad

Prioritize Fintech for Productive Sectors

The trend of online lending continues to increase. However, the percentage of lending to the productive sector tends to decline. In order for online lending to be optimal in driving the economy and encouraging job creation, lending to the productive sector must be a priority. By August 2025, the amount of lending will reach a new peak of Rp 29,623.31 billion.
The percentage of lending to the productive sector peaked in February 2022 at 69% with a loan value of Rp 11,328.84 billion. However, this percentage continued to decline to only 20% in August 2025. This significant decline occurred even though the nominal amount of loans for the productive sector fluctuated relatively between Rp 5 trillion and Rp 9 trillion. This implies that the growth rate of loans for the consumptive sector was much faster than that for the productive sector, resulting in a smaller proportion of productive loans in the total fintech loans.

Read more here.

EKRAFTECH SUMMIT 2025. This event , organized by the Ministry of Creative Economy of the Republic of Indonesia, will return on December 16-17, 2025, at the Pullman Hotel, Jakarta. There will be a series of agendas aimed at opening new insights, accelerating collaboration, and encouraging innovation in Indonesia's smart mobility sector. Participants will explore the technology ecosystem through several main sessions, including Keynote Sessions, Panel Discussions focusing on Smart Mobility and the Technology Ecosystem, and an Innovation Challenge that includes exhibitions, demos, and pitching sessions. In addition, the event will also feature Networking Sessions and Award Sessions as platforms for exchanging perspectives, discovering opportunities, and connecting with industry leaders. Further information can be accessed directly through the official Instagram account of Ekraft Tech Summit 2025.

Round Table Discussion Calculating the Risks and Expectations of the Danantara Super Holding Company. The Nagara Institute will hold this event on Tuesday, December 16, 2025, at 9:00 a.m. Western Indonesian Time at the Bima 1 & 2 Ballroom, Sahid Raya Hotel & Convention Yogyakarta. This event aims to critically analyze the strategic direction, implementation challenges, and opportunities contained in the plan to form the Danantara Super Holding BUMN. This discussion will feature credible speakers and resource persons from various backgrounds, including academics, practitioners, and public policy observers. For further information, please visit AFU ID's Instagram account.

“You don’t learn to walk by following rules. You learn by doing, and by falling over.” (Richard Branson - British entrepreneur/Founder of Virgin Group)