Startup Industry, KUR Relaxation, and the Kramat Jati Fire

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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.

Continuing to Innovate, Startups Hope for Regulatory Certainty

On Tuesday (12/16/2025), technology-basedstartup entrepreneurs hoped that the government would create regulatory certainty and a more friendly growth ecosystem so that startups could more freely contribute to pursuing the 8% economic growth target. Even Alex Chandra, Head of Regulatory & Logistech at the Indonesian Venture Capital Association for Startups (Amvesindo), said that regulatory certainty would help startups expand their sources of financing, while a friendly ecosystem would pave the way for more impactful innovation.
If such regulatory characteristics are not immediately corrected and a friendly growth ecosystem is not realized, Alex is concerned about the immediate consequences, namely sluggish startup growth, followed by a brain drain of Indonesian digital talent to countries that are more supportive and appreciative of them.

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Victims of the Sumatra Disaster Receive Three-Year KUR Relief

The government will provide relaxation of small business credit (KUR) distribution to three provinces affected by flooding in Sumatra within three years. Currently, the areas affected by the disaster are Aceh, North Sumatra, and West Sumatra. The government is drafting government regulations (PP) in these three provinces. The government is also mapping the impact of the disaster on KUR debtors. The KUR relaxation will be carried out in two phases, with the first phase running from December 2025 to March 2026. In the first phase, debtors will not make any installments, lenders will not receive any installments, and guarantors or insurers will not file any claims. The second phase involves relaxing the obligations of existing KUR borrowers whose businesses cannot be continued at all, with a relaxation period and the potential for debt forgiveness. For new KUR borrowers, a 0% interest rate will be applied in 2026. In 2027, the rate will be 3%, and in subsequent years, the normal interest rate of 6% will apply.

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Prevent Inflation and Distribution Disruption, Immediately Handle the Fire at Kramat Jati Central Market

A major fire engulfed 350 stalls at the Kramat Jati Central Market in East Jakarta on Monday (12/15/2025) morning, allegedly caused by an electrical short circuit. The losses from the incident are estimated to reach between Rp 10 billion and Rp 30 billion. Not only causing physical damage, the fire at the market, which supplies commodities to markets in the Greater Jakarta area, could potentially trigger inflation. The primary function of the Kramat Jati Central Market is as the main wholesale distribution center for fresh products such as fruits and vegetables, serving all of Jakarta and Jabodetabek, acting as the hub for essential goods supply, connecting farmers directly to small retailers, and playing a role in commodity price formation through its 24-hour operations.

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Energy Transition Strategy Drives Economic Growth

On Tuesday (16/12), a number of experts proposed several comprehensive strategies to ensure that the energy transition does not hinder economic growth. Some of the strategies proposed include expanding financing and preparing human resources. Senior economist at Bank Tabungan Negara, Winang Budoyo, stated that bilateral financing cooperation should be established with countries that have been relatively successful in implementing energy transitions, such as Germany, the Netherlands, and Poland. Meanwhile, human resources play a role in ensuring that the transition does not stop at decarbonization, but is followed through until renewable energy becomes the backbone of all energy generation.

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Indonesia-Eurasia Trade Agreement Strengthens Export Product Diversification

The signing of the Free Trade Agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU), planned for December 21, 2025, in Russia, is an important moment for trade relations between the two parties. This agreement opens up opportunities to increase export performance to EAEU countries. Based on data from the Central Statistics Agency (BPS), Indonesia experienced a trade deficit with EAEU countries during the 2020-2025 period. This was driven by high imports of fertilizers and mineral fuels from the EAEU, while Indonesia's exports were dominated by palm oil.
The momentum of the signing of this agreement should be seen as a strategic opportunity to reformulate the trade structure, particularly to expand Indonesia's non-traditional export markets to EAEU member countries, especially those other than Russia. Indonesia's trade balance with the EAEU shows a trade deficit in 2020 of US$244.664 million. In 2022, the deficit increased to US$1,361.88 million. Potassium chloride (natural salt) as the main import commodity experienced an increase in import value of up to 48.9% compared to 2021.

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Energy Outlook 2026. The Association of Mineral and Coal Energy Suppliers (Aspebindo) is collaborating with the BPP Hipmi Energy Task Force and the East Java Provincial Government to organize this event on Wednesday, December 17, 2025, from 9:00 a.m. to 6:30 p.m. WIB at the West Java Ballroom, The Westin Jakarta. This forum aims to strengthen the resilience of Indonesia's energy supply chain by bringing together national leaders, regulators, and industry players. Keynote speakers will include prominent figures such as Anggawira, Sandiaga Uno, Sultan Baktiar Najamudin, and Emil Elistianto Dardak. The event agenda is divided into three crucial panel discussions, including Security & Efficiency in the Fossil Energy Supply Chain, Bioenergy Financing for Sustainable Growth, and Energy Distribution and Community Development Through Collaborative Action. Further information can be accessed directly through Aspebindo's Instagram.

The Bank Indonesia (BI) Board of Governors' Meeting (RDG) in December 2025, which is , will be held on December 16-17, 2025, and the results of the meeting will be announced on Wednesday, December 17, 2025, at 2:00 p.m. Western Indonesian Time. At this meeting, the members of the Bank Indonesia Board of Governors will conduct a comprehensive evaluation of the global and domestic economic, monetary, and financial system stability conditions. The results of this RDG are eagerly awaited by the market as they will determine the direction of future monetary policy, including the setting of the benchmark interest rate (BI Rate), which has a direct impact on borrowing costs, inflation, the rupiah exchange rate, and national economic growth. The announcement of the results will be broadcast via Bank Indonesia's Instagram and YouTube social media channels.