An injection of optimism after riotous protests

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.

Three Stimulus to Guard Quarter Three

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government will soon realize three stimulus programs. First, revitalization of credit for labor-intensive industries. Second, people's business credit for the housing sector by increasing the Housing Financing Liquidity Facility (FLPP) from 220,000 to 350,000 housing units, implementing VAT DTP 100, and self-help housing stimulant assistance for 41,000 houses. Third, the acceleration of the Free Nutritious Meal (MBG) program by targeting 25,000 units of nutrition fulfillment service units (SPPG) with 75 million recipients in November 2025.
In addition to these programs, the government has also established a Labor Welfare Council and a Layoff Task Force to ensure worker welfare and open employment opportunities. Lastly, the government also provides tourism stimulus through the provision of national events, bundling of tour packages, and discounts on transportation tariffs for trains, ships, and toll tariffs ahead of the Christmas and New Year holidays in 2025-2026.
On the first day of September 2025 and after last week's chaotic rally, businesses welcomed the positive start indicated by Indonesia's August 2025 Purchasing Managers Index (PMI) reaching 51.5%, marking the first expansion in five months. This was up from July's PMI of 49.2%. An index reading above 50 indicates expansion, while below 50 indicates contraction.

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Kinclong Export Performance, Maintain with These Two Strategies

The Central Statistics Agency (BPS) reported that Indonesia's export performance in July 2025 reached US$ 24.75 billion, up 9.86% compared to July 2024. This export value was higher than the export value in June 2025 of US$ 23.44 billion. In total, Indonesia's exports in January-July 2025 reached US$ 160.16 billion, up 8.03% compared to the same period or year on year (YoY) in 2024. Meanwhile, Indonesia's import value from January to July 2025 reached US$ 136.51 billion, up 3.41 percent YoY. Thus Indonesia's trade balance from January to July 2025 experienced a surplus of US $ 23.65 billion. This is the 63rd consecutive month of trade balance surplus.

To boost export performance, the government must implement two strategies. The first strategy is to utilize existing trade agreements, because it is useless for Indonesia to keep adding trade agreements that are not utilized. Second, to boost exports is to diversify markets to new countries such as Africa. Most countries on this continent are experiencing stable economic growth so that they can be utilized.

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Riots Do Not Disrupt Food Stocks and Prices

The demonstrations that led to chaos in Jakarta from August 25 to August 31, 2025 did not disrupt food stocks and prices. Food supply in traditional markets and supermarkets remained under control. Only rice and curly red chili experienced price increases that had occurred before the demonstrations.
Suar.id monitored at Pasar Induk Senen, all major food commodities such as rice, shallots, red chilies, beef, chicken eggs, cooking oil and granulated sugar were available and there was no scarcity. Likewise, monitoring at the Farmers Market supermarket.
The Central Statistics Agency (BPS) reported that in August 2025, there was deflation of 0.08% compared to the previous month. Annually (yoy), there was inflation of 2.31 percent.

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Mitigating Climate Change: Awaiting the Presence of Carbon Storage Businesses

Along with its ambitious target to achieve net-zero emissions by 2060, Indonesia continues to push carbon storage technology as part of its climate change mitigation efforts. Carbon storage, or more fully carbon capture and storage (CCS), is the process of capturing carbon dioxide (CO₂) emissions from sources such as power plants and industrial facilities, then storing them safely so they are not released into the atmosphere.
A number of companies from the manufacturing and energy sectors are innovating to create CCS facilities or activities. As the industrial sector is one of the contributors to emissions, they need to continue to innovate to create business processes that are increasingly environmentally friendly.

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Indonesia's Economy is Now More Resilient to Crisis

Fears of an economic crisis have returned following the wave of demonstrations that took place over several days from August 25 to August 31, 2025 in various regions. However, many argue that Indonesia's current economic fundamentals are much more mature and ready to face shocks compared to the conditions leading up to the multidimensional crisis of 1998.
The conditions that have occurred since the beginning of this year cannot be compared to the major economic crisis that occurred in 1998. In 1998, Indonesia experienced a monetary crisis triggered by massive foreign currency private debt. The current situation is different, where foreign debt is under control and national economic fundamentals are considered much more robust. Despite the decline in several indicators, such as the exchange rate and JCI, indicators of economic growth, foreign exchange reserves, foreign trade balance, Indonesian debt, and inflation are still maintained at relatively safe limits.

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Indonesia Human Capital and Beyond Summit (IHCBS) 2025: This event is organized by GNIK, QuBisa, Kompas.com, and ONE GML on September 2-3, 2025. Taking place at ICE BSD City, Tangerang, IHCBS 2025 is an important forum for HR practitioners and professionals to exchange knowledge and expand networks. During the 2-day event, there will be many classes with international speakers. To participate, participants can purchase tickets on the website https://www.qubisa.com/ihcbs. For more information on the event schedule, you can directly access the ihcbeyondsummit2025 website and social media.

Continued Demonstrations: From the information gathered, the demonstrations that have taken place since Thursday (27/8/2025), are expected to continue in Jakarta, on Tuesday, (2/9/2025). This action will involve various groups, including the Indonesian Student Executive Board (BEM SI), as well as peaceful actions from online motorcycle taxi drivers. The main points that will be the focus of the action are the Presidential Palace and the DPR / MPR RI Building. In addition, online motorcycle taxi drivers will conduct a convoy with a route that includes Monas, Kwitang, Kemayoran, to Sudirman. This demonstration activity has the potential to cause traffic congestion and diversions in various central areas, including Sudirman, HI Roundabout, and Medan Merdeka, so the public is advised to be aware of their travel routes.