Successive Cabinet Reshuffle, BI Rate Drops Again

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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.

SOE Minister's Seat Still Vacant, Signals Emerge of Merger with Danantara

Erick Thohir's shift to Menpora has drawn public attention and question marks. This is because the seat of the Minister of BUMN is now vacant and it is not certain who will replace him. Moreover, BUMN is currently being hit by the issue of merging with Danantara.
Erick Thohir - after being inaugurated by President Prabowo Subianto - admitted that he does not yet know who will replace him or become Acting Minister of SOEs. Minister of State Secretary Prasetyo Hadi also opened his voice regarding the possibility of merging SOEs into BPI Danantara. He explained that BPI Danantara is currently also still trying to reform management in a number of BUMNs. Even so, he did not dismiss the possibility of the merger.
In addition to Erick, President Prabowo Subianto also changed the composition of the cabinet. The President appointed Djamari Chaniago as Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam). This position was previously filled by Budi Gunawan - who was removed last week.

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BI Rate Drops 3 Months in a Row, Affirming Pro-Growth Monetary Authority

Complementing Finance Minister Purbaya Yudhi Sadewa's fiscal policy, the Board of Governors of Bank Indonesia (BI) announced a 25 basis points (bps) cut in the benchmark interest rate (BI Rate) to 4.75%. This move is a way for BI to increase economic growth through increased public spending, while encouraging banks with liquidity expansion to channel more credit.
Throughout this year, BI has lowered the benchmark interest rate five times with a total reduction of 125 basis points. Each reduction amounted to 25 basis points. The rate cuts were made in January, May, July, August, and September.
"The direction of BI's policy mix will be all out for pro-growth policies, maintaining inflation and rupiah exchange rate stability by encouraging economic growth, strengthening the structure of the payment system industry, and strengthening the resilience of payment system infrastructure," concluded Bank Indonesia (BI) Governor Perry Warjiyo.

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To Improve Competitiveness, Electric Car Import Incentives Will Not Continue

The government earlier this week officially stopped the 0% import duty incentive for electric cars entering Indonesia in a completely built up (CBU) form as of December 31, 2025. This is stated in the Minister of Finance Regulation (PMK) Number 62 of 2025 concerning the Second Amendment to the Minister of Finance Regulation Number 26/PMK.010/2022 concerning the Determination of the Goods Classification System and the Imposition of Import Duty Rates on Imported Goods.
The current rules of the game, the government provides incentives for CBU importation of electric cars until the end of December 2025 in the form of import duty exemptions as well as PPnBM and VAT relief. The condition is that the company receiving this incentive must carry out domestic production 1:1 of the number of CBU vehicles entering the domestic market.
Chairman of the Car and Motorcycle Equipment Industry Association (GIAMM) Hamdhani Dzulkarnaen Salim said that the performance of the local component industry was severely depressed due to the large number of imported electric car products. "This is the right policy. This is a new opportunity for the local industry to grow and be competitive again," he told SUAR in Jakarta, Wednesday (17/9/2025).

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Accelerating Geothermal Development, the Mainstay of Future Clean Energy

Indonesia's potential geothermal reserves reach 23.74 GW or 40% of the world's largest geothermal reserves. Currently, Indonesia has an installed geothermal power plant capacity of 2.71 GW or only about 11% of the potential. This large potential space makes geothermal the future of Indonesia's energy.
Chairman of the Indonesian Geothermal Association (API) Julfi Hadi stated that the advantages of geothermal as an energy source lie in three aspects. First, Indonesia's potential geothermal reserves reach 23.74 GW, or 40% of the world's geothermal reserves. Second, geothermal power plants (PLTP) can operate reliably for 24 hours continuously without constraints and are very efficient. Third, geothermal has the potential to contribute non-tax state revenue (PNBP) of Rp 426.5 billion per year.

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Fisheries Sector Stimulus Must Improve Fishermen's Fate

The fisheries sector is included in the 2025 economic stimulus package through employment programs. From the large maritime potential, the government wants to revitalize pantura ponds and modernize fishing boats to absorb more workers. Not only that, the stimulus must lead to the welfare of fishermen.
By 2023, there are more than 3 million workers or fishermen who depend on this sector for their livelihood. They are mostly in areas along the northern coastline or pantura of Java Island, which need greater attention. The production value of capture fisheries has consistently increased from IDR 180 trillion in 2019 to IDR 206 trillion in 2023, although it was corrected in 2020 due to the pandemic. The production value of aquaculture is also growing, although not as high as in the capture fisheries sector, from IDR 263 trillion in 2019 to IDR 272 trillion in 2023.

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9th Indonesia Next Summit AI Sharpening Youths: Telkomsel organized the 9th Indonesia Next Summit AI Sharpening Youths on Thursday (18/9/2025), at Soehanna Hall, South Jakarta. In this event, participants have the opportunity to get inspired, upskill, & connect with the best experts and talents in the digital field. This event will hold keynote sessions with industry practitioners, DigiTalks attended by inspiring speakers, to group pitching sessions and digital talent challenges. The event will also be enlivened by performances from GAC, Friday Noraebang, and Jakarta Youth Choir. For more information, please visit Indonesia_next social media.

Public Consultation Forum for the Deputy of SNSU - BSN: This event was organized by BSN (National Standardization Agency) on Thursday, (18/9/2025) at 09.00-16.00 WIB, at the SNSU-BSN Laboratory Auditorium. The forum aims to inform BSN SNSU service updates and discuss traceability needs in Indonesia for four main sectors. Namely, industry, food, environment, and health. The event will be attended and filled by representatives from relevant agencies such as the Ministry of Industry, POM Agency, Ministry of Environment, and Ministry of Health. Also present will be Y. Kristianto Widiwardono, Deputy for SNSU at BSN, who will open the event. Participants can attend offline at the public consultation forum, which includes a focus group discussion session with representatives of each sector.