Affordable Gas Prices, Export Opportunities to Peru, and More International Airports

Good morning Chief,
Here are today’s key updates on the business landscape, curated by the SUAR team.

Industry Calls for Affordable Gas Prices and Supply Assurance

Indonesia’s manufacturing sector remains under pressure, as reflected in the Purchasing Managers’ Index (PMI), which stayed in contraction at 49.2 in July 2025, following April (46.7), May (47.4), and June (46.9), according to S&P Global.
Yustinus Gunawan, Chairman of the Forum of Natural Gas Users (FIPGB), emphasized that natural gas is a key component in manufacturing production, accounting for 15% to over 50% of production costs. “Affordable gas prices and reliable supply are essential for us,” Yustinus said on Sunday (Aug 10, 2025).

Permata Bank Chief Economist Josua Pardede highlighted that the Special Natural Gas Price (HGBT) functions as an automatic stabilizer on the cost side. The policy helps cap energy expenses, ease input cost pressures, and sustain factory utilization amid weakening demand. “In other words, HGBT cushions costs, preventing output declines from deepening,” he explained.

Tapping Into Peru and South American Markets Through IP-CEPA

President Joko Widodo hosted Peruvian President Dina Ercilia Boluarte Zegarra at the Merdeka Palace, Jakarta, on Monday (Aug 11, 2025). Boluarte outlined concrete steps to boost trade ties, including signing the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA), which will allow Peruvian blueberries into Indonesia, alongside discussions to open market access for pomegranates.
Benny Soetrisno, Chairman of the Indonesian Exporters Association (GPEI), noted that automotive components are already being exported to Peru and have room for growth. Crude palm oil (CPO) is also seen as highly competitive among vegetable oils.

Mohammad Faisal, Executive Director of CORE Indonesia, stressed that IP-CEPA extends beyond trade in goods, encompassing services, investment, and non-tariff measures. He urged a comprehensive evaluation of the agreement’s broader implications.

The government has upgraded the status of 19 airports to international airports, bringing the total number to 36. The move follows President Prabowo Subianto’s directive to maximize revenue in the tourism sector.
Chairman of the Indonesian Tourism Industry Association (GIPI), Hariyadi Sukamdani, welcomed the expansion, noting that it opens broader access and has strong potential to significantly boost tourist arrivals.
Aviation expert Alvin Lie, however, highlighted analysis by the Indonesian Air Transport Users Association (APJAPI) showing that the proliferation of international airports has not been effective in attracting foreign visitors. Data from 2023 through May 2025 indicates that 90% of foreign passenger traffic remains concentrated in just two airports: Soekarno-Hatta (CGK) and Ngurah Rai (DPS).

Chairman of the Indonesian Joint Payment Fintech Association (AFPI), Entjik S. Djafar, said invoice financing remains a key alternative solution for businesses to maintain stable cash flow. The method uses unpaid invoices as collateral for financing.
Under this scheme, business owners can access 70–80% of the invoice value to fund operational needs, while lenders hold the invoice as security against the funds disbursed.

When customers finally make payment on the invoice, the funds received are then used to repay the loan to the financier. The main advantage of this scheme lies not only in the speed of disbursement but also in the more measurable level of risk, thanks to the invoice collateral with a clearly defined source of payment.

Retail Sales Remain Stable, Driven by Food and Fuel

Bank Indonesia’s (BI) Retail Sales Survey shows that the Real Sales Index (RSI) remains relatively stable despite minor fluctuations earlier in the year, with an uptick in March and April. The highest index was recorded in April at 248.3, while the lowest was in January at 211.5.
A sharp rise occurred in March, reflecting increased economic activity, fueled by seasonal spending ahead of Ramadan, Eid al-Fitr, and the long holiday weekends.

Strong performance was recorded in several product categories. Food, beverages, and tobacco consistently posted the highest index values, peaking in March at 350.6. Motor fuel sales also showed positive growth and are projected to reach a peak in July at 114.2, supported by higher mobility following the mid-year holidays.

National Forum of Financing Service and Microfinance

The Financial Services Authority (OJK) hosted the National Forum of Financing Service and Microfinance 2025 on Tuesday, August 12, 2025, at Hotel Bidakara, South Jakarta. The event aims to strengthen the contribution of financing service providers and microfinance institutions to government economic programs.
The forum was attended by OJK Chairman Mahendra Siregar and featured various speakers on finance and capital topics. In addition to the in-person event starting at 8:30 AM WIB, the forum was also streamed online via Zoom and YouTube.

ASEAN: Tariff and Trade Intelligence

The ASEAN Tariff and Trade Webinar on August 12, 2025, is designed to equip business players—both private and public sector—with insights and skills to make informed trade decisions. Participants will gain a deeper understanding of U.S. tariff information and its implications for ASEAN exporters.
The online session, relevant for SMEs as well as larger corporations, will be held via Zoom at 2:00 PM (GMT+7). Registration is available through this form, while more details about the ASEAN Tariff Finder platform can be accessed at https://tariff-finder.asean.org.

Intelligent people need a fool to lead them. When the team’s all a bunch of scientists, it is best to have a peasant lead the way. His way of thinking is different. It’s easier to win if you have people seeing things from different perspectives. (Jack Ma, founder of Alibaba)