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

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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.

Industry needs affordable gas prices and guaranteed supply

The depressed manufacturing condition is reflected in Indonesia's Purchasing Managers' Index (PMI) which continues to contract. The research released by S&P Global shows that Indonesia's PMI in July 2025 was at the level of 49.2. This continues the contraction position since April which was at 46.7; May 47.4; and June 46.9.
Chairman of the Natural Gas Users Industry Forum (FIPGB) Yustinus Gunawan said that natural gas is one of the main elements in the manufacturing production process. The share of natural gas costs in the production cost structure of the manufacturing industry can reach 15% to more than 50%. "So we need affordable natural gas prices and guaranteed supply," said Yustinus, Sunday (10/8/2025).

Bank Permata Chief Economist Josua Pardede assessed that in this situation, the Specified Natural Gas Price (HGBT) functions as an automatic stabilizer on the cost side. The set gas price is able to withstand the energy component of production costs, reduce input cost pressures, and help keep factory utilization from falling further when demand weakens. "In other words, HGBT provides a cushion on the cost side so that the decline in output does not deepen," he said.

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Opening New Opportunities in Peru and South America Market through IP-CEPA

Indonesian President Prabowo Subianto welcomes Peruvian President Dina Ercilia Boluarte Zegarra during a face-to-face meeting at the Merdeka Palace, Jakarta, Monday (11/8/2025). President Boluarte revealed a number of concrete steps to strengthen trade relations, including the signing of the Indonesia-Peru CEPA which allows Peruvian blueberry products to enter the Indonesian market, as well as the process of opening market access for pomegranates.
Chairman of the Indonesian Export Companies Association (GPEI) Benny Soetrisno said that automotive components are a mainstay commodity that has been exported to Peru and has the potential to be increased. In addition, crude palm oil (CPO) is also considered potential because it is the vegetable oil with the most competitive price.

Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, further explained that the IP-CEPA is more than just a goods trade agreement, its scope extends to the services sector, investment, and non-tariff measure discussions. Therefore, Faisal emphasized the need for an in-depth evaluation of various aspects of this agreement.

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More International Airports, Tourism Promotion Should be Intensified

The government has upgraded the status of 19 airports to international airports. This brings the total number of international airports to 36. This decision 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 addition of airports with international status in Indonesia. According to him, this step opens up more access and has the potential to significantly increase the number of tourist visits.
Aviation observer Alvin Lie explained data analyzed by the Indonesian Aviation Service Users Association (APJAPI) which shows that the number of airports with international status is currently ineffective in bringing in foreign tourists. Analysis of data on the movement of foreigners from 2023 to May 2025 shows that 90% of foreign passengers are concentrated in only two airports: Soekarno-Hatta (CGK) and Ngurah Rai (DPS).

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Receivables Financing is Still Pindar's Mainstay Product

Chairman of the Indonesian Joint Payment Fintech Association (AFPI), Entjik S. Djafar, said that financing receivables through invoice financing is an alternative solution that can help business owners maintain stable cash flow. Invoice financing is a financing method that utilizes unpaid invoices from customers as collateral.
Through this scheme, he said, business owners can get fresh funds, ranging from 70%-80% of the invoice value that can be used for operational needs, while the lender will hold the invoice as collateral for the funds that have been disbursed.

When the customer finally makes payment on the invoice, the funds received are then used to repay the loan to the lender. The main advantage of this scheme is not only the speed of disbursement, but also a more measurable level of risk thanks to the invoice collateral that has a clear source of payment.

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Retail Sales Maintained by Food and Fuel Sectors

From the Retail Sales Survey report released by Bank Indonesia (BI), the Real Sales Index (RSI) showed a trend that tends to be maintained, despite minor fluctuations at the beginning of the year and increased in March and April. The highest total index occurred in April with a value of 248.3 and the lowest in January with 211.5.
A significant increase occurred in March, which saw a rise in economic activity. This was triggered by the annual ritual of Ramadan and Eid al-Fitr shopping, as well as a series of long holiday weekends.

Sales of several categories of goods showed strong performance. The food, beverages and tobacco group has consistently had the highest index number among all categories, peaking in March with 350.6. The motor fuel category also showed a positive trend and is expected to reach its highest value in July with 114.2. This is driven by people's mobility which has returned after the mid-year holiday.

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National Forum of Financing Service and Microfinance: The Financial Services Authority (OJK) held the National Forum of Financing Service and Microfinance 2025 on Tuesday, August 12, 2025 at Bidakara Hotel, South Jakarta. This forum is an effort to encourage the contribution of the financing service business industry and microfinance institutions to the government's economic program. The event will be attended by OJK Chairman of the Board of Commissioners Mahendra Siregar. Not only that, the event which will start at 8.30 WIB will also present various speakers related to finance and capital. In addition to being held live, the event will also be broadcast online via Zoom and YouTube live stream.

ASEAN: Tariff and Trade Intelligence: ASEAN Tariff and Trade webinar to be held on August 12, 2025 aims to equip business players, both from the private and public sectors, with knowledge and decision-making skills. Participants will gain an in-depth understanding of US tariff information and its impact on exporters in the ASEAN region. This webinar is particularly relevant for Small, and Medium Enterprises (SMEs) as well as large corporations who want to maximize the platform's features to make trade decisions. The webinar will be held online via Zoom at 2pm (GMT+7) or WIB. Registration can be done through the form https://forms.office.com/r/jMRKf7zjTj, for more information about the ASEAN Tariff Finder webinar can be accessed through https://tariff-finder.asean.org.

"Smart people need stupid people to lead them. When the team consists of a bunch of scientists, it's best to have a farmer take the lead." (Jack Ma-founder of Alibaba)