Bank Indonesia (BI), together with the government, has reintroduced the burden sharing scheme to support President Prabowo’s priority programs, such as the construction of 3 million public housing units and the Desa Merah Putih Cooperative initiative. As of September 1, 2025, BI had purchased government securities (SBN) worth Rp200 trillion.
BI Governor Perry Warjiyo explained that the funds help maintain rupiah stability while also financing people-oriented economic programs. The interest burden is shared: 2.9% for public housing and 2.15% for cooperatives. The formula applied is the 10-year SBN yield minus government fund placements in banks, with the remainder split equally.
Finance Minister Sri Mulyani added that the government has placed Rp83 trillion in banks to finance the Kopdes Merah Putih program, with a ceiling of Rp3 billion per cooperative, a six-year tenor, a grace period of 6–8 months, and a fixed interest rate of 6%.
(Kontan, September 2, 2025)
Coal Exports Under Pressure, ESDM Confident on Non-Tax Revenue Target
Indonesia’s coal export performance weakened throughout 2025. Statistics Indonesia (BPS) recorded that during January–July 2025, exports reached only US$13.82 billion, down 21.74% from last year, with a volume of 214.71 million tons and an average price dropping 9.64% to US$64.37 per ton.
Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources (ESDM), Tri Winarno, explained that the decline was due to a surge in coal production in China and India, Indonesia’s main markets. Nevertheless, the government is promoting market diversification within ASEAN, targeting Vietnam, Malaysia, Thailand, and the Philippines.
(Kontan, September 3, 2025)
July 2025 Trade Surplus Inches Up, Oil & Gas Deficit a Drag
Indonesia’s trade surplus in goods for July 2025 stood at US$4.17 billion, slightly higher than June’s US$4.10 billion. The limited increase was driven by a higher non-oil & gas surplus, but offset by a widening oil & gas deficit.
Key details:
- Non-oil & gas surplus: up from US$5.22 billion → US$5.75 billion.
- Oil & gas deficit: widened from US$1.11 billion → US$1.58 billion.
- July exports grew +5.60% MoM and +9.86% YoY.
- July imports rose +6.43% MoM but fell -5.86% YoY.
(Kontan, September 1, 2025)
LPEM FEB UI: Middle Class, the Largest Taxpayers but Lacking Social Protection
Chaikal Nuryakin, economist at LPEM FEB UI, argued that government and parliamentary focus should not only target the bottom 40% through social programs but must also address the needs of the middle class.
Key reasons:
- The middle class is the largest voting bloc in Indonesia’s democracy.
- They are the main contributors to taxes and zakat.
- They remain vulnerable in times of crisis: though not poor, they often lack social safety nets.
(Kontan, September 4, 2025)
Red-and-White Cattle Program: A Symbol of Livestock Progress and National Nutrition
Minister of National Development Planning/Head of Bappenas, Rachmat Pambudy, described the Red-and-White Cattle Program as a symbol of national livestock advancement. The program focuses on improving the genetics of dairy cattle through collaboration between PT Moosa Genetika Farmindo and IPB, making cattle more disease-resistant and capable of higher milk yields.
He noted that the embryo transfer technology employed could become an agricultural revolution if widely applied to livestock and crops. The program also aims to strengthen smallholder farming by utilizing local germplasm adapted to tropical climates.
Rachmat emphasized that the Red-and-White Cattle Program aligns with President Prabowo’s Free Nutritious Meal (MBG) initiative, aimed at reducing stunting. He stressed that nutrition, education, and health must advance together: without clean water and adequate educational infrastructure, nutrition programs cannot be fully effective.
(Antaranews, September 4, 2025)
Sri Mulyani: Desa Merah Putih Cooperative Budget as Substitute for Village Funds
Finance Minister Sri Mulyani stated that Village Fund allocation in the 2026 draft state budget (RAPBN) is set at Rp60 trillion, down from Rp71 trillion in 2025. However, this reduction is offset by an additional Rp83 trillion allocated for the Desa/Kelurahan Merah Putih Cooperative (KDMP). The 2026 Village Fund will still focus on strengthening village economic institutions and supporting KDMP, including serving as a guarantee for cooperative loan repayment in case of default.
The KDMP budget will be channeled through state-owned Himbara banks to expand financing for village cooperatives. Sri Mulyani emphasized that although KDMP is labeled a national priority program, its implementation will take place directly at the village and sub-district levels.
(Antaranews, September 2, 2025)