Statistics Indonesia (BPS) reported Indonesia’s economy expanded by 5.12% YoY in Q2-2025, up from 4.87% in the previous quarter. Growth was mainly supported by household consumption, which rose 4.97%, and Gross Fixed Capital Formation (GFCF) or investment, which surged 6.99%. Together, these contributed 82.08% of GDP, signaling resilient domestic demand.
Exports climbed 10.67% on the back of non-oil and gas exports and higher foreign tourist arrivals, while imports grew 11.65% due to a rise in capital goods and raw materials, although they negatively affected net exports. Overall growth was underpinned by domestic demand and exports, with high imports weighing on the trade balance.
– Kontan, August 5, 2025
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Regulation PMK 56/2025 Takes Effect: Sri Mulyani Pushes Spending Efficiency to Fund Presidential Priorities
Finance Minister Sri Mulyani Indrawati issued Regulation No. 56/2025, effective August 5, 2025, to improve state budget efficiency without compromising President Prabowo Subianto’s priority programs. The policy mandates savings in ministry/agency (K/L) spending and transfers to regions (TKD) across 15 expenditure categories — from office supplies, meetings, training, consultancy services, to infrastructure.
The efficiency percentage will be set by the Finance Minister in line with the President’s directives, and ministries must submit their efficiency plans to Parliament. Savings will be redirected to fund presidential priorities, without affecting employee salaries, basic operations, or public services, and without terminating non-civil servant contracts before their expiry.
The regulation also details budget-unblocking mechanisms for salaries, office operations, public services, presidential priority activities, and revenue-generating programs, subject to presidential approval.
– Kontan, August 8, 2025
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BI Survey: Consumer Optimism Rises on Income and Job Expectations
Bank Indonesia’s Consumer Survey shows the July 2025 Consumer Expectation Index (CEI) rose to 129.6 from 128.9 the previous month, indicating stronger optimism for the next six months.
The gain was driven mainly by the Income Expectation Index (IEI), up to 136.4, and the Job Availability Expectation Index (JAEI), up to 125.0. Income optimism increased across all spending groups, with the highest among those earning over IDR 5 million, although it declined for those aged over 50.
– Kontan, August 8, 2025
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Bojonegara Port Secures Operating Permit, Set to Become a National Logistics Hub
State-owned port operator PT Pelabuhan Indonesia (Pelindo) Regional 2 Banten has received an operational permit for Bojonegara Port from the Ministry of Transportation under Decree No. A387/AL.308/DJPL. The multipurpose port can handle vessels and barges up to 80,000 DWT and is equipped with a concrete pier, beach point, container office, gate-in, and a 100 x 40-meter storage yard.
Pelindo targets Bojonegara as a key infrastructure for national maritime industrialization, managed professionally with cross-sector collaboration. Full support has come from the Ministry of Transportation, KSOP Class I Banten, the Navigation Office, and service users to ensure smooth operations, including during peak seasons such as Christmas–New Year 2025 and Eid 2026.
– Kontan, August 8, 2025
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Indonesia Issues First Kangaroo Bond Worth A$ 800 Million
For the first time, the Indonesian government has issued sovereign bonds in Australian Dollars through the Australian Medium-Term Notes (AMTN) program, known as Kangaroo Bonds, totaling A$ 800 million (around IDR 8.5 trillion). The issuance comprises two series: RIAUD0830, a 5-year A$ 500 million tranche with a 4.40% coupon (4.427% yield), and RIAUD0835, a 10-year A$ 300 million tranche with a 5.30% coupon (5.380% yield).
Finance Minister Sri Mulyani Indrawati described this inaugural issuance as a strategic move to diversify state budget financing, broaden the global investor base, and strengthen Indonesia–Australia economic ties. Australia’s Treasurer Jim Chalmers called it proof of the solid bilateral economic relationship.
Proceeds will fund the 2025 state budget. The bonds are rated Baa2 (Moody’s), BBB (S&P), and BBB (Fitch), with ANZ, Standard Chartered Bank, and UBS as Joint Lead Managers.
– Kontan, August 8, 2025
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Bappenas Launches Blue Food Assessment and Indonesia Blue Economy Index
Indonesia’s National Development Planning Ministry (Bappenas) has launched two strategic documents — the Blue Food Assessment (BFA) and the Indonesia Blue Economy Index (IBEI) — to strengthen aquatic food security and measure progress in sustainable blue economy development.
- BFA: Maps current conditions and management strategies for blue food to support national food security and sovereignty.
- IBEI: A comprehensive measurement tool for assessing inclusive and sustainable blue economy achievements.
The BFA was developed in collaboration with the EU, ERIA, Stanford University, and Microsave Consulting, while the IBEI was created with the EU as the main partner.
– Kontan, August 6, 20253