TGIF Monthly Wrap: August 2025

• Senate Approves Trump’s Bill, CDIA Raises Rp2.37 T, Indonesia-US Tariff Reduction, Indonesia Plans US$8 B Refineries with KBR, JPMorgan in Talks to Acquire Apple Card Program

By Fayza Nawra Avanitanya, Muthia Noor Safitri, Kenzie Aryasatya, Imam Fakhri Prayogo Harianto

August 29, 2025 at 16:30 GMT+7

Danantara Indonesia memfasilitasi kerja sama antara PT Pertamina dan PT PL  | Source: PLN

Pertamina and PLN Sign Major Geothermal Agreement

Pertamina and PLN signed an MoU to jointly develop a 530 MW geothermal project across Java, Sumatra, and Sulawesi. Pertamina Geothermal Energy will execute 440 MW under a split scheme with managing upstream operations and PLN handling downstream development, while 90 MW will be co-developed.

Facilitated by Danantara, this collaboration supports Indonesia’s 2060 net-zero emissions target and 2025 renewable energy goals. The project enhances energy security, creates jobs, and promotes sustainable development, positioning Indonesia as a regional geothermal leader and future green energy exporter through strong SOE partnerships and investment-driven growth.

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A financial board in Tokyo on Wednesday (8/13), shows the 225-issue Nikkei Stock Average at a record closing high of 43,274.67. | Source:Kyodo

Japan’s Nikkei Breaks All-Time High at 43,000 Following US-China Tariff Suspension

Japan’s Nikkei 225 surged past 43,000 for the first time, closing at 43,274.67, driven by gains in energy, technology, financials, and exporters. Investor optimism surged, led by the 90-day suspension of US-China tariffs that eased the trade tensions. A weaker yen boosted export competitiveness, lifting major manufacturers and semiconductor stocks.

Strong corporate outlooks, including Toyota’s raised profit forecast, reinforced confidence. However, the market may be overheated amid risks from trade uncertainties, global slowdown, and currency volatility. Future momentum depends on the Bank of Japan’s policies and domestic inflation trends.

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ndonesia's Central Bank Governor Perry Warjiyo arrives for a press conference along with his deputies, at Bank Indonesia's headquarters in Jakarta, Indonesia | Source:REUTERS (Willy Kurniawan)

Indonesia Makes Unexpected Rate Cut Following Robust Economic Data

Bank Indonesia unexpectedly cut its benchmark interest rate by 25 basis points to 5.00%, marking the first consecutive cuts in this easing cycle. Supported by subdued inflation, a stable rupiah, and strong Q2 economic growth of 5.12%, the move signals confidence in Indonesia’s economic resilience.

The central bank raised its 2025 growth forecast to 5.1%, reflecting robust domestic demand and investment. Coordinated with the government’s ambitious 2026 growth and budget plans, this policy shift aims to sustain growth amid global uncertainties, balancing monetary easing with fiscal support to strengthen Indonesia’s medium-term development outlook.

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Intel headquarters in Santa Clara, California.  | Source: Justin Sullivan via Getty Images

US Government Acquires Strategic Equity Stake in Intel

The US government has acquired a 10% equity stake in Intel, marking its first direct ownership in a major technology firm. The initiative is designed to bolster the US technological capacity and reinforce national resilience in semiconductor production, thereby helping to secure America's technological edge.

By backing Intel, the US government seeks to counter China’s rapid chipmaking rise and reinforce America’s global leadership in advanced technologies. The investment highlights the government’s broader strategy to secure critical industries, enhance economic resilience, and position the US at the forefront of the semiconductor race that anchors modern innovation and national security.

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Source:

CNN

BBC

Bloomberg

Reuters

Tempo