Indonesia Cuts Benchmark Rate to 5.0%

MACROECONOMY
Indonesia Cuts Benchmark Rate to 5.0%

BI cut its benchmark rate by 25 bps to 5.0% in Aug-25, following a similar cut in Jul-25 and marking the fifth cut since Sep-24. This is the lowest level since Oct-22, surprising markets that expected a hold. The move reflects confidence that 2025–2026 inflation will remain within the 2.5% ±1% target, alongside Rupiah stability and growth support. 2Q25 GDP grew 5.12% YoY, the fastest in two years, while Jul inflation rose to 2.37% (Jun: 1.87%), a one-year high but still within target. BI projects 2025 growth around 5.1%, slightly above the mid-point of its 4.6%–5.4% range. (Trading Economics)

INDUSTRY
Bank Indonesia Targets Cross-Border QRIS with China Fully Operational by End-2025

BI targets cross-border QRIS with China to be fully operational by end-2025 after a sandbox trial starting 17 Aug-25. The two-way integration will allow Indonesians to pay via QRIS in China and vice versa, involving BI, People’s Bank of China, ASPI, UnionPay International, and payment providers from both countries. The system is already connected to China’s two largest digital payment ecosystems, covering ±88% of users and 80% of merchants, complementing existing QRIS links with Thailand, Malaysia, Singapore, and Japan. (Investor.id)

COMPANY
BCAS: ACES IJ – Jul-25 Sales Trend Showing Early Signs of Recovery

• ACES SSSG in Jul-25 came in at -2.7% (vs -4.8% in Jun-25; 4.6% in Jun-24), showing meaningful improvement by the extended
  Boom Sales promotional campaign. This brought 7M25 SSSG to -2.9% (vs 9.8% in 7H24), with gradual recovery seen across regions.
• Jul-25 gross sales reached at IDR 735bn (5.6% MoM, +3.5% YoY), bringing 7M25 cumulative sales to IDR 5.0tn (+3.5% YoY). Recovery
  remains modest, but momentum is expected to improve in 2H25 with stronger seasonal demand.
• To boost performance the Co. launched “ Bebas Belanja Tanpa Batas ” in Aug-25 campaign to capture Independence Day demand,
  while adding 3 new stores in Jul-25, bringing 7M25 openings to 11 stores in total.

DCI Indonesia (DCII) Allocated IDR 1 Tn Capex in 2025

As of Jun-25, DCII posted revenue of IDR 1.33 tn (+80.96% YoY) with net profit of IDR 616.94 bn (+105.96% YoY). DCII allocated IDR 1 tn
capex this year for data center expansion in Surabaya and Cibitung, targeting total capacity of 119 MW. (Kontan)