Month: September 2025

The rapid adoption of digital payment systems in Indonesia reflects not only technological advancement but also a profound cultural transformation in how society interacts with money. From purchasing daily necessities via QRIS (Quick Response Indonesia Standard) to executing instant interbank transfers through BI-FAST, digital payments have increasingly become part of everyday life. This evolution highlights a broader shift in behavior, where convenience, incentives, and habit often outweigh rational cost-benefit considerations, as explained through Behavioral Economics theories. Cashback rewards, transaction speed, and accessibility have made digital payments the default option for many Indonesians.

Statistical data underscores this momentum. As of July 2025, QRIS transactions rose 163 percent year-on-year, while BI-FAST recorded 414.6 million transactions, up 38 percent, with a total value of IDR 1 quadrillion—nearly half of Indonesia’s annual card transactions. Overall digital payments, including internet and mobile banking, reached 4.44 billion transactions, reflecting a 45 percent annual increase. Adoption is also expanding beyond urban centers, driven by initiatives like QRIS Tuntas, which enables withdrawals, transfers, and deposits, along with expanding financial infrastructure. Merchant participation has surpassed 38 million nationwide, with notable growth in regions outside Java, including Kalimantan (24 percent), Sulawesi-Maluku-Papua (24 percent), Sumatra (19 percent), and Bali-Nusa Tenggara (16 percent).

Indonesian consumers now demonstrate increasingly sophisticated payment behavior, selecting methods based on context. E-wallets are favored for small purchases, QRIS for face-to-face vendor transactions, and BI-FAST or virtual accounts for large-scale transfers. Despite this progress, challenges persist. Cybersecurity threats, data breaches, scams, misleading promotions, and limited digital literacy among the elderly and rural populations remain significant risks. By May 2025, the Financial Services Authority (OJK) received 18,339 consumer complaints, of which 38 percent were linked to fintech platforms and 37 percent to banking services. Strengthening trust will require robust regulation, improved cybersecurity, transparent fee disclosures, and comprehensive literacy programs.

Indonesia’s long-term digital finance agenda is framed by initiatives such as the Payment System Blueprint 2025 and ASEAN QRIS Cross-Border Payments. These programs aim to ensure secure, transparent, and inclusive adoption. Emerging innovations like biometric authentication, voice payments, and embedded finance are anticipated to shape the future, but policymakers emphasize that inclusivity must remain central. Efforts such as subsidized smartphones, affordable internet in rural areas, and community training programs are seen as necessary to bridge the digital divide.

At the international level, Indonesia is advancing QRIS expansion through cross-border partnerships. Following its launch in Japan in August 2025—coinciding with Indonesia’s 80th Independence Day—Bank Indonesia is preparing to pilot QRIS in China next month. This initiative, conducted in collaboration with China’s UnionPay International and the People’s Bank of China, will begin with an interconnection trial aimed at facilitating bilateral trade, especially for micro, small, and medium enterprises (MSMEs), while also supporting tourism.

QRIS already operates in Thailand, Malaysia, and Singapore, with Malaysia recording the highest number of transactions outside Indonesia—4.31 million valued at IDR 1.15 trillion since May 2023. Thailand and Singapore follow with nearly 1 million and 238,000 transactions, respectively. Future expansion targets include India and Saudi Arabia. These partnerships also complement Indonesia’s Local Currency Settlement (LCS) framework with trading partners such as Japan, which seeks to reduce reliance on third-party currencies and strengthen regional financial stability.

Overall, Indonesia’s digital payment ecosystem is evolving rapidly, symbolizing a cultural shift from cash to cashless and from traditional banking to digital-first solutions. The domestic adoption surge and cross-border expansion of QRIS underscore Indonesia’s ambition to position itself as a leader in digital finance. The challenge ahead lies not in whether people will adopt digital payments, but in ensuring that the system remains secure, transparent, and inclusive so that no community or demographic is left behind.

August 26, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/08/27/digital-payments-in-indonesia-a-cultural-shift.html) (https://www.thejakartapost.com/business/2025/08/26/qris-to-pilot-in-china-next-month-as-expansion-continues.html)

The annual Pacu Jalur boat race in Riau, Sumatra, has experienced an unprecedented surge in global attention and tourism, largely driven by the viral fame of 11-year-old Rayyan Arkan Dikha. Known for his distinctive dance performed on the prow of traditional longboats, Rayyan’s movements have captivated millions on social media, transforming a centuries-old cultural festival into an international spectacle.

This year’s competition, which culminated on Sunday, saw significantly larger crowds compared to previous editions. Authorities estimate that an additional 100,000 spectators attended, bringing the total audience to around 1.5 million people, including an increasing number of foreign visitors. The economic impact has also been substantial, with projected revenue reaching up to US$4.6 million, a considerable rise from last year’s US$2.5 million.

The boy’s viral popularity began with a 20-second clip that rapidly circulated online, inspiring celebrities and sports figures such as Formula One driver Alex Albon and MotoGP champion Marc Márquez to imitate his now-famous moves. The trend has fueled domestic and international interest in Pacu Jalur, with tourists like Australian visitor Duncan McNaught and Indonesian spectator Yuyun Kurnia traveling long distances specifically to witness the event.

Pacu Jalur itself holds deep historical significance. Dating back to the 17th century, the traditional wooden boats, known as “jalur,” were originally used for transporting goods and people before evolving into competitive vessels. Today, the races are held annually every August, coinciding with Indonesia’s Independence Day celebrations. In 2025, more than 220 teams from local villages and districts participated, competing for prizes totaling approximately IDR 900 million (US$55,000).

The five-day event from Aug. 20 to 24 generated an estimated economic impact of IDR 100 billion (US$6.5 million). The influx of visitors led to packed hotels, high flight bookings and record sales in food and souvenirs. Local businesses, from boat rental operators to food vendors and homestay owners, reported unprecedented earnings during the century-old festival.

Local residents expressed pride that the boy’s newfound celebrity has elevated the festival to international recognition. Young spectator Naysila Ayunita Sari described Rayyan’s ability to create a personal brand through his dances as “super cool,” while veteran attendee Frima, aged 35, highlighted the courage required to perform at the tip of a racing boat. The role of the “boat dancer” is not only symbolic but also intended to motivate the rowers during the strenuous race.

Authorities have seized the opportunity to improve the event’s organization and environmental management. Efforts included enhanced riverbank facilities and measures to curb illegal gold mining near the Kuantan River to reduce pollution. According to Roni Rakhmat, head of Riau’s tourism agency, the newfound global exposure is a breakthrough, as foreign spectators had rarely attended in previous years.

For the local community, the rapid transformation of Pacu Jalur into a world-recognized event is both surprising and gratifying. Long-time resident Frima reflected, “I never would have thought that all eyes are on this small place on the western side of Riau. I’m grateful Pacu Jalur is now known worldwide.”

August 24, 2025, The Jakarta Post

(https://www.thejakartapost.com/indonesia/2025/08/24/childs-viral-fame-draws-tourists-to-boat-race-in-riau.html)

(https://www.thejakartapost.com/business/2025/08/30/local-tourism-surges-on-viral-aura-farming-pacu-jalur-video.html)

Indonesia has achieved a historic milestone in sustainable aviation by launching Pelita Air’s inaugural Jakarta–Bali flight powered by Sustainable Aviation Fuel (SAF) derived from used cooking oil (UCO), locally known as jelantah. This initiative, led by PT Pertamina (Persero) in collaboration with the Ministry of Energy and Mineral Resources, aligns with President Prabowo’s priority program Asta Cita, which emphasizes energy security, independence, and clean energy transition.

According to Dadan Kusdiana, Secretary General of the Ministry of Energy and Mineral Resources, SAF represents not only an environmentally friendly solution but also a step toward strengthening national energy self-sufficiency. Pertamina stated that UCO-based SAF can reduce carbon emissions by up to 84 percent compared to fossil aviation fuel, offering the aviation industry a concrete pathway to lower its carbon footprint without compromising safety or performance standards.

The SAF, developed at Pertamina’s Cilacap Refinery Unit IV, meets both national standards outlined in Decree No. 70/2025 and international benchmarks ASTM D1655 and Defstan 91-091. To ensure reliable feedstock, Pertamina has established 35 collection points across strategic locations, encouraging public participation in UCO recycling by offering financial incentives. This community-based model not only supports sustainability but also improves waste management practices.

Pertamina’s journey toward SAF innovation began in 2021 in collaboration with the Bandung Institute of Technology (ITB). Early trials included a test flight with a Dirgantara Indonesia CN235-200 FTB aircraft on the Bandung–Jakarta route, followed in 2023 by a Garuda Boeing 737-800 test on the Jakarta–Solo–Jakarta route. These successful trials paved the way for today’s commercial application, confirming SAF’s readiness for broader use in Indonesia’s aviation sector.

KPI President Director Taufik Aditiyawarman emphasized that this development symbolizes a tangible step in Indonesia’s clean energy transition, proving the nation’s ability to produce future-ready aviation fuel domestically. He noted that Pertamina SAF, produced using co-processing technology with the locally developed Merah Putih Catalyst, not only meets but also exceeds global aviation safety requirements. For instance, its freezing point performs better than international standards, ensuring fuel stability even in extreme flight conditions.

Furthermore, Pertamina SAF has secured ISCC CORSIA international sustainability certification, validating it as the first Indonesian-produced sustainable bioavtur made from UCO. Plans are already underway to expand SAF production at Pertamina’s Dumai and Balongan refineries, broadening supply capacity.

Despite this milestone, challenges remain, particularly in advancing bioethanol development and strengthening inter-agency collaboration. While Indonesia has established itself as the world’s leading biodiesel producer, further innovation is required to replicate similar success in other bioenergy sectors.

Overall, the launch of SAF-powered flights demonstrates Indonesia’s leadership in sustainable aviation within Southeast Asia. It marks a significant stride toward reducing carbon emissions, enhancing energy independence, and positioning the country at the forefront of the global green energy transition.

August 23, 2025, detikFinance

(https://finance.detik.com/energi/d-8073578/pertama-di-indonesia-minyak-jelantah-jadi-bahan-bakar-pesawat)

(https://finance.detik.com/energi/d-8075020/sejarah-maskapai-ri-terbang-pakai-bahan-bakar-olahan-minyak-jelantah)

Lake Toba has reaffirmed its position as a premier destination for international water sports with the successful hosting of two world-class events in August 2025. Following the Aquabike Grand Prix of Indonesia, which concluded with a victory by West Papua’s Boanerges Ratag in the Endurance category, the spotlight shifted to the F1 Powerboat Championship held from August 22 to 24 in Balige, North Sumatra. Ratag’s achievement not only demonstrated Indonesia’s athletic potential but also motivated organizers to enhance preparations for upcoming global competitions.

The F1 Powerboat 2025 was organized by InJourney through its subsidiary, the InJourney Tourism Development Corporation (ITDC), with operational support from InJourney Aviation Services (IAS). IAS played a central role in managing cargo logistics, hospitality, and facility services for international racers and teams. Seventeen containers, totaling more than 91,000 kilograms, were transported from Belawan Port to Balige by land and carefully processed through customs inspections. Beyond technical support, IAS incorporated “local heroes” from nearby communities to deliver services infused with Indonesian warmth and hospitality, ensuring a memorable experience for participants and spectators.

IAS Commissioner Danang Parikesit emphasized that this involvement reflects a broader mission to support sustainable tourism development in Lake Toba. By combining international-standard services with community participation, the event sought to enhance both visitor experience and local economic impact. This initiative aligns with the government’s vision of strengthening Lake Toba’s role as a Super Priority Tourism Destination (DPSP).

The event also showcased the synergy between global achievement and national identity. The influx of tourists and international attention highlighted Lake Toba’s natural beauty, cultural richness, and potential as a hub for sports tourism. Organizers stressed that hosting such large-scale events not only promotes tourism but also contributes to local economic growth, providing direct benefits to communities around the lake.

International racers expressed admiration for the event and its setting. Defending champion Rusty Wyatt described Lake Toba as a special venue, noting that he enjoyed exploring the area beyond the competition itself. Similarly, 24-year-old racer Alberto Comparato praised the extraordinary hospitality of North Sumatra’s people, underscoring that the event’s appeal extends beyond the race to include cultural and scenic experiences.

Chairman of the Lake Toba GP Aquabike & F1 Powerboat 2025, Troy Warokka, highlighted notable improvements in preparation, organization, and public engagement compared to previous years. According to him, positive feedback from racers and teams serves as valuable capital for enhancing future editions of the event.

Overall, the Aquabike and F1 Powerboat competitions in August 2025 demonstrated Lake Toba’s growing reputation as an international sports tourism destination. The combination of world-class event management, strong community involvement, and the lake’s unique cultural and natural appeal positions it as a stage where Indonesia can showcase its global competitiveness while strengthening local economic resilience.

August 23, 2025, detikSport and detikSumut

(https://www.detik.com/sumut/wisata/d-8075782/pebalap-f1-powerboat-puji-keindahan-danau-toba)

(https://sport.detik.com/sport-lain/d-8073165/danau-toba-gelar-event-kelas-dunia-lagi-giliran-f1-powerboat)