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economic growth

Indonesia Economy Grows 5.12% in Q2 2025

by Priya Shah – Business Editor August 5, 2025

written by Priya Shah – Business Editor

Indonesia‘s Economy Expands by 4.87% in First Quarter of 2025

Jakarta, Indonesia – The Indonesian economy demonstrated continued growth in the first quarter of 2025, expanding by 4.87% year-on-year, according to official data released on May 5, 2025. This figure indicates a sustained, albeit moderate, recovery following global economic headwinds.

The growth was primarily driven by robust domestic consumption, particularly in the household sector, and a notable increase in investment. Government spending also contributed positively to the overall economic performance. Key sectors showing critically important expansion included manufacturing, transportation, and interaction.

Bank Indonesia (BI), the central bank, has maintained a relatively stable monetary policy throughout the quarter, wiht the benchmark 7-Day Reverse Repo Rate remaining at 6.00%. This policy aimed to balance supporting economic growth with controlling inflation, which stood at 2.8% in April 2025, remaining within BI’s target range of 2.5% – 4.5%.

exports experienced a slight contraction due to weaker global demand, particularly from China and the United States. However, the Indonesian government is actively pursuing diversification of export markets, focusing on strengthening trade ties with countries in Southeast Asia, the Middle East, and Africa.

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government remains optimistic about achieving its full-year economic growth target of 5.0% – 5.4% for 2025. He emphasized the importance of continued structural reforms, including improvements in infrastructure, human capital development, and the business climate.

Analysts at Mandiri Sekuritas predict that the growth momentum will continue in the coming quarters, supported by increased infrastructure spending under the National Strategic Projects (PSN) initiative and a projected recovery in global commodity prices. The PSN includes projects such as the construction of the nusantara Capital City in East Kalimantan and the expansion of toll road networks across Java and Sumatra.

The Indonesian Rupiah (IDR) has shown relative stability against the US Dollar, trading at around 16,000 IDR per USD as of May 5, 2025. This stability is attributed to BI’s intervention in the foreign exchange market and the country’s healthy foreign exchange reserves, which currently stand at approximately $140 billion.

Looking ahead, potential risks to Indonesia’s economic growth include geopolitical uncertainties, fluctuations in global commodity prices, and the potential for further disruptions to global supply chains. the government is closely monitoring these risks and implementing measures to mitigate their impact.

August 5, 2025 0 comments

Business

India’s Next Big Bet: Uday Kotak on Manufacturing and Economic Growth

by Priya Shah – Business Editor August 3, 2025

written by Priya Shah – Business Editor

Uday Kotak Urges Focus on Manufacturing as Key to IndiaS Economic Ascent

During a compelling conversation with Arnab Goswami, Editor-in-Chief of Republic Media Network, banking veteran and entrepreneur Uday Kotak delivered a powerful message regarding India’s economic future. As part of the “Legends” series,Kotak cautioned against an overemphasis on technology,arguing that a robust manufacturing sector represents a more substantial opportunity for sustained growth and widespread employment.

Kotak passionately asserted that while technological advancements are undeniably crucial, they shouldn’t eclipse the foundational role of manufacturing. He believes a thriving manufacturing base is critical for India to achieve its full economic potential and generate meaningful job opportunities. “True national greatness will stem from entrepreneurship, but that entrepreneurship must be anchored by a strong manufacturing foundation,” he emphasized.reflecting on his own entrepreneurial beginnings in 1985, Kotak lauded the current surge in Indian startups, fueled by increased access to funding and private equity. Though, he tempered this optimism with a note of caution, stressing the need for rigorous process management and effective talent motivation alongside the initial excitement of launching a new venture.

Kotak also highlighted the enduring influence of cultural values on business success. He drew upon his upbringing in a large, 60-member joint family, explaining how the experience instilled in him the importance of collaboration, resilience, and the value of collective effort – lessons he continues to apply in his professional life.

His outlook aligns with a growing consensus among industry leaders that while technology is vital, bolstering manufacturing capabilities is paramount to unlocking India’s economic promise.Kotak’s message is prompting a re-evaluation of investment strategies and policy priorities,with a renewed focus on establishing India as a leading global manufacturing hub.

The discussion sparked by Kotak’s insights is expected to reshape approaches to economic growth, prioritizing long-term, sustainable growth over short-term speculative gains.

This installment of Republic Media Network’s “Legends” series – which has previously featured tennis star Leander Paes and musician Ustad Amjad Ali Khan – celebrated Kotak’s transformative impact on Indian banking and his inspirational leadership in the entrepreneurial world. The session was presented by ravin Group and co-powered by Radico khaitan and Reliance Digital, delving into Kotak’s legacy, his vision for India’s entrepreneurial landscape, and his conviction that lasting economic prosperity is built on innovation and enterprise.

August 3, 2025 0 comments

Business

Singapore Vaping Incident: Primary School Student Targeted by Teenagers

by Priya Shah – Business Editor July 31, 2025

written by Priya Shah – Business Editor

Singapore School Alerted After Vaping Attempt on Student

A primary school student in Singapore was approached by two teenagers attempting to sell an e-vaporiser near their school premises, prompting an alert to parents and increased vigilance from the school.

The incident occurred on July 25 as a Primary 4 pupil from Fairfield Methodist School (Primary) was walking home. The two teenagers approached the child at a zebra crossing along Dover rise, but the pupil declined the offer and continued on their way. The school’s principal, Soh Mei Foong, confirmed that the incident was reported to the authorities and that students were reminded about stranger danger and to report any suspicious encounters to trusted adults. The school also stated it would monitor the area around it’s premises after school hours.

News of the encounter spread among parents through chat groups, with many expressing concern for student safety and urging vigilance. One parent mentioned that students were informed during a morning assembly on July 28 that a police report had been filed. The parent also voiced concerns about the potential dangers of vaping, particularly with products like Kpods, which are known to be laced with synthetic drugs and can cause severe health effects.

July 31, 2025 0 comments

Business

Turkey Economy Update: Simsek Highlights Positive Cycle and Inflation Targets

by Priya Shah – Business Editor July 27, 2025

written by Priya Shah – Business Editor

Here’s a breakdown of the provided text, focusing on the key points and themes:

Overall Theme: The text is a report on statements made by Mehmet Şimşek, likely a government official (given the context of inflation, monetary policy, and taxes), discussing the economic situation and government policies.

Key Points and Themes:

Inflation:
Şimşek acknowledges inflation is at 29% this year. He states they will keep inflation within the estimation range and advises people to adjust their accounts accordingly.

Monetary Policy and Economic Outlook:
Şimşek notes that monetary policy is within limits.
He mentions that supply-side policies are being developed to address issues.
He believes Turkey has entered a “positive cycle” where financial conditions have improved and economic activity is expected to strengthen.
He highlights that “balances have entered a period in a positive way.”

Earthquake Zone Expenditures and Housing Supply:
Resources have been allocated to the earthquake zone.
Total expenditures for the earthquake, based on accrual-based prices, reached 3 trillion pounds.
The government is mobilizing to increase housing supply to address the rent problem, rather than relying solely on monetary policy. Taxation and Fairness:
Tax Burden Comparison:
Turkey’s ratio of all taxes and premiums collected is 23.5% (2023).
This is compared to 40% in the EU and 33.9% in OECD countries. Criticism of tax burden: Şimşek addresses criticism that the burden is placed on wages and not on companies.
Corporate Tax: The ratio of corporate tax to national income is 3% in Turkey, very close to the EU’s 3.2%.
Tax Increases: Corporate taxes have been increased, but income tax has not.
Exchange Rate Protected Deposit (KKM): Initially, there were few taxes on KKM, but taxes have been introduced over time.
Tax Justice: Şimşek emphasizes that important steps are being taken to ensure tax justice.
informality: The government is struggling with informality and aims to increase voluntary compliance.
Tax Compromise: Şimşek clarifies that there’s a compromise institution for tax disputes, and reports can be re-examined if inaccurate. He states that no one can be forgiven for unpaid taxes.

Income Declarations by Profession (fight Against Off-the-Books Registration):
Şimşek provides examples of average monthly gross income declarations for various professions:
Actors, actresses, stunt performers: 157,265 pounds
Musicians, voice artists, presenters: 136,900 pounds
Pharmacists: 66,236 pounds
Markets: 10,149 pounds
Minibus drivers: 8,954 pounds
Female hairdressers: 4,729 pounds
male hairdressers: 3,633 pounds
He also mentions a restaurant’s gross income declaration of 20,329 pounds per month.
He highlights that 850,000 tradesmen are completely tax-exempt.
* The context suggests these figures are being used to encourage more accurate income reporting.

In essence, the text conveys a message of economic stabilization and government efforts to address key challenges like inflation, housing shortages, and tax evasion, while also highlighting a more positive economic outlook.

July 27, 2025 0 comments

Business

China’s Plan to Boost Service Consumption: Investment, Red Tape Cuts & Domestic Demand

by Priya Shah – Business Editor July 18, 2025

written by Priya Shah – Business Editor

China is committed to streamlining regulations and enhancing foreign investment over the next five years to stimulate service consumption. This strategic pivot aims to leverage domestic demand as a stable economic growth engine amidst global trade uncertainties.

Minister of Commerce Wang Wentao highlighted a “shortage of high-quality service on the supply side” despite the faster growth of service consumption compared to goods. To address this, China plans to “reduce some restrictive measures and enrich service supply” between 2026 and 2030, wiht a particular focus on sectors like healthcare and elderly care.

These remarks coincide with China’s efforts to bolster domestic consumption,seeking to offset the complexities in its trade relations,exacerbated by trade disputes initiated by U.S. President Donald Trump earlier this year.

Regarding U.S.-China economic ties, Wang stated, “China-US economic and trade relations have weathered many storms, and both sides remain significant economic and trade partners.” He emphasized that “Facts prove that ‘decoupling‘ is unfeasible.”

Wang also pointed out that in 2024, mainland China and Hong Kong together represented approximately 13.3 percent of global imports. This positions China as the world’s second-largest import market, closely trailing the United States, which holds a 13.6 percent share.

China’s economic strategy is increasingly focused on domestic consumption as a driver of growth, especially in the services sector. This shift is influenced by global trade tensions and a desire for greater economic resilience. The government’s commitment to reducing red tape and attracting foreign investment in services aims to improve the quality and availability of services, addressing a perceived supply-side gap. Key sectors like healthcare and elderly care are identified as priorities for development,reflecting demographic trends and evolving consumer needs within China. The nation’s significant role in global trade, as evidenced by its import market share, underscores its importance in the international economic landscape, even as it navigates complex bilateral relationships.

Q: What is China’s primary strategy for economic growth in the next five years?
A: China aims to boost service consumption by cutting red tape and attracting foreign investment, relying on domestic demand for growth.

Q: What is the main challenge identified in China’s service sector?
A: There is a shortage of high-quality services on the supply side, despite growing service consumption.

Q: Which sectors will China prioritize for service supply enrichment?
A: Healthcare and elderly care are specifically mentioned as priority sectors.

Q: What is China’s stance on “decoupling” with the U.S.?
A: China believes that “decoupling” is impossible and views the U.S. as an critically important economic and trade partner.

Q: How does China rank in global imports?
A: China is the world’s second-largest import market, with mainland China and Hong kong accounting for about 13.3 percent of global imports in 2024.

7 · Compliance & Disclaimers

This article provides facts on economic policy and trade. It does not constitute financial, health, or legal advice.

8 · Call-to-Action

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July 18, 2025 0 comments

Entertainment

The measures taken by the Bolojan government will put pressure on the economic growth, but will increase inflation

by Julia Evans – Entertainment Editor July 15, 2025

written by Julia Evans – Entertainment Editor

Fitch Warns Romania’s Austerity Risks Growth, Inflation

Fiscal Consolidation Plan Faces Scrutiny

Romania’s newly announced government consolidation plan, spearheaded by the Bolojan administration, could significantly impact the nation’s fiscal health and economic expansion, according to Fitch Ratings. The agency cautioned that proposed austerity measures might lead to a tangible reduction in real incomes and potentially fuel inflation.

VAT Hikes Fuel Inflation Fears

Fitch highlighted that a substantial portion of the anticipated revenue increase relies on hiking the standard Value Added Tax (VAT) by two percentage points to 21%, alongside consolidating lower VAT rates into an 11% quota. This move is expected to exacerbate inflationary pressures, further diminishing purchasing power for citizens.

“A significant fiscal consolidation will put pressure on the economic growth, and the risks of implementation cannot be excluded. More than half of the additional revenues provided for this year come from the increase of two percentage points of the standard VAT rate, to 21% and from the unification of 5% and 9% in a single quota of 11%. This will generate a greater inflation, which will further erode real income.”

—Fitch Ratings

Revised Forecasts Due Mid-August

The international rating agency confirmed that its upcoming revised fiscal forecasts, slated for release on August 15, will incorporate the effects of Bucharest’s latest consolidation package. This signals a close watch on the practical outcomes of the government’s fiscal strategy.

Political Stability Improves, But Risks Remain

Fitch also acknowledged an improvement in political risk since late 2024, noting that the previous government had also introduced a consolidation plan amidst heightened tensions following the annulment of presidential elections. This suggests a more stable political landscape for implementing fiscal reforms.

Despite this, all three major credit rating agencies—S&P Global Ratings, Moody’s, and Fitch—have maintained a “negative” outlook on Romania’s sovereign rating. This precarious positioning places the country on the verge of a “junk” investment rating, a status generally considered unfavorable for global investors.

In comparison, Portugal’s VAT rate on food, excluding restaurant services, remains at a reduced 6%, demonstrating varied approaches to fiscal policy and consumer impact across European nations (European Commission, 2024).

July 15, 2025 0 comments

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