Indonesia, US to Sign USD 34 Bn Deals Ahead of Trump Tariff Deadline

MACROECONOMY 
US Trade Deficit Widens to USD 71.5 Bn in May-25 as Exports Slide
Exports dropped 4% to USD 279 bn, retreating from April’s record high, with sharp declines in nonmonetary gold, natural gas, and metal shapes. Imports edged down 0.1% to USD 350.5 bn, a 7-month low, as lower purchases of accessories and metals offset gains in cars and pharma. Deficits widened notably with the EU (USD 22.5 bn), Mexico (USD 17.1 bn), Canada (USD 2.8 bn), and Vietnam (USD 14.9 bn), while the gap with China narrowed to USD 14 bn. (Trading Economics)

US ISM Services PMI Edges Up to 50.8 in Jun-25, Signaling Modest Expansion 
The ISM Services PMI rose to 50.8 in Jun-25 (vs 49.9 in May-25), slightly above forecasts of 50.5, indicating renewed expansion after a brief contraction. Growth was led by rebounds in business activity (54.2), new orders (51.3), inventories (52.7), and new export orders (51.1). Price pressures eased modestly (67.5 vs 68.7), although firms increasingly flagged rising operating costs. Middle East tensions appeared in comments but posed no reported supply chain disruptions. Tariffs remained the most cited concern, while backlogs continued to decline (42.4) and supplier deliveries slowed again (50.3). (Trading Economics)

Indonesia, US to Sign USD 34 Bn Deals Ahead of Trump Tariff Deadline 
Indonesia and the US are set to sign trade and investment deals worth USD 34 bn (IDR 551.1 tn) on 07 Jul-25, as part of efforts to finalize reciprocal tariff negotiations ahead of the 09 Jul-25 deadline set by the US. The include USD 15.5 bn (IDR 251.2 tn) in Indonesian investments in the US and purchases of American agricultural and energy products. The deal, involving Danantara and private firms, is part of Indonesia’s effort to avert a planned 32% US tariff on its exports. Final approval from the US is still pending. (Bisnis.com)

INDUSTRY 
Gov’t Set IDR 3 Bn Loan Ceiling for KopDes Merah Putih 
The Ministry of Cooperatives set a loan ceiling of IDR 3 bn per Koperasi Desa (KopDes) Merah Putih, to be funded by state-owned banks. The scheme carries 6% interest with a 6-year tenor, or 10 years for post-operational investment. The initiative aims to establish 80,000 village co-ops nationwide, with 92 pilot KopDes across 38 provinces starting 19 Jul-25. Funding sources include Himbara banks, LPDB, BPD, and KSP. (CNN Indonesia) 
 

Gov’t Raised KUR Housing Loan Cap to IDR 5 Bn 
The KUR housing program now allows loans up to IDR 5 bn, aimed at MSMEs and individuals for housing renovation or home-based businesses. Erick Thohir stated the scheme won’t strain Himbara banks’ liquidity and is open to all banks, including private ones. Funded under the existing IDR 300 tn national KUR cap, the program is backed by IDR 130 tn from Danantara. (CNBC Indonesia)

COMPANY 
Jasa Marga (JSMR) Injects IDR 9.6 Trillion into 6 Subsidiaries 
JSMR has injected IDR 9.6 tn into six subsidiaries via shareholder loans to support toll road projects. It is funded partly by the IDR 15.75 tn PT Jasa Marga Transjawa Tol (JTT)’s 35% divestment to Salim Group and GIC in 4Q24. This move boosted JSMR’s financials—raising its ICR from 2.71 to 3.81, while DER held at 1.06. Net profit in 1Q25 rose 49.48% YoY to IDR 927 bn. (Bisnis.com) 

Alamtri Minerals Indonesia (ADMR) Injected IDR 947.5 Bn into Aluminium Smelter Project ADMR, via subsidiary PT Alamtri Indo Aluminium (AIA), has injected IDR 947.5 bn into PT Kalimantan Aluminium Industry (KAI) to support the development of a 500,000 tpa aluminium smelter in North Kalimantan. The capital was used to acquire 947,497 new shares as part of KAI’s IDR 1.45 tn rights issue. The affiliated transaction marks early progress in ADMR’s IDR 4.91 tn smelter project. Post-transaction KAI ownership: AIA (65%), Aumay Mining (22.5%), Cita Mineral Investindo (12.5%). (Emitennews)