We attended ASII’s analyst call, wherein the management mentioned that the weak purchasing power has affected ASII’s automotive performance,

The government will hold another conventional bond auction on 6-May, targeting Rp26tn, with a maximum issuance of up to 150% of the target (same as the previous auction).

Despite lingering downside risks to 2Q25 EPS, equity valuations remain discounted and reflect much of the pessimism already.

We now set conservative ROE forecasts of 9.3%-10.0% in 2025-27F and retain our BUY rating with new PT Rp1,380. More meaningful ROE recovery depends on benchmark rate cuts, but several positive developments add quality to current ROE trajectory i.e.

Slower growth. GDP growth moderated to 4.9% in 1Q from 5.0% in 4Q, broadly in line with expectations (It’s marginally lower by two digits than expected – Actual: 4.87%, Mansek: 4.91%, Consensus: 4.92%), led by softer domestic demand (Exhibit 1).

Dec-24 saw weak domestic vol with the industry’s falling -12% yoy. INTP did a commendable +2.6% yoy, off a comparable base with Semen Grobogan inclusion beginning Dec-23, helped by bulk cement.

FY24 Net Profit of Rp54.8tn, up 13% YoY and forming 99%/100% of our/consensus’ FY24 Net Profit expectations. The steady FY24 net profit growth was backed by strong net interest income growth, stable non-interest income growth, and opex efficiency.

The latest Indo banks stock price rebound was driven by improving liquidity expectations and cost of equity outlook. Since hitting bottom on 14 Jan 2025, the Big 3 SOE banks have rebounded by 13%-16% until today while BBCA only rebounded by 1%.

Efficiency measures in effect. On 23 January, President Prabowo issued an instruction on government spending efficiency (No. 1/2025).

AHI concluded full-year 2024 with a solid SSSG of 8.8%, in line with the revised guidance of ≥8%.

A sense of déjà vu? Dollar has regained strength recently, driven by better-than-expected US economic data and flight to safety amid renewed geopolitical risks in the Middle East.

The rupiah government bonds continued posting positive returns in September, marking the fifth consecutive month of gains, totaling 5.91%.