Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in Indonesia from February. Let’s get started.
Indonesia economy update
- Indonesia’s inflation rate fell to 0.76% in January, the lowest in 24 years, down from 1.57% in December. This sharp decline puts inflation below the central bank’s target range, highlighting subdued price pressures in the economy.
- Indonesia’s economy grew 5.03% in 2024, the slowest pace in three years, as weakening demand from the middle class and China weighed on growth. This sluggish expansion presents challenges to President Prabowo’s ambitious goal of reaching 8% annual GDP growth by 2029.
- Indonesia has outlined an ambitious energy transition plan under President Prabowo, aiming for a net-zero future, but skepticism remains over whether the government can realistically phase out coal within 15 years. Despite growing momentum, challenges such as energy security, economic dependency on coal, and infrastructure constraints may hinder progress.
- Indonesia’s central bank maintained its benchmark interest rate at 5.75%, pausing its easing cycle as expected by most analysts. The decision reflects a cautious approach to balancing economic growth with inflation stability, as global uncertainties and domestic factors continue to shape the country’s monetary policy outlook.
Indonesia stock market update
February was a tough month for Indonesia’s markets. The IDX Composite saw a sharp decline of 11.80%, closing at 6,270.6, while the IDX LQ45 dropped significantly by 14.56%, ending the month at 703.63. Economic pressures weighed heavily on investor sentiment, leading to steep losses across both indices.
- PT Temas Tbk reported a 13.95% decline in net profit for 2024, totaling IDR 673.36 billion, despite a slight 0.93% revenue increase to IDR 4.34 trillion. The drop in profitability was mainly driven by an 8% rise in service expenses, reaching IDR 3.44 trillion, along with an 18.91% decline in gross profit and a 19% rise in operating expenses.
- PT Triputra Agro Persada Tbk recorded a 94.02% surge in net profit for 2024, reaching IDR 3.12 trillion, driven by a 16.16% rise in revenue to IDR 9.67 trillion. The growth was primarily fueled by increased sales of palm oil and its derivatives, which contributed IDR 9.64 trillion.
- PT Green Power Group Tbk announced it will acquire 189,000 shares, representing a 45% stake in PT Gotion Indonesia Materials, from PT Neopower Teknologi Indonesia, following a Memorandum of Understanding signed on February 26, 2025.
- PT Unilever Indonesia Tbk continues its downward trend, with shares dropping 4.44% to IDR 1,290, significantly reducing its market capitalization to IDR 51.5 trillion from IDR 134.67 trillion a year ago. Several factors contribute to this decline, including sluggish revenue growth, rising operational costs, increasing competition from local and global consumer goods brands, and shifts in consumer preferences.
Indonesian top gainer and top loser stocks for February
Summary
Overall, Indonesia’s economy slowed in 2024, with GDP growth at 5.03%—the weakest in three years—due to weaker domestic demand and exports. Inflation fell to a 24-year low of 0.76% in January, while Bank Indonesia held rates at 5.75% to balance growth and stability. The government’s ambitious plan to phase out coal within 15 years faces feasibility concerns. Markets struggled, with the IDX Composite down 11.8% and LQ45 falling 14.56%. Corporate earnings were mixed, as PT Temas Tbk saw profits decline, while PT Triputra Agro Persada Tbk surged on strong palm oil sales. PT Unilever Indonesia Tbk continued its market value decline due to weak growth and rising competition.
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