Go Premium
Assalamu Alaykum,
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 June. Let’s get started.
Stock market updates
Indonesian markets faced headwinds in June, with the IDX Composite declining 1.94% to close at Rp 6,928, bringing its year-to-date performance to -3.29%. The IDX LQ45 saw steeper losses, dropping 2.93% to Rp 773 and accumulating a 7.71% decline since the beginning of the year.
PT Astra Agro Lestari (AALI) reaffirmed its sustainability commitment by aligning its reports with OJK rules and Global Reporting Initiative (GRI) standards. The 2024 sustainability report emphasizes no-deforestation, peatland protection, and progress on the AALI Sustainability Aspirations 2030 initiative. Revenue rose 5% to IDR 21.82 trillion, lifting net profit by 9% to IDR 1.15 trillion, though shares declined 2.5% over the past month.
PT Garuda Metalindo (BOLT) will allocate IDR 40 billion in 2025 capex, fully funded from internal cash, for machinery upgrades and new equipment. The company also announced a dividend of IDR 20 per share (IDR 46.87 billion total), representing 49.5% of 2024 net profit, with the cum date on July 20. Net profit in Q1 2025 jumped 51.45% YoY to IDR 26.63 billion, backed by a modest 0.96% rise in sales to IDR 368.9 billion.
PT Merck Tbk (MERK) will distribute IDR 76.16 billion in dividends, equivalent to IDR 170 per share or 49.6% of its 2024 net profit, which declined 13.8% YoY to IDR 153.46 billion. At a share price of IDR 3,380, the yield stands at 5.03%. Key dates include a cum date on June 24 (regular market) and payment scheduled for July 15, 2025.
PT Jasa Armada Indonesia Tbk (IPCM) will distribute IDR 125.16 billion in total dividends from its IDR 166.84 billion 2024 net profit, reflecting a 75.02% payout ratio. This includes an interim dividend of IDR 20.05 billion paid in January and a final cash dividend of IDR 105.11 billion (IDR 19.92 per share). The total dividend rose 5.84% YoY, while IPCM’s retained earnings stood at IDR 298.91 billion.
PT United Tractors Tbk (UNTR), via subsidiary PT Energia Prima Nusantara, acquired 780.5 million shares in PT Supreme Energy for USD 19.17 million. The move aligns with UNTR’s diversification strategy into renewable energy and supports its goal of expanding green power plant development in Indonesia. The deal is not classified as material or affiliated under OJK regulations.
PT Trimegah Bangun Persada Tbk (NCKL) will distribute IDR 1.9 trillion in dividends for FY2024, or IDR 30.3 per share, marking a 13.5% increase from the previous year. The payout represents 34% of its IDR 5.6 trillion net profit, aligning with its history of consistent 30% dividend ratios. Based on the latest closing price, the dividend yield rises to 4.3% despite a 6.62% YTD decline in share value.
Top gainer and top loser Halal stocks in Indonesia
Economic updates
Bank Indonesia kept its benchmark interest rate unchanged at 5.5%, citing a stable inflation forecast for 2025–2026 and a focus on rupiah stability. Governor Perry Warjiyo said BI may consider rate cuts later, depending on inflation trends and exchange rate conditions. Analysts expect a 25 bps cut in Q3, supported by low inflation, softening growth, and a solid external position.
Indonesia’s government debt surged 164% year-on-year to Rp349.3 trillion ($21.4B) in the first five months of 2025, driven by increased fiscal needs. Deputy Finance Minister Thomas Djiwandono clarified that non-debt financing showed a negative Rp24.5 trillion due to sectoral investments, not new liabilities. Despite the sharp rise, Finance Minister Sri Mulyani affirmed that fiscal policy remains disciplined, with a higher May surplus and adherence to a 2.53% deficit target.
Indonesia is preparing a new national poverty line formula in response to the World Bank’s June 2025 updates, aiming for better alignment with global standards. The move follows stark discrepancies—while official BPS data reported 8.57% poverty in 2024, the World Bank estimated 60.3% using a $6.85/day threshold for upper-middle-income countries. The government emphasizes this is a methodological update, not a crisis signal, and plans to finalize the revision before President Prabowo’s upcoming address.
President Prabowo Subianto has announced that Indonesia will stop importing corn by 2026, following a 48% surge in domestic production in early 2025. With yields now reaching 6–8 tons per hectare and support from high-quality seeds and organic fertilizers, self-sufficiency could be achieved as early as next year. The president also emphasized value-added innovation and better farmer welfare through technological and input cost interventions.
With a 32% U.S. tariff on Indonesian goods set for July 9, Coordinating Minister Airlangga Hartarto revealed that U.S. officials welcomed Indonesia’s proposal for more balanced trade during a virtual meeting with Treasury Secretary Scott Bessent. The Trump administration is targeting Indonesia over its growing trade surplus—$5.4 billion in Jan–Apr 2025, up 20% YoY—and alleged unfair practices. Indonesia has pledged to boost U.S. imports, especially in energy and agriculture, but talks remain delicate with no final agreement yet.
Disclaimer: The content is for informational purposes only and does not constitute legal, investment or financial advice.
It is important to conduct your own research or consult with a financial or investment advisor. Past performance is not indicative of future results. All logos or brands are referenced for identification purposes only and do not constitute an endorsement of any kind. This information is accurate as of the date of publication and may not reflect recent changes. Access our comprehensive legal disclaimers at https://musaffa.com/disclaimer.