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 March. Let’s get started.
Stock market updates
March brought a positive turnaround for Indonesia’s markets, with both major indices posting gains. The IDX Composite rose by 3.45%, closing at 6,487, while the IDX LQ45 gained 4.06%, ending the month at 732. These improvements suggest a recovery in investor sentiment as the market rebounded from previous challenges, with renewed optimism supporting the positive momentum across key indices.
- PT Diamond Food Indonesia posted a 16.95% rise in 2024 profit to IDR363.94 billion, supported by a 6.19% increase in revenue to IDR9.81 trillion. Operating profit rose 9.54%, while gross profit edged up 2.46%. Assets grew 4.01% and liabilities fell 6.44%, but stock liquidity remained low with minimal trading activity.
- PT Bank Syariah Indonesia posted a 10% year-on-year rise in net profit to IDR1.16 trillion as of February 2025, despite a slowdown from January’s 15% growth. Fee-based income surged 71.05% to IDR516.73 billion, while provision expenses rose 26.62% to IDR487.25 billion. Financing reached IDR282.05 trillion, and third-party funds grew 10% to IDR318.99 trillion.
- PT Dayamitra Telekomunikasi Tbk posted a 2024 profit of IDR 2.10 trillion, up 4.82% from the previous year, with revenue rising 7.18% to IDR 9.30 trillion. Growth was supported by all segments: tower rental (IDR 8.63 trillion), construction services (IDR 639.31 billion), and electricity rental (IDR 38.33 billion). Major clients included Telkomsel (53%), Indosat (20%), and XL Axiata (12%).
- PT Semen Indonesia saw its net profit plunge 66.8% in 2024 to IDR 719.8 billion, down from IDR 2.2 trillion in 2023, amid a downturn in the cement industry. Revenue declined 6.4% to IDR 36.2 trillion, with cement sales to third parties falling 8.21% to IDR 27.2 trillion. Despite lower revenue, high costs led to a 22.1% drop in gross profit to IDR 7.9 trillion. The profit decline worsened each quarter due to industry challenges like oversupply, fierce competition, and cuts in government infrastructure spending.
Top gainer and top loser Halal stocks in Indonesia
Indonesia Economic updates
- Donald Trump imposed a 32% tariff on Indonesian products as part of a broader move targeting 54 countries that, according to the White House, have imposed unfair trade barriers against the U.S. In Indonesia’s case, the U.S. cited a 30% import tariff on American ethanol, compared to only 2.5% for Indonesian ethanol entering the U.S. Additionally, Indonesia’s local content requirements (TKDN), complex import licensing rules, and new mandates requiring natural resource exporters to repatriate export earnings domestically were flagged as non-tariff barriers.
- Indonesia recorded its first deflation in over two decades in February 2025, with the consumer price index dropping 0.09% year-on-year—marking the first annual deflation since March 2000. This unexpected decline, far below the market forecast of 0.60% inflation, was primarily driven by a significant government-led discount on electricity bills aimed at bolstering economic growth.
- Indonesia’s tax revenue plunged by 30% in the first two months of 2025, falling to 240 trillion rupiah ($14.6 billion) from 320.5 trillion rupiah a year earlier, sparking growing concerns about the country’s fiscal health. With tax collections accounting for 75% of state revenue, analysts are warning of a potential widening fiscal deficit, especially as President Prabowo Subianto advances ambitious welfare programs that could further strain government finances.
- Indonesia’s manufacturing sector kicked off 2025 on a strong note, defying broader economic concerns, with its Purchasing Managers’ Index (PMI) remaining consistently in positive territory, according to S&P Global surveys. This robust performance has been driven by rising domestic demand and a surge in orders as manufacturers move quickly to ship products ahead of anticipated U.S. tariffs.
- Indonesia’s state-owned construction companies are facing a deepening financial crisis, with a combined debt load of around 258 trillion rupiah ($15.7 billion), over six times higher than a decade ago. The crisis has resurfaced following the trading suspension of one state builder’s shares and growing fears that more debts could remain unpaid as the government plans to slash infrastructure spending.
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