Indonesia Market Update – May 2025

Analysis, Halal Investment, Market Analyses, Market News |

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 for May. Let’s get started.

Stock market updates

May delivered another strong month for Indonesia’s markets, with both major indices recording impressive gains. The IDX Composite surged by 5.28%, closing at 7,176, while the IDX LQ45 jumped by 6.74%, ending the month at 815. The robust performance reflects growing investor confidence and sustained momentum, as favorable market conditions and economic resilience continue to drive positive sentiment.

  • Mitra Keluarga Karyasehat Tbk (IDX: MIKA) has announced plans to distribute a cash dividend of IDR 43 per share, totaling between IDR 590 billion and IDR 620 billion. This dividend represents approximately 48.08% to 50.52% of the company’s net profit for the 2024 financial year, which amounted to IDR 1.22 trillion. The cum and ex-dividend dates on the regular and negotiated markets are scheduled for June 16 and 17, 2025, respectively, with dividend payments set for July 10, based on the Shareholders List (DPS) recorded on June 18, 2025.
  • Aldrian Suwardi Chandra, President Director of PT Gaia Artha Dinamic (GAD), is finalizing the acquisition of 2.65 billion shares of PT Sumber Sinergi Makmur Tbk (IOTF), representing a 49.38% stake. GAD, a hosting and related services company, will become the controlling shareholder of IOTF by acquiring shares from Alamsyah and Gracia Puspita Suciono. The acquisition, valued at approximately IDR 517.27 billion, aims to integrate business lines and develop assets within IOTF. Aldrian is also the co-founder of PT Arkadia Digital Media Tbk (DIGI) and serves as Director of PT Mobilink Komunika Media.
  • PT Mastersystem Infotama Tbk (IDX: MSTI) has announced a cash dividend distribution of IDR 370.45 billion, representing 69.84% of its net profit for the 2024 fiscal year, which amounted to IDR 530.37 billion. The dividend, equating to IDR 118 per share, is scheduled for payment on June 26, 2025, based on the Shareholders Register (DPS) as of June 13. This payout ratio aligns with MSTI’s consistent practice since its stock exchange debut in November 2023. Additionally, the company will allocate IDR 159.92 billion to retained earnings, bringing the total retained earnings for the 2024 financial year to IDR 1.46 trillion.
  • PT Unilever Indonesia Tbk (UNVR) has announced a dividend payout of IDR 3.4 trillion for the 2024 financial year, representing 99.7% of its net profit. This includes an interim dividend of IDR 41 per share, paid in December 2024, and a final dividend of IDR 47 per share, scheduled for distribution by July 2, 2025. The decision reflects the company’s disciplined capital management and confidence in its business fundamentals. Despite a 29.8% decline in net profit to IDR 3.4 trillion, UNVR remains committed to delivering value to shareholders.
  • PT Golden Energy Mines Tbk (IDX: GEMS), a coal mining company under the Sinarmas Group, has announced an interim dividend of USD 100 million (approximately IDR 1.63 trillion) for the 2025 financial year. This dividend equates to USD 0.017 per share, or IDR 277 per share, based on Bank Indonesia’s exchange rate of IDR 16,300 per USD as of June 2, 2025. The payout represents 88.5% of the company’s net profit for Q1 2025, which stood at USD 113.04 million. As of the end of Q1 2025, GEMS reported unrestricted retained earnings of USD 540.45 million and total equity of USD 775.63 million.

Top gainer and top loser Halal stocks in the Indonesia

Economic updates

  • Bank Indonesia has reduced its benchmark seven-day reverse repo rate by 25 basis points to 5.5%, marking the first rate cut since January. The move comes as the rupiah shows signs of stabilization following recent central bank interventions, and aims to support domestic economic growth amid easing currency pressures.
  • Indonesia is optimistic about its bids to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Organisation for Economic Co-operation and Development (OECD), following strong backing from Australia. After a meeting with Indonesian President Prabowo Subianto, Australian Prime Minister Anthony Albanese, on his first overseas trip since re-election confirmed Australia’s support.
  • Indonesia’s coal exports fell 12% in January–May 2025, hitting their lowest level since 2022, with major declines to China and India. Exporters cut prices, pushing global coal prices to four-year lows. Cheaper coal weakens the case for natural gas power in Asia, where coal dominates the electricity supply. New gas projects face delays and funding issues, especially in Indonesia and the Philippines. This trend threatens LNG demand growth and pressures short-term gas prices.
  • Indonesia’s trade surplus narrowed sharply to $160 million in April 2025, the smallest since April 2020 and well below the $3.04 billion forecast. This decline was driven by a 21.84% year-on-year surge in imports, particularly capital goods from China and Singapore, while exports rose only 5.76%, with mining shipments falling over 20% due to weak coal prices. U.S. tariffs also impacted exports, with $2.08 billion in goods shipped to the U.S. Despite this, inflation eased to 1.60% in May, down from 1.95% in April, aided by a 15% increase in rice production. Core inflation also edged below expectations at 2.4%, facilitating three recent interest rate cuts by the central bank within its 1.5%-3.5% target range.
  • Indonesia targets 5.1%–5.5% economic growth in 2025, focusing on EV development, digitalization, and green economy policies. Finance Minister Sri Mulyani believes these measures will support long-term growth. President-elect Prabowo aims for 8% growth in 2–3 years, backed by the food and biodiesel sectors. Major budget allocations will support social, educational, and health programs. However, IMF and World Bank project lower growth at around 5%.

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