Market

The Business Competition Supervisory Commission (KPPU) recently announced that it has completed a study on the entry of Low Earth Orbit (LEO) internet service providers into the country and its impact on business competition in Indonesian internet service providers. We all know who is meant in this study: Starlink. The presence of Starlink in Indonesia has indeed caused a stir with very different responses, users feel excited, competitors feel pressured. How could it not, the services offered by Starlink can even reach the heart of Papua, something that other internet service providers cannot do. Thus, in the midst of the excitement, concerns arose about unfair business competition.

Shares of MD Pictures or MD Entertainment (FILM), controlled by the family of Manoj Punjabi, ended lower by 1.45% to Rp3,410 on Friday (Nov 29) to make a market capitalisation of Rp36.5 trillion. It has dropped significantly from August when we reviewed the stock, but needs further correction despite acquisition of NET TV.

Shares of shipping company PT Samudera Indonesia (SMDR) Tbk ended lower by 0.7% to Rp282 last Friday (Nov 29) to make a market capitalisation of Rp4.7 trillion, not even half of the company’s equity (Rp11.4 trillion as at September 30, 2024).

BRMS Overshooting?

Shares of Bumi Resources Minerals (BRMS), a gold miner, ended higher by 4.6% to Rp414 last Friday (Nov 29), while peer Merdeka Copper Gold (MDKA) closed lower by 4.7%. BRMS, co-owned by Bakrie and Salim Group, is now worth Rp62.8 trillion, four times equity (Rp15.6 trillion as at Sept 30, 2024). 

More ministries and government agencies are asking additional budget next year, which will be seen clearer once the 2025 State Budget’s amendment is proposed to the House of Representatives (DPR). While the plan to increase Value Added Tax (VAT) from 11% to 12% sparked nationwide protest, energy & mineral resources minister Bahlil Lahadalia said drivers of Ojol (app-based ride-hailing motorcycle taxi) will not be allowed to use subsidised gasoline. 

Kartika Wirjoatmodjo, deputy minister of state-owned enterprises, said over the weekend that the government, state-owned enterprises, and private sector will try to start with building 800,000 homes next year out of 3 million homes per annum target set by president Prabowo Subianto. 

PT Intermedia Capital Tbk (MDIA), immediate parent of TV station ANTV, has just published its full year 2023 financial statement, where it posted net loss of Rp959.5 billion against profit of Rp31.7 billion in 2022. Why the company reported operating loss while other TV stations came up with operating profit?

President Prabowo cried on Thursday (Nov 28) when announcing a rise in salary and benefit for teachers. He admitted that the rise was not enough (indeed nothing compared to his campaign promise), indirectly pointing to the State’s lack of funds. It is pretty much in contrast to his brother Hashim Djojohadikusumo’s optimism to collect more revenues for the State. May be Hashim can start with Visi Media Asia (VIVA), a holding company for media companies under Bakrie Group. 

Shares of gold and copper producer PT Amman Mineral International Tbk (AMMN) ended higher by 1.65% to Rp9,250 on Thursday (Nov 28) as some investors responded positively the company’s financial results for the first nine months of 2024, where net profit skyrocketed more than ten times to US$717 million.