The inevitable budget revision (3)
The State Budget 2025 has just started, but it might only need a matter of few weeks to see a proposal to revise the budget to accommodate President Prabowo’s ambitious programs—-free meal, food estate, and three million homes—and finance expansion of bureaucracy from the central government to regional level administrations.
Will Unilever ever return to peak?
Shares of Unilever Indonesia (UNVR), market leader in home and personal care products, ended higher by 1.45% to Rp1,745 on Tuesday (Jan 14) as some investors responded positively the company’s decision to divest the ice cream business for Rp7 trillion.
Data center industry update
Shares of Solusi Sinergi Digital (WIFI), a company where President Prabowo’s brother Hashim Djojohadikusumo has minority ownership through Arsari Group, gained 24.47% on Tuesday (Jan 14) to make a market capitalization of Rp1.39 trillion.
Indomobil anyone?
Domestic car sales dropped 14% last year due to price hike (related to higher VAT and weaker rupiah) and the squeezed middle income group. Downfall of car sales in the past ten years contributed to substantial correction of automotive-related shares like Astra Internasional (ASII) and Indomobil (IMAS).
Undervalued stocks: Malindo Feedmill
Hype on President Prabowo’s free meal program might have been short-lived. Shares of integrated poultry players listed on Indonesia Stock Exchange (IDX) ended mixed Tuesday (Jan 14) with both Charoen Pokphand (CPIN) and Jaffa Comfeed (JPFA) down 1.32% and 0.27% respectively, while Malindo Feedmill (MAIN) was flat.
Further market corrections
Composite index of Indonesia Stock Exchange (IDX) ended further down by 0.86% to 6956.66 Tuesday (Jan 14) on a broad market correction. The index prevented a deeper correction thanks to recovery in nickel-related shares and some consumer stocks.
Turning around Siloam Hospital?
Shares of market leader Siloam International (SILO) ended slightly down by 0.32% to Rp3,100 on Monday (Jan 13). The quoted price reflected that the Company, controlled by Riady Family’s Lippo Group and CVC, valued at Rp40.24 trillion.
Nickel production cut
Nickel regained grounds to US$15,895 per ton on the London Metal Exchange (LME) Monday (Jan 9) as some market participants anticipate possible production cut in Indonesia, home to nearly 50% of world production.
Partners in the Free Meal Program: OBAT?
Some complained about the absence of milk in the free meal program even when the program has only reached five percent of the target. The government looked uncertain about it. Aware of limited domestic milk production capacity, some proposed the use of fish milk. The latest, PT Brigit Biofarmaka (OBAT) Tbk, a newly listed company, offered spirulina (blue-green algae) milk.
Corrections on state banks
Shares of banks ended mostly lower ground Monday (Jan 13) on broad market sentiment. Shares of state banks, however, have fallen more than private banks since the inauguration of new president Prabowo Subinato on October 20, 2024.