Prajogo, the richest man in Indonesia?
Forbes placed Prajogo Pangestu as the richest man in Indonesia with net worth of US$47 billion. This is related to the combined market value of five highly overvalued companies listed on the Indonesia Stock Exchange (IDX) at Rp2,107 trillion or US$130 billion.
The inevitable budget revision (6): Military expansion
Ministry of finance has been tasked to clear up Rp306 trillion (almost US$20 billion) from the current State Budget 2025 by cutting significantly the approved programs (deemed less important) to finance Prabowo’s new programs. Government spending on those items has been temporarily frozen with immediate effect.
Apple’s financials & Indonesia’s local content policy
Apple booked net profit of US$36.3 billion in the quarter ended December 31, 2024, an increase of 7.1% from the corresponding period in 2023. Apple, whose sales of iPhone 16 was banned in Indonesia related to the old-fashioned local content policy, generated sales revenue of US$124.3 billion in the period, an increase of 3.9% from the same period in 2023.
Russian Oil
Energy and mineral resources Bahlil Lahadalia, who is chairman of Golkar Party, said recently that it should not be a problem for Indonesia to import crude oil from Russia. Indonesia’s decision to join BRICS, where Russia and China are key founding members, pave the way for Russian oil entering the country.
Baznas & the Free Meal Program
The Constitutional Court has once again become the stage for a legal battle regarding Law Number 23 of 2011 on Zakat (a form of almsgiving) Management. The lawsuit, filed by Yayasan Dompet Dhuafa Republika, Perkumpulan Forum Zakat Jakarta, and Arif Rahmadi Haryono, challenges several articles that are perceived as detrimental to civil society’s role in managing zakat. This judicial review has gained significant attention, particularly with the involvement of high-profile legal figures Bambang Widjojanto and Denny Indrayana as the petitioners’ legal representatives.
Correction in banking stocks
After a long holiday, composite index of Indonesia Stock Exchange (IHSG) ended lower by 1.29% Thursday (Jan 30). Nikkei 225 and All Ordinaries ended higher grounds in Tokyo and Sydney respectively, while other markets were closed on Lunar Year holidays.
Prodia & Bintoro’s extortion (bribery) case
Shares of Prodia Widyahusada (PRDA), market leader for medical check-up, opened lower by 1.94% to Rp2,530 this morning to make a market capitalisation of Rp2.37 trillion. The stock has collapsed 73% from its peak in December 2021 (which was also peak of the Covid-19 pandemic).
DeepSeek’s disruption (3)
Composite index of Indonesia Stock Exchange (IDX) opened lower by 1% this morning, dragged down by blue chip stocks (BCA, TLKM, etc) and members of Prajogo Index (BREN, TPIA, etc). Other the Fed’s decision to keep the benchmark rates, investors are digesting stream of new policies from Trump administration, including to respond the rise of China-based AI platforms beyond DeepSeek.
Key takeaways from NIC’s December Quarter
Shares of ASX-listed Nickel Industries Ltd, which operates mine, RKEF, and HPAL nickel smelters in Sulawesi and North Maluku, opened lower by 1.87% in Sydney this morning despite reporting stronger performance in the December 2024 quarter.
Tech winter on Telkom
Shares of state-owned telecommunication giant Telkom (TLKM) ended lower by 0.74% to Rp2,690 last Friday (Jan 24) to make a market capitalisation of Rp266.5 trillion. The company has lost 44% its value from peak seven years ago, among others due to series of poor investments in various companies, including tech start-ups.