FROM EQUITY RESEARCH DESK

IDEA OF THE DAY

Astra International: Sharper Return Focus, Preserving Diversification (ASII.IJ Rp 5,600; BUY TP Rp6,850)

  • ASII aims to focus on Auto, Financial Services and HEMCE, although healthcare and infrastructure remain part of the wider growth portfolio.
  • We see near-term growth expansion on auto parts/ components, and UNTR’s diversification toward metallurgical coal.
  • ASII targets low-teens TSR, supported by 45–50% DPR and next 12 months Rp8tr buyback. We maintain our Buy rating and TP of Rp6,850.

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A Macro Strategy: After the Hike, What’s Next

  • BI’s 50 bps hike signals stronger IDR stabilization focus, tighter FX controls, elevated short end yields, and targeted growth support.
  • Current episode appears defensive and FX-driven, contained inflation limits hike risks as govt keeps fuel prices unchanged.
  • We highlight the key factors behind BI’s rate hike decision and revise our scenario band, with 10Y yields at 6.7% to 7.3%.

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RESEARCH COMMENTARY

  • BBRI (Not Rated) Apr26 Bank-Only Results
  • BNGA (Buy, TP: Rp2,100) - Bank - Only Apr26 Results
  • BRIS (Buy, TP: Rp3,100) – Bank - Only Apr26 Results
  • UNTR (Buy, TP: Rp30,600) – Apr26 Operational: Post-holiday normalization, RKAB overhang lingers
  • Poultry (Overweight) – 3rd Week of May 2026 Price Update

 

MARKET NEWS

MACROECONOMY

Indonesia Officially Establishes DSI to Centralize Strategic Commodity Exports

Indonesia officially ratified the establishment of state-owned enterprise Danantara Sumberdaya Indonesia (DSI) on May 25, 2026, marking a major step in the government’s plan to centralize exports of strategic commodities. Starting June 1, exporters of key products including palm oil, thermal coal, and selected nickel products will be required to report sales to the new entity during an initial transition phase. Over time, DSI is expected to assume control over export contracts, logistics, and payments. While authorities framed the initiative as part of broader trade integration efforts, investors remain cautious over potential shifts away from Indonesia’s market-oriented policy framework. (Bloomberg, CNBC)⁠

 

SECTOR

Commodity Price Daily Update May 25, 2026

CORPORATE

BBRI Receives Additional Housing KUR Quota After Rp9.2tr Disbursement

BBRI will receive an additional housing KUR quota in 2026 after its disbursement exceeded the government’s initial allocation. The bank was originally assigned a Rp8tr quota, but as of 25 May 2026, realized disbursement had reached Rp9.2tr covering around 12,500 housing units. Following the strong uptake, the government increased BBRI’s housing KUR quota to Rp12tr, with current realization already equivalent to around 76% of the revised allocation. (Kontan)

 

BTPN Sells Rp19.9tr Loan Portfolio to BBTN

BTPN agreed to sell pension-related loan portfolios and loan assets worth Rp19.92tr to BBTN through two agreements signed on 22 May 2026. The transaction covers loans linked to Taspen, Asabri, other pension funds, and active employee lending. The deal value equals 46.3% of BTPN’s equity and 55% of BBTN’s equity as of end-2025 and was deemed fair based on an independent valuation report. (Emiten News)

 

ELSA Supports Pertamina EP to Boost Output from 51 Wells

ELSA is supporting PT Pertamina EP Zona 4’s workover program at 51 oil wells in South Sumatra through wireline logging and perforation services. The program, supported by Elnusa’s in-house technology, contributed an additional 432 BOPD and aims to help boost national oil production. (Kontan)

 

KLBF Declares Rp936bn Dividend for FY25

KLBF will distribute a cash dividend of Rp936.26bn, equivalent to around 25.6% payout of its FY25 net profit of Rp3.66tr. This translates to Rp20 per share (2.5% yield), with the dividend payment scheduled for 24 June 2026. (Emiten News)

 

MAIN Approves Rp52 per Share Dividend

MAIN approved a cash dividend of Rp52 per share (6.3% yield) at its AGMS on 25 May 2026, following the company’s FY25 net profit of Rp393.5bn. The dividend represents a 30% payout ratio. (Bisnis)