FROM EQUITY RESEARCH DESK

IDEA OF THE DAY

Adaro Andalan Indonesia:  Firmer ASP to Support 2H26 Outlook (AADI.IJ Rp11,750; BUY TP Rp12,400)

• We expect 2H26 earnings to be supported by stronger coal prices, underpinned by firmer demand from key importers.
• The Kestrel sale remains on track, with estimated gross proceeds of c.US$888mn, although regulatory approvals are still pending
• Maintain Buy with an unchanged DCF-based TP of Rp12,400.

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RESEARCH COMMENTARY

PGEO (Buy, TP Rp1,300) - Company Update: Testing AI-Power Optionality via Kamojang Data Center Pilot

• The Development: PGEO disclosed a feasibility study for geothermal-powered green data center electrification in Kamojang, West Java, framed as a pilot project to support Indonesia's national AI ecosystem buildout.
• The Mechanism (Mgmt. Call Check): PGEO supplies power only, not the data center operator. Site must sit adjacent to the WKP, using existing capacity (no new wells). Structure is direct-to-partner, bypassing PLN.
• Scale, Partner & Pricing: Pilot capacity just 5-7MW, incremental capex flagged as immaterial to group capex. Partner still local and unnamed, selection ongoing. Tariff mechanism undecided, potentially profit-share rather than conventional per-kWh tariff since the deal sits outside standard PPA terms. Start-up tentatively 2027F, unconfirmed by mgmt.
• Read-through to Our Numbers: At 5-7MW, immaterial vs. our 988MW by FY28F capacity target already underpinning our TP of Rp1,300. Adds an incremental AI-power optionality layer alongside our existing base-case drivers (Ulubelu Binary 30MW + Hululais 110MW in FY27-28F, PP112/2022 tariff reform, potential acquisition of another geothermal operator).

Watchpoints: Partner identity and final tariff/profit-share structure remain undisclosed. 2027F start-up target unconfirmed by mgmt. Maintain BUY, TP Rp1,300. (Andhika Audrey – BRIDS)

 

MARKET NEWS

SECTOR

Top Foreign Flow – JCI, September 8, 2026

CORPORATE

ADRO Allocates Up to US$420mn Capex in 2026

ADRO has allocated up to US$420mn (Rp7.35tr) of capex in 2026, mainly for infrastructure development at Maruwai Coal (MC) and the construction of an aluminium smelter at Kalimantan Aluminium Industry (KAI). The MC investment includes bridge construction, haul road upgrades, and a research center to support business volume growth, while the KAI smelter forms part of ADRO’s mineral downstreaming expansion. (Kontan)

 

AKRA Allocates Rp1tr Capex in 2026

AKRA has allocated around Rp1tr of capex for 2026, with Rp546bn already realized in 1H26. The capex will be used for entrance capex, the acquisition of one vessel, terminal development across Java, Kalimantan, and Sulawesi, as well as utility facilities at the Java Integrated Industrial and Port Estate (JIIPE). (Bisnis)

 

ASRI Targets Rp300bn Additional Marketing Sales from Alam Sutera Group Expo

ASRI is holding the Alam Sutera Group Expo 2026 on 8–13 Sep26 at Lippo Mall Puri, Jakarta, targeting an additional Rp300bn in marketing sales from the event. The company maintains an optimistic outlook for the 2H26 property market and expects to achieve its FY26 marketing sales target of Rp2.8tr, supported by the expo and launches of several new projects. (Kontan)

 

TOWR Secures >Rp100tr Remaining Contract Revenue Through 2045

TOWR has more than Rp100tr of remaining contract revenue from long-term contracts through 2045, supported by its scale of around 37,000 telecom towers and 182,000km of fiber-optic networks across Indonesia. The long-term contracts are expected to provide revenue support amid TOWR’s transformation into an integrated digital infrastructure platform. (Investor Daily)