FROM EQUITY RESEARCH DESK

IDEA OF THE DAY

Aspirasi Hidup Indonesia: NEKA’s Store Visit Takeaways: Promising Value Proposition, Though Still in Early Execution Stage (ACES.IJ Rp394; BUY TP Rp550)

• NEKA’s Jatimakmur store offers ~4k SKUs, attracting students and mothers with Rp80-100k avg basket size.
• NEKA has limited SKU overlaps with AZKO yet broadly mirrors MR. DIY. Management expects minimal long-term margin dilution on lean operations.
• Nonetheless, NEKA’s execution remains key as it is still in an early stage. We reiterate Buy rating on ACES with unchanged TP of Rp550.

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MARKET NEWS

MACROECONOMY

US Trade Deficit Widened Sharply to US$56.8bn in Nov25 The US trade deficit widened sharply to US$56.8bn in Nov 2025, the highest in four months, from US$29.2bn in Oct and well above the $40.5bn forecast, reflecting volatile tariff policy. Imports rose 5% to US$348.9bn, driven by higher purchases of pharmaceuticals (+US$6.7bn) and computers (+US$6.6bn). Meanwhile, exports fell 3.6% to US$292.1bn, led by declines in nonmonetary gold, pharmaceuticals, and crude oil. Deficits widened with Vietnam (US$16.2bn), China (US$14.7bn), and the EU (US$14.5bn). (U.S. BEA, CNBC)   Indonesia: Free Nutritious Meal Program Continues During Ramadan The Free Nutritious Meal Program (MBG) will continue during Ramadan with adjusted distribution. Muslim-majority schools will receive dry food packages to be taken home for iftar, while non-Muslim schools will be served as usual. Nutrition units serving Islamic boarding schools will continue preparing regular meals in the afternoon. (Kontan)   SECTOR Commodity Price Daily Update Jan 29, 2026

CORPORATE

DOID Executes US$46.5mn Capital Injection into BUMA SG

DOID executed a US$46.5mn intra-group loan from BUMA Indonesia to its Singapore subsidiary, BUMA SG, on 26 January 2026. The capital injection supports BUMA SG’s operations and is not expected to materially impact the group’s financial condition. Following the transaction, BUMA Indonesia’s ownership in BUMA SG increased to 98.46%. (Emiten News)

 

MDIY Sees More Even Consumer Spending Growth Across Regions in 2026

MDIY expects consumer spending growth in 2026 to become more evenly distributed across regions, driven by its expansion of over 270 new stores in 2025, including its 1,200th outlet in Sumbawa. The company noted stronger demand in tier-2 and tier-3 cities, with household essentials remaining the top category. Consumers are increasingly selective and value practical, affordable, and multifunctional products, a trend expected to continue in 2026, with higher demand anticipated during Ramadan. (Kontan)

 

MEDC Targets Record Oil and Gas Output in 2026

MEDC targets record oil and gas production of 165,000–170,000 boepd in 2026, supported by strong 2025 output of 156,000 boepd and higher control in the Corridor Block. Peak production reached 178,000 boepd in 4Q25. Power sales are targeted to rise to 4,550 GWh in 2026, with renewables contributing 24%. Proven and probable reserves increased to 564 mmboe, while shareholders received a 27% total return in 2025. (Kontan)

 

PGAS Allocates US$353mn Capex to Strengthen Midstream and Downstream Gas Business

PGAS has set a 2026 capital expenditure budget of US$353mn, with around 62% allocated to midstream and downstream development, including gas distribution infrastructure and household gas networks (jargas). PGAS will start a jargas pilot project in Batam this year, followed by four other potential cities, in line with Danantara’s direction to shift PGAS’ focus away from upstream and toward gas distribution to end users. (Kontan)

 

TLKM Finalizes Buyer for Healthcare Business Admedika

TLKM is in the final stage of divesting its healthcare subsidiary AdMedika, with Singapore-based Fullerton Health Indonesia emerging as the prospective buyer. Although the final transaction structure has not been disclosed, sources indicate the deal could value AdMedika at approximately US$80-100mn, subject to regulatory approvals and the final configuration of the transaction. (Dealstreet Asia)