MACROECONOMY

Indonesia Inflation was Recorded at 2.61% yoy in Dec23

Inflation in December 2023 was recorded at 2.61% yoy / 0.41% mom, inline with our estimates of 2.56% (Cons: 2.82%). Core inflation follows a continued disinflation trend, reaching a 23-month low at 1.80% yoy. The main contributor to the annual inflation remained unchanged in December.

Volatile Food inflation eased to 6.73% yoy/1.42% mom, after reaching a 9-month high in November. Chili prices continued to become the main contributor in the monthly inflation as rice price remained stable. Administered Price inflation decreased to 1.72% yoy (vs Nov's 2.12%) but exhibited monthly acceleration due to 4.67% mom increase in airplane tariffs, contributing around 15% to the overall monthly inflation, equivalent to the contribution of red chili. (Indonesia Statistic)

Indonesia Gov’t State Budget Deficit Reached Rp347.6tr for FY23

Gov't State Budget deficit reached Rp347.6tr for FY23, translated to 1.65% to GDP, well below the target of 2.3%. Overall revenue realization grew by 5.3% to Rp2,774.3tr, accounting for 105.2% of the target. On the expenditure side, the full-year posture met the target, totaling Rp3,121.9tr (+0.8% yoy), with a surge in spending activity towards year-end. (Ministry of Finance)

Indonesia Manufacturing PMI Rose 52.2 in Dec23

Indonesia Manufacturing PMI rose to 52.2 in Dec23 from Nov's 51.7, the fastest expansion rate in 4 months and 28 consecutive months of expansion. New orders rose the most since September as foreign demand increased for the first time in three months. Input cost continue to increased, followed by slightly quicker increase in selling prices. (S&P Global)

CORPORATE

DOID Secured US$750mn Loan from BBNI

DOID’s subsidiary, Bukit Makmur Mandiri Utama (BUMA), announced a US$750mn guarantee financing arrangement from BBNI. This facility will be operational for 69 months, finishing in 2029. This facility is critical to BUMA’s financial management, allowing refinancing and supporting growth ambitions. It helps BUMA continue its growth and operational excellence by providing the capital required to progress major projects and pursue possible acquisitions per the company’s strategic objectives. (Emiten News)

PTBA Constructs Infrastructure to Increase Coal Handling Capacity

PTBA has begun building a new coal handling facility to improve coal transportation capacity via the Tanjung Enim-Keramasan railway line. Three new coal handling facilities are being constructed: two Train Loading Stations (TLS) with a capacity of 3,000 tons per hour each and a rail loop; two Conveyor System lines with lengths of 13 km and 17 km, each with a capacity of 3,000 tons per hour; and three Dump Hoppers that can be used by dump trucks with capacities of 60 tons and 100 tons. (Emiten News)

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