MACROECONOMY

Bank of Japan Maintained its -0.1% Short-term Rate

The BOJ Maintained its -0.1% Short-term Rate and kept its yield curve control parameters intact Tuesday. It also updated its price and growth forecasts with no overall change to the picture of an economy heading slowly toward its first-rate hike since 2007. The governor said the certainty of achieving the BOJ’s projections has continued to gradually increase. At the meeting, the central bank cut its inflation forecast for the fiscal year starting in April to 2.4% from 2.8% in a quarterly outlook report due to recent declines in oil prices. That still leaves price gains continuing to exceed the BOJ’s 2% target for some time, as has been the case since April22. (Bloomberg)

Indonesia: New Loan Disbursements are Poised for Growth in 1Q24

New loan disbursements are poised for growth in the 1Q24, albeit at a more moderate rate, as indicated by the latest findings from the Quarterly Banking Survey. This deceleration aligns with a typical seasonal pattern. Banks are projecting a tightening of their lending standards. Looking ahead to 2024, banks anticipate an overall loan growth of 10.8% yoy, surpassing the 10.4% recorded in the previous fiscal year (FY23). The accumulation of Third-Party Funds (TPF) is also expected to experience a slowdown in the first quarter of 2024, with a subsequent positive trajectory by year-end. (Bank Indonesia)

CORPORATE

BBRI Expects QRIS Merchant Transaction Volume to Increase by 18% in 2024

BBRI expects the number of payment transactions via QRIS to increase by approximately 18% yoy by 2024. BBRI recorded more than 400% increase (yoy) in 2023. Furthermore, the number of BBRI QRIS merchants grew 30% yoy. In 2024, BBRI plans to acquire more QRIS merchants, targeting stores in shopping centers, tourist attractions, culinary centers, and other transaction centers. In addition, the company will also expand its QRIS acceptance through an application programming interface (API) in order to integrate with partner applications easily. (Kontan)

UNTR Expects an Increase in Gold Sales Volume this Year

UNTR continues to push company diversification into non-coal sectors. UNTR intends to expand gold production at the MARTABE mine this year. UNTR forecasts gold sales 235,000 oz this year, MARTABE expected produce 210,000 oz (higher than estimate last year) and SJR expected produce 25,000 oz. To streamline preparations in the gold industry, UNTR allotted Rp1.8tr CAPEX. CAPEX are often employed for exploration activities and mining facility upkeep. (Kontan)

INTP Targets an Increase of 1.5mn tons in Cement Sales this Year

INTP aims for an increase of 1.5mn tons of cement sales volume in 2024. The increase will come from the acquisition of Semen Grobogan (SGB), which the company completed on December 1, 2023. It is expected that Indocement will get an additional cement sales volume of around 1.5mn tons of cement that Semen Grobogan has sold. Furthermore, the company will optimize cement operations and distribution to pursue sales volume growth this year. (Investor Daily)

VICI Aims For Double-Digit Revenue Increase this Year

VICI is targeting double-digit revenue growth this year with a minimum net profit margin similar to 2023. There are several brands that are the main contributors to growth throughout 2023, such as Herborist, CBD Professional, and Nuface. VICI also has plans to open new outlets but it is still monitoring and studying the market. for CAPEX allocation the company cannot yet convey because it is still finalizing the 2024 budget. (Kontan)