FROM EQUITY RESEARCH DESK

IDEA OF THE DAY

Bank Central Asia: FY25 Results: Improving Asset Quality and CASA Deposit to Navigate the Lower Loan Yield in FY26F (BBCA.IJ Rp7,500; BUY TP Rp11,400)

• BBCA booked NP of Rp14.1tr in 4Q25 bringing its FY25 NP to Rp57.5tr (+5% yoy), slightly above our estimate but in line with consensus.
• Management expects a higher loan growth of 8-10%, lower NIM of 5.4-5.6%, stable CoC of 40-50bps, and improving consolidated CIR at 31-33%.
• Maintain BUY with a higher TP of Rp11,400 taking into account the higher FY26F ROE as we adjusted FY26 earnings by +5% from lower opex.

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Bank CIMB Niaga: Portfolio Rebalancing and Income Diversification Drives Structural ROE Recovery; Initiate with Buy (BNGA.IJ Rp1,850; BUY TP Rp2,300)

• We expect BNGA’s portfolio shift toward consumer and midsize SME to support yield, benefiting from its scale and differentiated positioning.
• We forecast net profit growth of 6.4-11.3% in FY26-27F and higher ROE of 12.8-13.4%, supported by stable margins and income diversification.
• Initiate coverage with a Buy rating and a GGM-based TP of Rp2,300, with improving ROE as potential catalyst for re-rerating.

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MARKET NEWS

SECTOR

Commodity Price Daily Update Jan 27, 2026

Indonesian Government Targets Rp332tr Credit Programs in 2026

The government plans to distribute Rp332tr in credit programs in 2026, including KUR, Alsintan, KIPK, and housing loans, to support inclusive economic growth. New rules lower KUR Super Micro interest to 3%, keep Micro and Small KUR at 6%, expand access for productive and export sectors, and provide 0% interest KUR in 2026 for disaster-affected areas. (Kontan)

 

Indonesian Government to Expand People’s Schools to 270 Locations Nationwide

The government will build 104 new People’s Schools in 2026, expanding the total to 270 locations nationwide and targeting 60,000 students. The program supports broader access to education, with construction by the Ministry of Public Works and land provided by local governments. (Kontan)

 

IIMS 2026 Targets Rp8tr in Transactions

Dyandra Promosindo will hold the Indonesia International Motor Show (IIMS) 2026 on February 5–15, 2026, at JIExpo Kemayoran, Jakarta, targeting transactions of at least Rp8tr, in line with IIMS 2025 results. The exhibition area expands to 156,170 sqm, featuring 35 car brands and 26 motorcycle brands, including new Chinese entrants. Organizers are optimistic the event will help boost the automotive market amid declining vehicle sales in 2025, with a target of over 570,000 visitors. (Bisnis)

 

CORPORATE

AMRT Enters Bangladesh with First Store in Dhaka

AMRT officially entered Bangladesh by opening its first store in Dhaka in January 2026 through a joint venture with Kazi Farms. Valued at US$120mn, the expansion targets Bangladesh’s strong market fit and infrastructure, marking AMRT's next international move after its success in the Philippines. (Nikkei Asia)

 

AUTO Expands into Philippines

AUTO has started manufacturing operations in the Philippines with its first component shipment to Honda Philippines. This marks AUTO’s entry into the local OEM supply chain, supporting its export expansion strategy amid strong growth prospects in the Philippine motorcycle market. (Bisnis)

 

TPIA Secures US$250mn Loan to Fund Esso Singapore Acquisition

TPIA is reported to have secured a US$250mn loan from Bangkok Bank and Indonesia Investment Authority (INA) to support its acquisition of Esso-branded fuel stations in Singapore from ExxonMobil. The eight-year facility will partly fund the equity portion of the deal, which has been completed following regulatory approvals, as part of TPIA’s strategy to build an integrated regional energy infrastructure platform. (Bisnis)

 

WIFI Subsidiary Secures Operational License for FWA

PT Telemedia Komunikasi Pratama, a subsidiary of WIFI, has successfully completed its operational feasibility test and obtained an official license to provide FWA services under the Internet Rakyat program. Speed tests conducted on both laptops and smartphones show that the service exceeds the minimum required download speed standard, reaching up to 100 Mbps. (Kontan)