BI Seeks to Hold Line Against Fed Tightening
The Federal Reserve's tightening of monetary policy has sparked concerns about Indonesia's ability to maintain economic stability. Research from BRI Danareksa Sekuritas suggests that the country's central bank, Bank Indonesia (BI), may be able to hold the line against inflation and currency fluctuations.
A study by the research firm found that BI's policy carry provides a strong short-term buffer against economic shocks. This is due in part to earlier hikes in interest rates, which have strengthened BI's policy buffer and allowed for targeted measures rather than further rate increases.
In terms of specific company performance, AZKO reported a sequential improvement in sales growth, with revenues reaching IDR 6.1 trillion (IDR 6,100,000,000) in the first eight months of this year. The company's SSSG (same-store sales growth) reached +2.4%, supported by store expansion and improving sales across both Jakarta and non-Java regions.
Meanwhile, AMMN reported strong second-quarter results, with net profit reaching $388 million (+142% q-q). The company's EBITDA rose to $725 million (+64% q-q), with margin improving to 58% from 55% in the previous quarter. Revenue reached $1.244 billion in the second quarter, with gold remaining the key growth driver.
In other news, BYAN subsidiaries have secured additional coal production quotas totaling about 15-20 million tons under a revised RKAB 2026. JSMR has also injected a Rp 6.54 trillion shareholder loan into JJC via JTT to fund operational needs.