Rates and FX weekly recap: Weaker US jobs data drives yields lower, but the USD is still stronger on a weekly basis.

We visited one of the pilot Merah Putih village cooperatives (KDMP) in Hambalang, Bogor, West Java.

MYOR remains confident in achieving double-digit YoY sales growth in FY25, with GPM expected to recover to 22-25% in 3Q/4Q25.

2Q25 results have underwhelmed, with 78% of coverage reporting and beat-to-miss ratios weakening.

In 1H25, NCKL booked a net profit of Rp4.1tn (+46% YoY), which was above our/consensus forecasts, due to a combination of higher revenues, lower cost, and higher contribution from income from associates.

We attended ASII’s analyst call, wherein the management mentioned that the weak purchasing power has affected ASII’s automotive performance,

The government will hold another conventional bond auction on 6-May, targeting Rp26tn, with a maximum issuance of up to 150% of the target (same as the previous auction).

Despite lingering downside risks to 2Q25 EPS, equity valuations remain discounted and reflect much of the pessimism already.

We now set conservative ROE forecasts of 9.3%-10.0% in 2025-27F and retain our BUY rating with new PT Rp1,380. More meaningful ROE recovery depends on benchmark rate cuts, but several positive developments add quality to current ROE trajectory i.e.

Slower growth. GDP growth moderated to 4.9% in 1Q from 5.0% in 4Q, broadly in line with expectations (It’s marginally lower by two digits than expected – Actual: 4.87%, Mansek: 4.91%, Consensus: 4.92%), led by softer domestic demand (Exhibit 1).

The latest Indo banks stock price rebound was driven by improving liquidity expectations and cost of equity outlook. Since hitting bottom on 14 Jan 2025, the Big 3 SOE banks have rebounded by 13%-16% until today while BBCA only rebounded by 1%.

Dec-24 saw weak domestic vol with the industry’s falling -12% yoy. INTP did a commendable +2.6% yoy, off a comparable base with Semen Grobogan inclusion beginning Dec-23, helped by bulk cement.