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.