• Economy: MBDK excise tax depends on economic conditions
Economic conditions in the 1Q25 and 2Q25 will determine the implementation of the excise
policy on packaged sweetened drinks (MBDK). Directorate General of Customs and Excise,
Ministry of Finance, Askolani, said that the government will still consider national economic
conditions regarding the implementation of this new excise policy. Previously, Director of
Revenue and Strategic Planning DJBC Ministry of Finance Muhammad Aflah Farobi said that
currently, the government is in the process of outreach to companies and associations. He
explained that the plan to implement MBDK excise is likely to be implemented as the
government will require additional revenue in the current economic condition. He also added
that they are currently preparing the process of implementing MBDK excise, much more
seriously compared to previous years. The government is also preparing a Government
Regulation (PP) for the implementation of MBDK excise. Apart from that, there also needs to
be a Minister of Finance Regulation (PMK) to regulate this policy. (Kontan)
• MARK projects net profit to exceed its target by the end of 2024
Mark Dynamics Indonesia (MARK) is optimistic that its financial performance at the end of
2024 will exceed its set target. The company projects a net profit of IDR 280B, higher than
the initial target of IDR 250B. This optimism is driven by the surge in global demand for
printed gloves, especially from major export markets, as well as import tariff policies in the
United States which benefit the domestic industry. As of 3Q24, the company has recorded
an IDR 221.1B net profit (+124.5% yoy), in line with 74% growth in revenue to IDR 698.11B. The
majority of sales came from the export sector worth IDR 582.89B (+90.67% yoy), as well as
local sales which rose 20.8% yoy to IDR 115.21B. Based on sustainable growth trends, MARK
projects total sales in 2024 will exceed IDR 800B. Continuously increasing global demand has
also increased the company’s production capacity utilization, especially in the 4Q24, in line
with the aggressive expansion strategy that has been implemented. The global glove
industry experienced a significant increase in production in 2024, driven by increased
awareness of hygiene and safety, particularly in the medical and industrial sectors. Large
glove manufacturers in Malaysia and Thailand are also expanding production capacity to
meet growing market needs, which has a positive impact on demand for glove molds from
MARK. Export markets continue to be the main driver of MARK’s growth. Countries such as
Malaysia, Thailand and China are the largest contributors, with Malaysia contributing 40% of
total sales, followed by Thailand (25%), China (22%), Vietnam (5%), and other countries ( 5%).
(Kontan)
• SGRO projects FFB production to fall by 10% in 2024
Sampoerna Agro (SGRO) projects core fresh fruits bunch (FFB) production to fall by 10% in 2024. The decline in production was caused by the impact of El Nino which occurred in 2023 – 2024. This is in line with estimates from GAPKI which estimates that national CPO production will be lower by approximately 4-6% yoy in 2024. The price of crude palm oil (CPO), is still high, although it has been corrected in the last month. According to Trading Economics, the CPO price is currently at MYR 4,449 per ton. That figure fell 13.07% in the last month, but has risen 20.17% in the last year. Even though there has been a decline in CPO prices in the last month, the average price of CPO (FOB Malaysia) in the 4Q024 has increased by 21% qoq. The increase in CPO prices was supported by better production in 4Q24 compared to 3Q24. This will have a positive impact on the company’s performance, especially in the 4Q24. Apart from that, the government’s discourse to increase biodiesel from B30 to B40 will increase demand for CPO for the domestic market in 2025, when compared to 2024. Sentiments that can maintain CPO prices in the 1H25 are seasonal soft production for CPO, increased demand ahead of Ramadan and Idul Fitri in the first quarter, as well as the B40 biodiesel mandate which will be implemented this year. For the production target in 2025, SGRO admitted that it is in the process of preparing a budget. However, it is optimistic that the production of fresh fruit bunches (FFB) from the company’s core plantations is expected to improve this year. GAPKI estimates that national CPO production will experience an increase of 4-5% in 2025. (Kontan)
