- Economy: Trade surplus maintained despite plunging exports
Statistics Bureau (BPS) reported that Indonesia registered a USD 3.56B surplus in Apr 24. Despite the solid four-year-long positive trade balance, Indonesia’s total surplus in April was still lower than in Mar 24 as exports decreased to USD 19.62B last month (-13% mom, +1.72% yoy), while imports declined by 10.58% mom (+4.64% yoy) in Apr 24 at USD 16.06B. The surplus in 5M24 totaled USD 157.21B, mainly from USD 224.15B surplus in the non-oil and gas sector surplus. (BPS, Jakarta Globe)
What we think: The decline in exports and imports was caused by the shorter working days in Apr 24. However, we see a declining trend in exports due to the lower prices of commodities such as coal and metals. - AMRT will add a digital platform-based business line
Sumber Alfaria Trijaya (AMRT) plans to add a digital platform-based business line focusing on its online shopping services and websites, namely Alfagift. There are at least three reasons why Alfamart intends to add new business activities. First, the company sees the development of the digital industry as having profitable business prospects and becoming part of the modern lifestyle. Second, AMRT seeks to improve service and convenience for consumers in shopping by presenting transaction features on Alfagift. Third, the increase in the number of Alfagift members is expected to contribute to boosting the company’s sales. (Bisnis Indonesia)
What we think: Alfagift’s online sales contributed more than 6% to total revenue in 1Q24, with the size of the online basket being twice or more than the offline basket. AMRT projects the addition of Alfagift as a new business line will increase revenue and gross profit by 4.56% and 2.95%, respectively.