• Economy: 12% VAT will officially begin on 1 Jan 25
The government decided to continue implementing the 12% Value Added Tax (VAT) policy,
which came into effect on 1 Jan 25. Coordinating Minister for Economic Affairs, Airlangga
Hartarto, said that the 12% VAT rate policy is in accordance with the mandate of the Law on
Harmonization of Tax Regulations (UU HPP). Airlangga said that to maintain people’s
purchasing power, the government is providing economic policy stimulus. For low-income
households, VAT is borne by the government at 1% or only 11% is charged. The basic goods
subject to the 11% tariff are cooking oil in Minyakita packaging, wheat flour, and industrial
sugar. For goods needed by the public, VAT is given facilities or 0%. Basic necessities such as
rice, meat, fish, eggs, vegetables, milk, educational services, and public transportation, are all
VAT free. (Kontan)
• BSDE prepares IDR 202B tender offer to acquire SMDM
Bumi Serpong Damai (BSDE) announced the implementation of a mandatory tender offer for
a maximum of 382,016,642 shares, equivalent to 8.01% of the total shares of Suryamas
Dutamakmur (SMDM). The offering price was set at IDR 531 per share with maximum funds
prepared at IDR 202.85B. In connection with this, the company has sufficient funds available
and can make full settlement and payment in this mandatory tender offer. BSDE is known to
have taken over 91.99% of SMDM shares from Top Global Limited (TGL), a property investment
company from Singapore, which still has an affiliation with the Widjaja family. The mandatory
tender offer will be open for 30 days starting 17 Dec 24 to 15 Jan 25. BSDE management stated
that the company has no plans to liquidate SMDM, delist the company’s shares on the IDX,
go private, and not change personnel policies for employees. BSDE Director Hermawan
Wijaya explained that the acquisition of the majority of SMDM shares was aimed at
increasing land reserves. This is expected to contribute positively to the long-term
development of the BSDE project. Based on management projections, in general, the
transaction plan will increase total revenue to BSDE’s net profit. The takeover is also believed
to increase assets, equity, and cash from the company’s operating activities. (Bisnis
Indonesia)
• SIDO prepares capex of up to IDR 170B in 2025
Sido Muncul (SIDO) allocates a capex of around IDR 150 – 175B for 2025. Most of it will be used
for maintaining production facilities and developing technology or digitalization to support
operations and marketing. Next year, SIDO is targeting low double-digit performance
growth, at least 10% in both revenue and net profit. The company is optimistic that this target
will be achieved through expanding domestic and export markets. To support the realization
of this target, the company will expand distribution while presenting herbal-based beverage
and supplement products designed for Generation Z and Millennials. On the other hand,
international expansion will also continue. Currently, SIDO has marketed its products to the
Arabian Peninsula countries, the Economic Community of West African States (ECOWAS),
and the Indochina region. In the future, Vietnam and Thailand will be the next target
countries for expansion. (Kontan)
