• Global: Economists predict The Fed to reduce rate by 50bps in 2025
Economists are forecasting that the U.S. Federal Reserve (The Fed) will reduce interest rates
by 50 basis points (bps) in 2025. This projection aligns with market expectations following
the Federal Open Market Committee (FOMC) meeting in November, which lowered the
Federal Funds Rate (FFR) to 4.5%–4.75%. However, the pace of rate cuts is anticipated to
decelerate in December. The probability of a rate cut in December is currently estimated at
50%–60%, with an additional 50 bps reduction expected next year. This outlook is influenced
by recent hawkish comments from policymakers, indicating that economic growth and
potential inflation pressures may lead to a more cautious approach to future
rate cuts. (Reuters)
• Retail: Aprindo asks the government to postpone the 12% VAT
The Indonesian Retail Entrepreneurs Association (Aprindo) asked the government to
postpone the planned increase in Value Added Tax (VAT) to 12% which is planned to take
effect on 1 Jan 25. The former General Chair of Aprindo, Roy Nicholas Mandey, stated that this
policy could hamper the recovery of people’s purchasing power which was just starting to
improve after five consecutive months of deflation. Based on data from the Central Statistics
Agency (BPS), deflation for five consecutive months at the beginning of 2024 resulted in a
decline in domestic demand and slower household consumption. It was only on Oct 24 that
inflation was recorded again, indicating that demand was starting to recover. However, the
long-term impact of deflation means retail sector growth in 2024 is expected to fall to 4.8%,
compared to 5.3% in 2023. (Kontan)
• ADRO will distribute IDR 41.77T dividend and change its name to Alamtri
Resources Indonesia
Adaro Energy Indonesia (ADRO) has held an Extraordinary General Meeting of Shareholders
(EGMS). The meeting approved two agenda items, namely additional final cash dividends and
a change of name to Alamtri Resources Indonesia. Shareholders approved the use of a
portion of ADRO’s unappropriated retained earnings as of 31 Dec 23 to be distributed as an
additional final cash dividend of up to USD 2,629,396,000. If converted using the Jisdor
exchange rate of IDR 15,888 per USD, this value equals IDR 41.77T. However, today’s EGMS
has not announced the exact dividend payment amount. (Kontan)
• APLN sold the Pullman Vimala Hills Resort for IDR 1.8T
Agung Podomoro Land (APLN) has announced the sale of the Pullman Vimala Hills Resort
Spa & Convention Hotel to Putragaya Wahana for IDR 1.18T. The transaction is scheduled for
completion on 15 Dec 24. APLN plans to allocate the proceeds towards debt repayment and
funding ongoing property development projects. This strategic divestment aims to
strengthen APLN’s financial position and support its expansion initiatives. (Stockwatch)
• WSKT’s subsidiary buyback 53.78M shares of KKDM
Waskita Karya Realty (WKR), a subsidiary of Waskita Karya (WSKT), has repurchased 53.78M
shares of Kresna Kusuma Dyandra Marga (KKDM) from Kresna Kusuma Dyandra (KKD) for
IDR 53.78B. This transaction increases WKR’s ownership in KKDM to 99.99%, consolidating its
control over the company. KKDM is engaged in the development of the Becakayu Toll Road
project, a significant infrastructure initiative in Indonesia. This strategic move aligns with
WKR’s objective to strengthen its portfolio in the infrastructure sector, potentially enhancing
its revenue streams and market position. (Stockwatch)
