• Economy: Government relaxes import rules for electronic products, footwear, textiles
The coordinating minister for economy said that the government has relaxed import rules for electronic products, footwear, and textiles. The steps were taken to process imported items that have piled up in ports quickly. in March, the government tightened import rules impacting more than 3,000 goods, aiming to protect domestic industries from an influx of products, including by requiring importers to obtain a permit and a recommendation. In April, further regulations to restrict imports of electronic goods, including air conditioners, refrigerators and laptops, were announced. Since then, more than 26,000 of containers have been stuck at the country’s two biggest seaports due to bureaucratic hurdles, the government said. (Kontan)
What we think: The government should map the import rule so products that Indonesia does not have a production base should have fewer import restrictions. To strengthen the domestic industry, the government should provide more incentives for manufacturing and not only focus on mineral processing. However, the government should also strengthen the purchasing power of the middle income to make investment attractive.
• ENAK’s net profit rose 406% in 1Q24
Champ Resto Indonesia (ENAK) recorded IDR 15.46B net profit in 1Q24 (+406% yoy), driven by stronger sales of 27.5% yoy to IDR 397.45B. In detail by segment, ENAK’s revenue was contributed by Gokana Restaurant at IDR 113.57B, followed by Raacha at IDR 134.56B, Monsieur Spoon at IDR 116.34B, and others at IDR 32.98B. (Bisnis Indonesia)
What we think: The fastest-growing brand is Monsieur Spoon (+76.6% yoy), followed by Gokana (+16.4% yoy), and Raacha (+10.2% yoy). Gross and net margins went up to 64.2% (+210bps yoy) and 3.90% (+290bps yoy), subsequently.
