Aldira Sunrise 21 Mei 2024

Economy: Government aims 5.1% to 5.5% economic growth in 2025
The government aims to achieve economic growth between 5.1% and 5.5% in 2025, focusing on sustainable inflation, the development of the electric vehicle industry, digitalization, and climate change initiatives through green economy and energy policies. The government has allocated a social protection budget ranging from IDR 496.9T to IDR 513T. This budget will be used to expedite poverty alleviation and reduce regional disparities. The government has allocated a budget of IDR 708.2T to IDR 741.7T in the education sector. The health budget for 2025 ranges from IDR 191.5T to IDR 217.8T. (Jakarta Globe)
What we think: The government GDP growth target is within the consensus prediction of 5.1%. On the optimistic side, the expected Fed pivot and the lower interest rate may help the global economy recover, which should be favorable to boost Indonesia’s GDP growth..
ACES achieved 6.8% SSSG in Apr 2024
Ace Hardware (ACES) booked 6.8% SSSG in Apr 2024, which continues to be led by stores outside of Java, with Ex-Java recording the highest SSSG at 8.2% yoy, followed by Java ex Jakarta at 6.9% yoy, and Jakarta of 4.1% yoy. While ACES anticipates a moderate SSSG in May due to historical post-Ramadan trends, the multiple long weekends during the month provide a positive opportunity for sales. To capitalize on this, the company is running an electrical lighting fair from 1 May to 11 Jun. (ACES)
What we think: ACES’ April SSSG showed a positive trend, although it may decline in May due to the high base in April (Lebaran). We foresee ACES to post SSSG recovery this year backed by macro factors and the opening of new outlets.