Aldira Sunrise 3 Juni 2024

Economy: Pertamina holds non-subsidized fuel prices steady for Jun 24
Pertamina decided not to increase non-subsidized fuel prices in Jun 024. This move aligns with the government’s efforts to maintain economic stability amidst rising global oil prices and the weakening of the Indonesian rupiah against the US dollar. Pertamina adjusts its fuel prices monthly based on the US dollar exchange rate and the Mean of Platts Singapore (MOPS). (Jakarta Globe)
What we think: Non-subsidized fuel prices are one of the determinants of inflation; hence, the decision should keep June inflation at around 3%. The consensus predicted the May inflation to be around 2.94% to 2.98%, and, ceteris paribus, the June 24 inflation should be higher than the May inflation due to the higher transportation factors during the school holiday.
CLEO allocates IDR 450B capex to add 3 new factories
Sariguna Primatirta (CLEO) plans to expand its expansion in several regions in Indonesia by opening three new factories, each in Pontianak, Pekanbaru, and Palu. Thus, by the end of 2024, the total number of operating factories owned by the Company will be 35. The company has budgeted a capex of IDR 450B for this expansion in 2024. (Kontan)
What we think: The addition of new factories is in line with the company’s strategy to expand its operations outside of Java. In 1Q24, Java and Bali are still a major contributor to revenue at 81.8% of the total IDR 626.54B. Currently, 8 out of 31 factories are located outside of Java and Bali, that is in Sumatera, Sulawesi, Kalimantan, and West Nusa Tenggara.