Indonesia's Consumer Confidence Declines for Second Month

 

Indonesia's Consumer Confidence Declines for Second Month 

Indonesia's consumer confidence fell to 126.4 in Feb-25, (vs 127.2 in 
Jan-25), marking the lowest level since Nov-24. The decline was 
driven by weakening purchasing power and a shrinking middle class. 
Most sub-indices dropped, including job availability (-2.8 to 134.2), 
economic outlook (-2.1 to 138.7), and income expectations for the 
next six months (-1.5 to 143.3). However, current economic 
conditions (+0.7 to 114.2) and current income expectations (+0.1 to 
122.7) showed slight improvements. (Trading Economics)

 

RESEARCH REPORT 
Telco Sector - It's not me, it's you (macroeconomic)! 

• Downgrade to Neutral on telco sector
• Smaller gap on network quality; pricing speaks louder  
• It's really macroeconomic problem
• Affordable internet as new competitor  
• Undemanding valuation with attractive dividend yield 
  (Please refer to our report here) 

COMPANY 
BCAS: 2M25 - 4W Wholesales 

- Astra posted sales of 38,546 units in Feb-25 (-6.5% yoy and +11.6% mom), Astra sales dropped yoy due to weak sales ex-Toyota, while non-Astra peers posted positive 14.3% yoy  and 23.2% mom; Therfore Astra's market share in Feb-25 dropped to 53.3% (vs 55.8% in 
Jan-25).  
- Mitshubishi is the only Japanese brand posted positive growth, the others Japanese and Korean peers posted slight yoy declined in  Feb. Wuling sales rebounded in Feb-25 after slow Jan-25, which we think the company already build up the inventory in dealer since 
Dec-24. 
- Feb-25 sales was also supported by the IIMS exhibition, Other smaller brands increased nicely 40.2% yoy. 
- 2M25 accumulative sales slightly declined by 4.5%, accounted for 15-18% of Gaikindo target of 750-900k sales in 2025