Indonesia's GDP Grew 4.87% YoY in 1Q25, Below Expectations

Indonesia's GDP Grew 4.87% YoY in 1Q25, Below Expectations

Indonesia's economy expanded by 4.87% YoY in 1Q25, missing the 4.91% forecast and slowing from 5.02% in 4Q24, its weakest pace since 3Q21. Growth was weighed down by a contraction in government spending (-1.38% vs +4.17%) due to fiscal tightening, alongside slower growth in household consumption (4.89% vs 4.98%) and investment (2.12% vs 5.03%). The Govt. maintains its 2025 GDP target at 5.2%, though the Finance Minister warned new U.S. tariffs could cut growth by 0.3–0.5ppt. (Trading Economics)

INDUSTRY
Danantara and Eramet Consider Investing in Huayou's Nickel HPAL Smelter in Weda Bay 
Danantara and France's Eramet SA are reportedly in talks to acquire a stake in a nickel HPAL smelter in Weda Bay, North Maluku, majority-owned by China's Zhejiang Huayou Cobalt. A MoU is targeted for signing by end-May-25, though discussions are still ongoing. Huayou has invested USD 8.8 bn in Indonesia and may add up to USD 20 bn more, following LG's exit from the national EV battery project. (Bisnis.com)

COMPANY 
Bukit Asam (PTBA) and Perusahaan Gas Negara (PGAS) to Develop USD 3.2 Bn Synthetic Gas Project 
PTBA in collaboration with PGAS, is developing a coal downstream project to produce synthetic natural gas (SNG). The estimated investment for the construction of the plant is around USD 3.2 bn. According to the Co., PTBA will act as the coal supplier in the joint venture with PGAS and Mitra Teknologi. The project is expected to convert low-calorie coal into SNG with a daily production target of around 240 bn BTU. (Bisnis.com)

Pegadaian Reported 5.32 Tons of Gold Managed Through Bullion Services 
PT Pegadaian has reported managing a total of 5.32 tons of gold through its bullion services. The services include gold-backed loans (PMK), gold trading, gold deposits, and corporate gold custody. As of Apr-25, the total transaction value reached approximately IDR 1.9 tn. According to the Co., the largest contributions came from corporate custody and gold deposits. (Kontan)