Solusi Kemasan Digital (PACK) to Execute 100 bn Shares Right Issue

Solusi Kemasan Digital (PACK) to Execute 100 bn Shares Right Issue 
PACK received approval to issue up to 100 bn new shares with a nominal value of IDR 10 each. The proceeds will be used for loan repayments, capital expenditures, investments, or working capital, aiming to improve the Co's financial structure and operational capacity. Non-participating shareholders risk a 98.48% ownership dilution, prompting the Co to encourage full shareholder participation. (Emitennews)

MACROECONOMY 
US ISM Manufacturing PMI Rose to 49.3 in Dec-24 
The ISM Manufacturing PMI increased by 0.9 points to 49.3 in Dec-24, exceeding market expectations of 48.4. This marks the mildest contraction in US manufacturing since Mar-24 (50.3), the only month of expansion since Sep-22. New orders surged to 52.5, reflecting the highest demand in 11 months and signaling a potential bottoming out of lower output despite restrictive Fed interest rates. Production also grew (50.3) for the first time in six months. However, the price gauge rose to 52.5, surpassing expectations of 51.7, fueling inflation concerns. (Trading Economics)

INDUSTRY 
Cigarette VAT Rate to Increase in 2025 Despite Not Being a Luxury Good 
The Directorate General of Taxes at the Ministry of Finance confirmed that the VAT rate for tobacco products, including cigarettes, will increase from 9.9% to 10.7%, as outlined in Regulation No. 63 of 2022. This adjustment will proceed even though cigarettes are not classified as luxury goods, following the prescribed calculation scheme. For instance, a cigarette producer with a retail selling price (HJE) of IDR 1.140/stick for 1 mn packs will owe VAT amounting to IDR 1.95 bn. (Bloomberg)