Indonesia Industrial Confidence Index (IKI) Rose to 53.50 in Oct-25, Only Textile Sector Contracted

MACROECONOMY 
Trump Cuts China Fentanyl Tariff to 10%, Beijing Delays Rare Earth Export Ban 
U.S. President Donald Trump cut the fentanyl-related tariff on China to 10% after meeting President Xi Jinping in Busan, where both agreed to delay China’s rare earth export ban for one year. The decision, which also lowered overall U.S. tariffs on Chinese goods to 47% (from 57%), signals easing trade tensions. China pledged stronger fentanyl control and will resume U.S. soybean imports, while both sides paused shipping tariff probes for a year. Trump confirmed plans to visit China in Apr-26, followed by Xi’s return visit to Washington. (Stockwatch) 

INDUSTRY 
Indonesia Industrial Confidence Index (IKI) Rose to 53.50 in Oct-25, Only Textile Sector Contracted 
IKI increased to 53.50 in Oct-25 (vs Sep-25; 53.02), remaining in the expansion zone for the 16th consecutive month, supported by stronger domestic and export-oriented manufacturing. New orders rose 1.46 pts to 55.25, while product inventories climbed 0.66 pts to 56.52. However, the production sub-index dipped 1.28 pts to 48.57 as industries met rising orders using existing stock. Out of 23 manufacturing sub-sectors, 22 expanded, led by tobacco and paper products, while only the textile sector contracted due to cyclical demand adjustments in global markets. (Kontan)

COMPANY 
BCAS: BBRI IJ - 3Q25 Earnings Below Estimates
- Net profit rose to IDR 14.5tn (+15.1% QoQ; -5.6% YoY), bringing 9M25 earnings to IDR 40.8tn (-9.5% YoY) — below consensus at 72% of FY25F. 
- Net interest income reached IDR 37.7tn (+0.8% QoQ; +3.1% YoY), lifting 9M25 NII to IDR 110.9tn (+2.9% YoY). 
- Operating expenses increased to IDR 37.1tn (+1.0% QoQ; +37.2% YoY), pushing the CIR higher to 44.6% in 3Q25 (vs 43.2% in 2Q25). 
- Provisioning declined to IDR 10.3tn (-6.1% QoQ; -5.8% YoY), bringing 3Q25 PPOP to IDR 28.4tn (+0.1% QoQ; -6.8% YoY). 
- NIM remained solid at 7.7% (vs 7.8% in 2Q25; 8.1% in 3Q24), while LDR stood at 86.5% (1H25: 85.0%; 9M24: 89.2%). ROE improved slightly to 17.0% (vs 16.6% in 1H25; 19.2% in 9M24).