Indonesia Interest Rate Stable at 5.75% in Feb-25

Indonesia Interest Rate Stable at 5.75% in Feb-25

BI maintained its benchmark interest rate at 5.75% in Feb-25, aligning with market expectations and its strategy to control inflation within the 2.5±1% target. January's annual inflation rate eased to 0.76%, the lowest since Mar-00. Despite global volatility, the Rupiah has only depreciated by 1.06% YTD, thanks to BI's proactive interventions to stabilize the currency. Overnight deposit and lending facility rates remain unchanged at 5% and 6.5%, respectively.

 

INDUSTRY
Finalization of Financing Procedures for Indonesia's 3 mn Homes Program
Indonesia's technical team, is finalizing the financing procedures for the ambitious 3 mn homes program. Key stakeholders have agreed to relax banking reserve requirements to support the housing sector. Bank Indonesia plans to increase microprudential liquidity incentives from IDR 23.19 tn to IDR 80 tn, while the govt. has allocated IDR 18 tn in the 2025 budget for housing liquidity facilities. The details of the financing procedures are expected to be announced soon.

 

COMPANY
Arwana Citramulia (ARNA) Net Profit Decreased in FY24
ARNA reported a net profit of IDR 425.96 bn for 2024 (-3.73% YoY; vs. IDR 442.49 bn in FY23). Despite the decline in profit, net sales increased to IDR 2.63 tn (+7.7% YoY), driven by a 7.4% rise in sales volume, particularly in 2H24, due to successful new products and anti-dumping tariffs on Chinese ceramics. The COGS rose to Rp1.72 tn (+11.68% YoY), impacting profitability. ARNA's total assets reached IDR 2.66 tn, with equity increasing slightly to IDR 1.87 tn by the end of 2024.