Indonesia Retail Sales Rebounded 1.9% YoY in May-25

MACROECONOMY 
US Plans AI Chip Export Restrictions on Malaysia and Thailand Over China Concerns 
The Trump administration is drafting new rules to restrict exports of advanced AI chips to Malaysia and Thailand, fearing the chips may be rerouted to China. These Southeast Asian countries have seen a surge in chip shipments and now face scrutiny as potential transshipment hubs. The draft rule, part of Trump's tougher stance on AI trade, would mark a shift from Biden-era policies and retain broader semiconductor export bans to over 40 countries. Temporary waivers are expected for allied firms to avoid disrupting global supply chains. (Kontan)

Indonesia Retail Sales Rebounded 1.9% YoY in May-25 

Indonesia's retail sales rose 1.9% YoY in May-25, rebounding from a 0.3% drop in Apr-25 the first decline in over a year. Growth was led by food, beverages & tobacco (+4.0%) and recreational goods (+4.7%). Sales contractions eased for appliances (-5.8%) and clothing (-0.3%), while tech products remained weak (-27.4%). Monthly sales fell 1.3% in May-25, a softer decline than Apr-25's -5.1%, supported by holiday spending. June sales are expected to grow 2.0%, driven by fuel, auto parts, and clothing. (Trading Economics)

INDUSTRY 
Otoritas Ibu Kota Nusantara (OIKN) Estimated IDR 48.8 tn Budget for Phase II of Capital City (IKN) Project OIKN projected a budget of IDR 48.8 tn for Phase II of the IKN project during Jan-25 to 2028. In 2025 alone, OIKN targeted IDR 14.4 tn, mostly for KIPP infrastructure, including legislative and judiciary zones. For 2026, the budget proposed to the Ministry of Finance was IDR 21.1 tn (vs indicative ceiling IDR 5 tn). In 2027–2028, OIKN needs IDR 14.6 tn and IDR 2.7 tn, respectively. (Kontan)

COMPANY 
Sarana Menara Nusantara (TOWR) Secured IDR 400 Bn Credit Facility for Its Subsidiary 
TOWR announced that its subsidiary, PT Profesional Telekomunikasi Indonesia (Protelindo), has signed a credit facility agreement with PT Bank ICBC Indonesia for IDR 400 bn, with a 12-month tenor. This strategic move aims to bolster Protelindo's funding structure to support its expansion and business development, with no material impact on its operations or financial position. (Emitennews) 

Dharma Satya Nusantara (DSNG) to Settle IDR 176 Bn Series B Bonds 
Dharma Satya Nusantara (DSNG) has announced its readiness to settle the IDR 176 bn Series B bonds, due on 30 Jul-25. The bonds are part of a larger IDR 451 bn bond issuance, with funds used to repay part of DSNG's loans from BCA. (Kontan)