Lower oil price started to take oil and gas import down as December figure denoted negative growth.
Although have been aggressively adjust the time deposit pricing, the effect on bottom line is manageable as time deposit does not dominate the big banks’ book. Certain smaller banks, such as BBTN would also have better protection again NIM pressure as sizeable portion of their lending is...
There are some concerns of government’s opportunity to raise subsidized fuel price after 2019 election.
With national elections around the corner, Jokowi seems to be backtracking on his reform agenda with a string of populist measures. Jokowi plans to keep electricity tariffs and fuel prices unchanged over the next two years by hiking energy subsidies in draft state budget 2019.
New contracts could improve in 2H18 as the acceleration in infrastructure project will be faster in 2H due to the backend loading of infra-spending. Moreover, contractors under our coverage still book higher earnings growth in 2Q18 by 68% on average.
We believe solid backlog order until October 2019 for mining equipment as miners need to increase production and replace ageing equipment will support our view.
EU has been using palm oil primarily for biodiesel mix and demand from the region has been relatively flat as palm oil infamously recognized as environmentally unfriendly product.
The residential property market is relatively in at better state compared to other subsectors as the growth in house prices were more sustainable at aggregate 3.3% YoY in 2Q18 and according to BI prediction will maintain at 3.3% in 3Q18.