The tug-of-war policy on subsidized fuel prices, the SUN market closed mixed. Investors are beginning to observe the positive impact of shifting fuel subsidies to more productive sectors. Meanwhile, part of the diversion of fuel subsidies was used by the government for three social assistances worth a total of IDR 24.2 trillion, with the hope of reducing the burden on some people due to rising inflationary pressures.
ICBP: Records 1H22 Profit of IDR1.93 T. PT Indofood CBP Sukses Makmur Tbk (ICBP) posted sales of IDR32.59 trillion, an increase of 16% YoY. Due to rising commodity prices, operating profit fell 8% YoY to IDR5.88 trillion. Net profit also fell 40% YoY to IDR1.93 trillion. Meanwhile, this happened because the unrealized foreign exchange loss arising from funding activities. (Emiten News)
Pertamina’s Non-Subsidized Fuel Prices Officially Drop. PT Pertamina (Persero) officially lowered three prices for non-subsidized fuel oil (BBM) on the night of August 31, 2022. The fuel prices that experienced a decline are Pertamax Turbo, Dexlite and Pertamina Dex fuels. The average price reduction is around Rp. 2,000 per liter for each type of nonsubsidized fuel. (CNBC Indonesia)
Indonesia experienced a deflation in August, according to a Bloomberg survey. Investors are waiting for the decision to increase the price of subsidized Pertalite and Diesel fuel, which will have an impact on production costs. Meanwhile, external sentiment still comes from the potential of the Fed’s aggressive Hawkish on the FFR hike in September. Meanwhile, the decline in a number of food commodity prices and the absence of an increase in Administered Prices made August MoM projected to record – 0.10% deflation (Vs. Jul. +0.64%).
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