Govt. Plans MBG Efficiency Program to Save IDR 40 tn Annually

MACROECONOMY 

Govt. Plans MBG Efficiency Program to Save IDR 40 tn Annually Indonesia’s 
govt. is reviewing an efficiency proposal under the MBG program that could generate savings of up to IDR 40 tn per year, aimed at optimizing fiscal spending and improving budget allocation effectiveness. The proposal, currently under discussion, reflects efforts to maintain fiscal discipline amid rising macroeconomic pressures. (Bloomberg Technoz) 

INDUSTRY 

Friderica Widyasari Dewi Prioritizes Restoring Investor Confidence as OJK Leader 
Friderica Widyasari Dewi officially assumes leadership at the Financial Services Authority (OJK), emphasizing that restoring investor confidence will be a key priority amid ongoing market volatility and governance concerns. She highlighted the importance of strengthening supervision, improving transparency, and ensuring fair market practices to enhance credibility in Indonesia’s financial system. OJK also aims to deepen market participation and reinforce regulatory frameworks to support sustainable capital market growth, while maintaining stability and protecting investors in an increasingly uncertain global environment. (Investor.id)

COMPANY 

BCAS: BBRI IJ - 2M26 Earnings Grew +17.0% YoY 
- BBRI booked Feb-26 net profit at IDR4.0tn (+7.7 QoQ; -12.8% YoY), bringing 2M26 earnings to IDR 7.7tn (+17.0% YoY). 
- Net interest income reached IDR 9.4tn in Feb-26 (-4.4% QoQ; +0.2% YoY), lifting 2M26 net interest income to IDR 19.1tn (+4.8% YoY). 
- Operating income came in at IDR12.7tn in Feb-26 (-6.3% QoQ; -6.2% YoY), bringing 2M26 operating income to IDR 26.2tn (-1.2% YoY). 
- Provisioning declined to IDR3.4tn (-17.4% QoQ; +2.6% YoY), bringing 2M26 provisions to IDR7.5tn (-15.8% YoY). 
- PPOP stood at IDR8.4tn in Feb-26 (-4.2% QoQ; -8.8% YoY), bringing 2M26 PPOP to IDR17.2tn (-1.7% YoY). 
- NIM edged up to 6.3% in 2M26 (vs. 2M25: 6.2%), while loan growth remained solid at +10.5% YoY. LDR rose to 89.2%, with the CASA ratio improving to 67.4% (vs. 2M25: 64.9%).

BCAS: WIFI IJ - 4Q25 - solid performance, net profit grew 87.6% yoy, above ours and consensus estimate 
- WIFI 4Q25 net profit (+87.6% yoy) supported by strong growth of telco segment, forming FY 2025 net profit of IDR 408.6 bn or 120% of our projection. 
- 4Q25 EBITDA margin increased to 70% (+19.7pp yoy) as advertising segment rebound to book profit, FY2025 EBITDA stood at 67%. 
- 4Q25 Telco segment revenue rose 365% yoy, despite a slow 4% qoq, we find negative qoq growth telco revenue in 4Q24, which might indicate a slower demand in B2B segment. 

our view: 4Q25 results was solid, telco segment growth was on track: we are waiting for details on operational numbers in the upcoming earnings call. We will provide more details and revisit our projection.