The increase in deposits and CASA funds drove improvements in banking liquidity in 6M25. The Indonesian banking sector's Loan to Deposit Ratio (LDR) was booked at 86.40% (-176 bps MoM; +65 bps YoY) in June 2025.Five cuts in the benchmark interest rate will boost loan growth. Bank Indonesia (BI) lowered the interest rate by another 25 bps to 4.75% in September 2025, marking the fifth such reduction in 2025.Asset quality improvements have the potential to continue in the 2H25. Non Performing Loan ratio (NPL) remained stable at 2.17%, down 60 bps YoY and 60 bps MoM in June 2025.The Macroprudential Liquidity Policy, along with the transfer of IDR 200 trillion from the state budget to Himbara, has the potential to increase banking liquidity.The trend in Islamic financing distribution in Indonesia shows positive growth, with total Islamic banking assets reaching nearly IDR 967 trillion in June 2025, and Islamic financing growing 8.38% YoY compared to conventional bank loan growth of +7.77% YoY in June 2025.In line with these developments, conventional banks are currently starting to spin off Sharia Business Units in accordance with the provisions of POJK Number 12 of 2023.The banks under our coverage booked mixed performances. BRIS, which booked loan growth (+23.97% YoY), ROE (+40 bps), and net profit (+10.21% YoY) in 6M25. BBCA also booked loan growth (+12.9% YoY), ROE (+40 bps), and net profit (+8.0% YoY) in 6M25. Meanwhile, BBRI, BMRI, and BBNI booked 6M25 performance below our expectations.With the various catalysts above, as well as the performance of each bank in the banking sector, we make our top picks BRIS with a potential fair value of Rp3,580 and BBCA with a potential fair value of Rp11,400.By PHINTRACO SEKURITAS | Research - Disclaimer On -

Volume recovery remains relatively fragile despite the monthly improvement. National cement sales in Jul-25 stood at 5.8 million tons (+18.4% MoM; -3.8% YoY), bringing cumulative 7M25 volumes to 32.9 million tons (-3.2% YoY) or 51.5% of our FY25E. Bulk cement was the main driver in July with sales of 1.70 million tons (+21.7% MoM; -10.8% YoY), while bagged cement recorded 4.09 million tons (+17.1% MoM; -0.5% YoY). Cumulatively, bagged cement sales remained stable at 13.56 million tons as of 7M25, whereas bulk cement contracted by 10.2% YoY to 7.60 million tons, mainly affected by the delayed execution of IKN project developments. From a regional perspective, all areas posted a rebound in July (Table 1), although cumulatively, Jakarta (1.16m tons, -17.2% YoY), Kalimantan (2.45m tons, -18.8% YoY), and Yogyakarta (519k tons, -10.4% YoY) still booked contractions.Both major players successfully increased market share in Jul-25. INTP recorded cement sales of 1.69 million tons (+20.5% MoM; +17.1% YoY), with market share rising to 29.2% (vs. 28.7% in Jun-25), bringing cumulative 7M25 sales to 8.0 million tons (-2.8% YoY). SMGR booked cement sales of 2.80 million tons (+20.8% MoM; -16.9% YoY), bringing cumulative 7M25 volumes to 12.93 million tons (-7.7% YoY), with July market share improving to 48.25% (vs. 47.32% in Jun-25). On a monthly basis, INTP and SMGR expanded their market shares by +50bps and +93bps, respectively. However, cumulatively, SMGR’s sales performance contracted more significantly, while INTP demonstrated relative resilience, with declines of -7.7% YoY vs. -2.8% YoY, respectively.The rebound in Jul-25 provides an early indication of improving demand, in line with the seasonal trend in the second half of the year. As highlighted in our previous report, we expect sector performance to improve in 3Q25–4Q25, supported by the historical trend over the past four years where sales contribution during these quarters remained stable at around 27–28% of full-year volumes. Additional factors such as fewer national holidays in 2H25 and higher government spending in the second half are expected to act as catalysts. Moreover, we continue to monitor the realization of government programs that are projected to support cement demand going forward.We maintain our Neutral rating on the cement sector, given the still fragile volume recovery despite sequential improvement. The bagged segment remains stagnant amid weak consumer purchasing power, while the bulk segment continues to contract, leading to a cumulative national volume decline of -3.2% YoY as of 7M25. At the company level, we downgrade INTP from BUY to HOLD with a target price of Rp6,500, as the target has already been achieved, implying EV/EBITDA valuations of 5.33x (FY25E) and 4.70x (FY26F). Upside risks include: (1) faster and larger-than-expected government spending, (2) stronger-than-expected recovery in bulk demand, and (3) stabilization of energy prices supporting profitability.By PHINTRACO SEKURITAS | Research - Disclaimer On -Contact Us : WA: 08119560188 IG: @phintracosekuritasofficial YT: Phintraco Sekuritas Official TELE: @phintasprofits www.phintracosekuritas.com www.profits.co.id

Both plantation names under our coverage delivered solid performance in 1Q25, with AALI posted robust revenue growth of 46.3% YoY, supported by higher sales volumes of CPO and palm kernel and SSMS also reporting a 14.42% YoY increase in net profit to IDR276.90 billion, supported by efficient cost control and young plantation profile.Indonesia's CPO production rebounded in March 2025 to 4.81 million tons (+16.05% MoM), though 1Q25 output was still down –1.82% YoY, reflecting the lagging impact of El Niño. Domestic demand remained firm at 6.05 million tons for 3M25 (+6.0% YoY), backed by strong biodiesel uptake (+8.5% YoY). Exports also rose (+12.4% YoY), supported by stronger refined product volumes and a weaker rupiah.We forecast CPO prices to hover around RM4,100–4,500/ton in 2H25F, driven by tight supply in Malaysia and continued domestic absorption in Indonesia. Demand from India is expected to strengthen amid restocking trends and lower import duties, while CPO’s pricing discount to soybean oil continues to support its global competitiveness.We maintain our Overweight rating on the plantation sector, favoring names with strong production visibility, younger estates, and efficient cost structures. Key downside risks include CPO price volatility and unfavorable policy shifts that may impact margins.By PHINTRACO SEKURITAS | Research -Disclaimer On-

Public consumption remained solid in May 2025. Inflation in Indonesia stood at 1.60% YoY in May 2025. Over the past year, the average inflation in Indonesia has been 1.56%, so while inflation in May 2025 decreased compared to April 2025, the inflation in May 2025 is still relatively stable.The government gave various economic stimulus packages in June-July 2025. We assess that the stimulus package given by the government has the potential to maintain public purchasing power.Average raw material prices tend to mix. The average wheat prices decreased by 9.9% YoY to US$549/Bu in 5M25, the average price of Crude Palm Oil (CPO) increased by 4.8% YoY to MYR4,210/ton in 5M25, the average price of cocoa increased by 18.5% YoY to US$9,302/ton in 5M25 and the average price of coffee increased significantly by 83.22% YoY to US$373/lb in 5M25.Corn and Soybean Meal (SBM) prices softened in 5M25. The average domestic corn price decreased by 23.18% YoY to Rp6,274/kg in 5M25. Meanwhile, the average price of SBM decreased by 13.47% YoY to US$301/ton in 5M25.The revenue performance of consumer issuers in our coverage showed a positive trend. In 1Q25, all consumer issuers in our coverage continued this positive revenue performance trend. This condition indicates that the consumer sector still has attractive prospects in the long term.Overweight rating on the Consumer Sector. With the various catalysts above, we give an Overweight rating to the consumer sector. Our top picks in the consumer sector are INDF, with an estimated fair value of IDR 9,000; ICBP, with an estimated fair value of IDR 13,275; and CPIN, with an estimated fair value of IDR 5,400.

BI rate has the potential to be cut by 25 bps - 50 bps in the remainder of 2025. Given Indonesia's relatively solid macroeconomic conditions, where the inflation rate is in line with BI's assumptions (2.5%+-1% or 1.5% -3.5%) in 2025.Residential property sales grew 0.73% YoY or 33.92% QoQ in 1Q25 vs. -15.09% YoY in 4Q24. The growth of small-type houses drove this increase, small-type houses grew 21.75% YoY in 1Q25. Therefore, property issuers whose portfolios mostly consist of small-type houses, such as CTRA, booked more resilient performance.Several stimuli from the Government. The Government will continue Value Added Tax (VAT) incentive program until the end of 2025.Several stimuli from the Government. The Government will continue Value Added Tax (VAT) incentive program until the end of 2025.The majority of property issuers booked marketing sales growth in line with the FY25F target.Mortgage Growth is Still Overshadowed by Worsening Asset Quality. Annually, total KPR grew by 9.13% YoY in 3M25, lower than the 9.67% YoY growth in FY24. While quarterly, total KPR grew by 2.54% QoQ, higher than the 2.0% QoQ in 3M25.With the various catalysts above, as well as the performance of each issuer in the property sector, we make our top picks CTRA with a potential fair value of Rp1,320 > BSDE Bwith a potential fair value of Rp1,185 > PWON with a potential fair value of Rp535.By PHINTRACO SEKURITAS | Research - Disclaimer On -

Public consumption tends to improve in April 2025. Inflation in Indonesia was at 1.95% YoY in April 2025, higher than the previous realization of 1.03% YoY in March 2025. This condition indicates that the public purchasing power tends to improve in April 2025.Technological advances drive the digital transformation of retailers. From the company's side, the digital transformation carried out has the potential to reach more consumers, especially in various regions that do not have physical outlets. We assess that this condition has the potential to positively impact the company's performance in the long term.Retailer store expansion still continues. This condition indicates that the retail sector still has great potential in the long term. The expansion has the potential to reach more consumers, which will positively impact the company's growth in the long term.The revenue of retailers in our coverage tends to be solid. Until 1Q25, the revenue performance of retail issuers was relatively increased compared to 1Q24, except for ERAA, which booked a revenue decrease of 4.6% YoY to IDR15.88 trillion in 1Q25.Neutral rating on the Retailers Sector. With various catalysts, such as continued pressure on the lower middle class and mixed performance of retailers issuers in 1Q25, we give a Neutral rating on the retailers sector. Retailers issuers in our coverage are ERAA, with an estimated fair value of IDR555; AMRT, with an estimated fair value of IDR2,570; MIDI, with an estimated fair value of IDR428; and ACES, with an estimated fair value of IDR685.

National cement sales volume in 1Q25 reached 13.16 million tons (-7.8% YoY ; -25.9% QoQ), missing both our forecast (20.6%) and the five-year average (23.1%). The weak performance was mainly driven by prolonged rainy weather and fewer effective working days caused by clustered public holidays and the Ramadan–Eid period shifting into the first quarter, which dampened construction activity.Bulk cement experienced the steepest decline, with volume falling to 3.72 million tons (-15.3% YoY; -31.5% QoQ). Demand weakened broadly across regions, with Java down -4.1% YoY and non-Java areas contracting sharply by -30.4% YoY. Kalimantan was the hardest hit, posting a -36.9% YoY decline (-19.2% QoQ), largely due to delays in the Nusantara Capital City (IKN) project.Meanwhile, bagged cement sales volume reached 9.44 million tons (-4.4% YoY ; -23.4% QoQ). The decline was more pronounced in Java (-8.0% YoY), while non-Java regions showed more resilience with only a -1.2% YoY drop. At the company level, SMGR’s volume decreased to 8.57 million tons (-6.6% YoY; -16.6% QoQ), whereas INTP demonstrated relatively stronger performance at 3.96 million tons (-6.0% YoY; -24.4% QoQ).Despite market headwinds, Indocement strengthened its market share to 30.7% in 3M25 (vs 29.5% in 2M25). Conversely, SMGR’s share slipped to 46.0% in 3M25 (vs 48.0% in 2M25), reflecting its sales volume contraction and a weakening bagged cement segment contribution (69.4% in 3M25 from 72.0% in 2M25), pressured by softer retail demand. Indocement also faced challenges, with volume down -5.9% YoY, driven by declines in both bagged (-3.2%) and bulk cement (-12.1%).We expect cement demand to recover as the low season ends and drier weather returns historically supporting increased construction activity. Accordingly, we anticipate stronger results in Q2 and Q3. However, government budget cuts constrain upside potential, with volume growth forecast at a modest 0.5%–1% for FY25F (Indust : 1%–2% in FY25F). Bulk cement’s contribution is projected to contract to ~28% in FY25F (vs 30.7% in FY24).We assign a Neutral rating to the cement sector given the headwinds from budget reductions and stagnant bagged cement demand, combined with a declining bulk cement contribution and lack of overall volume recovery momentum. However, we give a BUY recommendation on INTP with a target price of IDR 6,500, supported by an attractive EV/EBITDA valuation of 5.33x/4.70x for FY25E/FY26F. Downside Risks: 1) Larger or prolonged government infrastructure budget cuts, 2) Volatility in raw material and energy prices, 3) Intensified price competition affecting margins and market share.By PHINTRACO SEKURITAS | Research Disclaimer OnContact Us: WA: 08119560188 IG: @phintracosekuritasofficial YT: Phintraco Sekuritas Official TELE: @phintasofficial www.phintracosekuritas.com www.profits.co.id

All telecom issuers under our coverage faced pressure in 1Q25. ISAT booked revenue of IDR13.58 trillion (-3.53% QoQ), dragged by a 2.94% QoQ contraction in data revenue. Despite a slight ARPU increase (+0.77% QoQ), ISAT’s subscriber base declined 3.93% YoY and data consumption dropped 4.78% QoQ. EXCL posted the steepest topline drop, down 4.75% QoQ to IDR8.60 trillion, with data and digital services revenue falling 3.83% QoQ. TLKM also saw a 2.94% QoQ revenue dip to IDR36.64 trillion, mainly from the Data, Internet & IT Services segment (-2.44% QoQ).Operationally, EXCL grew its subscriber base by 2.08% YoY and saw a 4.55% QoQ increase in data traffic, but ARPU slipped 2.44% QoQ. TLKM's data consumption rose 5.36% QoQ, yet blended ARPU declined 3.64% QoQ. Meanwhile, ISAT suffered both consumption and user base contraction, reflecting weaker engagement.EBITDA margins remained resilient. ISAT's margin improved to 47.25% (+196 bps QoQ), driven by leaner employee and marketing costs. TLKM also recorded margin growth to 49.76% (+101 bps QoQ), while EXCL held relatively steady at 50.24%. On the bottom line, ISAT posted a 26.96% QoQ net profit increase to IDR1.31 trillion. TLKM's net profit slipped 2.75% QoQ to IDR5.81 trillion amid rising opex, and EXCL saw the sharpest decline (-23.44% QoQ) to IDR385 billion due to cost pressures.Looking into 2Q25F, the operators' agreement to raise starter-pack prices may aid ARPU and data yield recovery. However, risks remain, particularly user attrition among price-sensitive segments. Current data yield averages IDR8.2k/GB, with XL leading at IDR2.77k/GB, slightly above TSEL (IDR2.71k) and ISAT (IDR2.69k). XL also posted the highest data revenue per subscriber at IDR134.13k (vs ISAT: IDR110.71k; TSEL: IDR98.72k). We expect yields to improve by 3–5% in 2Q25F, potentially lifting industry ARPU and revenue per user to IDR353.87k–IDR360.74k/sub.A key catalyst lies in the upcoming 1.4 GHz spectrum auction. With 80 MHz available and its use targeted for wireless broadband, we view TLKM as the frontrunner given its infrastructure readiness and strong financials (1Q25 DER: 0.77x; FY25F interest coverage: 7.97x). This spectrum may help Telkom restore IndiHome’s competitive edge, which currently ranks 5th in service quality per OpenSignal, trailing peers like XLHOME (#1) and Indosat HI-FI (#2).We maintain an Overweight rating on the telco sector. Our top pick is ISAT (BUY, TP: IDR2,200), underpinned by cost efficiencies and strong market presence. OpenSignal highlights Tri as the most consistent performer in user experience. TLKM (BUY, TP: IDR2,950) follows, offering attractive valuation (~22% EV/EBITDA discount vs 5Y avg), potential buyback, dividend payout, and fixed broadband upside. EXCL (BUY, TP: IDR2,900) remains our third choice as it prepares for post-merger synergies with FREN, targeting USD100mn realization this year from a total of USD200–300mn. Downside Risks: 1) Persistent price wars may cap ARPU and compress margins. 2) Macro uncertainty and FX volatility could raise operational costs, especially for firms with foreign currency debt. 3) Auction delays or regulatory setbacks could stall expansion plans.By PHINTRACO SEKURITAS | Research – Disclaimer On –WA: 08119560188 IG: @phintracosekuritasofficial YT: Phintraco Sekuritas Official TELE: @phintasofficial www.phintracosekuritas.com www.profits.co.id

TBIG reported a modest 1.63% QoQ revenue increase in 4Q24 to IDR 1.74 trillion, buoyed by fiber (+4.00% QoQ) and tower leasing (+1.42% QoQ). Meanwhile, MTEL’s 1Q25 revenue contracted by 9.15% QoQ to IDR 2.26 trillion, reflecting pressures in both tower leasing and fiber segments. TOWR’s revenue stayed largely flat (-0.25% QoQ) in 4Q24 amid cautious tenant additions.Operational performance highlights MTEL’s tenant base expanding 4.24% YoY and tower count growing 3.82% YoY, maintaining a steady tenancy ratio at 1.52x. TBIG’s tenancy ratio edged down to 1.79x on moderate tenant growth, while TOWR’s ratio slipped to 1.64x despite strong tenant (+6.91% YoY) and fiber asset (+19.34% YoY) additions.TBIG’s EBITDA margin dipped to 84.22%, MTEL held firm around 83%, and TOWR’s margin narrowed to 83.80%. Net profits declined for TBIG (-12.73% YoY) and MTEL (-7.93% QoQ), but TOWR bucked the trend with a 7.25% YoY net profit rise.Merger risks loom large with an estimated 14,000–20,000 overlapping sites from the EXCL-FREN consolidation, disproportionately impacting TOWR and TBIG due to their greater revenue exposure (~30% and ~18%, respectively) compared to MTEL (~12%). MTEL’s diversified portfolio—with over half its towers outside Java—affords greater resilience and flexibility to mitigate site rationalization risks.Fiber growth shines as a beacon of opportunity, with FY24 segment revenue up 16.2% YoY and a forecasted CAGR of 11.78% through 2029. MTEL’s robust balance sheet positions it well for continued fiber expansion, while TOWR aims to capitalize on its extensive 212,000 km fiber network despite capex challenges.We maintain a Neutral rating on the tower sector. Our top pick remains MTEL (HOLD, TP: 700) for its resilience and balanced portfolio. TOWR (HOLD, TP: 650) follows, leveraging its fiber assets to offset tower segment pressures. TBIG (HOLD, TP: 2200) faces downside risks from consolidation but could stabilize by optimizing non-tower segments.By PHINTRACO SEKURITAS | Research – Disclaimer On –Contact Us: WA: 08119560188 IG: @phintracosekuritasofficial YT: Phintraco Sekuritas Official TELE: @phintasofficial www.phintracosekuritas.com www.profits.co.id