The banking sector is experiencing liquidity tightening in FY24. Indonesia's banking sector's loan-to-deposit ratio (LDR) increased by 474 bps YoY or 123 bps MoM to 88.57% in December 2024. All the banks under our coverage also saw increased LDR in FY24. Bank support for the three million Houses could potentially reduce bank liquidity, but additional BI’s macroprudential incentives and the DHE policy are expected to mitigate the negative impact. Asset quality improvement is expected to continue in 2025F. SPI's non-performing loan (NPL decreased by 10 bps YoY or 22 bps MoM to 2.04% in December 2024 The Macroprudential Liquidity Policy (KLM) has the potential to increase banking liquidity in 2025. Bank Indonesia (BI) will increase macroprudential liquidity policy (KLM) by 1% to 5% in April 2025, compared to the previous 4%. BI rate maintained at 5.75% amid the weakening rupiah exchange rate. This decision follows a previous rate cut in the RDG-BI in January. There is still room for a BI rate cut in 2025, considering Indonesia's relatively solid macroeconomic conditions. The depreciation of the Rupiah is still on par with its peers. Rupiah depreciated by 2.84% YoY or 1.24% YtD to IDR 16,290/USD on March 7, 2025. While, CNY depreciated by 3.63% YoY, the MRX depreciated by 10.92% YoY, and the Singapore Dollar depreciated by 4.71% YoY as of March 7, 2025. With the various catalysts mentioned above, along with the performance of each banks in the banking sector, our top picks are BRIS with a fair value potential of Rp3,580, BBCA with a fair value potential of Rp11,600, and BMRI with a fair value potential of Rp6,325. By PHINTRACO SEKURITAS | Research - Disclaimer On -

Domestic inflation stabilizes at low levels. CPI inflation in Indonesia was recorded at 2.12% YoY in August 2024, declining for the fifth consecutive month since April 2024. Inflation in the Volatile Food (VF) group fell to 3.04% YoY from 3.63% YoY in July 2024, mainly due to lower prices of shallots, broiler chicken meat, tomatoes, and eggs. We assess that the decline in commodity prices in the VF group has the potential to increase people's purchasing power, given that these commodities are commonly needed in everyday life. According to data from the Central Statistics Agency (BPS), per capita chicken meat consumption in Indonesia continues to increase, reaching 8.20 kg per year in 2023, growing 3.03% YoY from 7.96 kg in 2022.The government continues to improve the quality of Human Resources (HR) through the Makan Bergizi Gratis (MBG) program with a budget of IDR71 trillion in the 2025 Draft State Budget. We assess that the program has the potential to positively impact the poultry industry (chicken meat and egg products) to boost the company's financial performance in terms of top-line and bottom-line. The Ministry of Agriculture has taken strategic steps and collaborated with the Police Food Task Force to maintain the stability of live bird prices. We assess that the government's efforts to stabilize live bird prices can support growth in the poultry sector. The strategic steps taken by the government have the potential to provide better margins for poultry companies, especially for the live chicken and DOC segments. Prices of animal feed raw materials are softening. The domestic corn price at the farm level is at IDR5,990/kg, down 17.95% YTD from the early 2024 price of IDR7,300/kg. Meanwhile, the Soybean Meal (SBM) price is currently at US$329/ton, down 13.39% YTD from the early 2024 price of US$380/ton. The poultry companies in our coverage had positive financial performance in the first half of 2024. CPIN's net profit was recorded at IDR1.76 trillion in 6M24, up 28.3% YoY (vs IDR1.37 trillion in 6M23). Meanwhile, JPFA's net profit was recorded at Rp1.59 trillion in 6M24, up significantly by 1,314% YoY (vs Rp112 billion in 6M23). With the various catalysts above and the performance of each issuer in the poultry industry, our top picks are JPFA, with an estimated fair value of IDR1,990 and CPIN, with an estimated fair value of IDR5,850. By PHINTRACO SEKURITAS | Research - Disclaimer On - Contact Us : WA : 08119055611 IG : phintracosekuritas YT : Phintraco Sekuritas TELE : phintasofficial www.phintracosekuritas.com www.profits.co.id

Term Deposit (TD) rates of banks in coverage are relatively well maintained. Loans and third-party funds growth in Indonesia have been on an upward trend since 2023. Non-Performing Loans (NPL) fell 172 bps ytd to 2.23% in June. This achievement occurred despite several global central banks implementing tight monetary policies. Rupiah depreciation can be a risk for banking. However, along with the optimism of the Fed Funds Rate cut in September, the rupiah has appreciated again so that the rupiah only depreciated less than 1% to IDR15,520/USD on September 2. The 6M24 performance of banks in our coverage mostly reached 50% of our FY24 estimate. BI Rate has the potential to fall in The BI Rate has the potential to decrease in the fourth quarter of 2024. Indonesia's Trade Balance Surplus Maintained in the Last Three Years From 2024 until July 2024, Indonesia's Trade Balance (BOP) has always posted a surplus. In July 2024, the BOP posted a surplus of US$0.47 billion. Rupiah Exchange Rate Appreciation Has Potential to Continue Until End of 2024. Indonesian Banking Net Interest Margin Remains High Amid High Interest Rates. Return on Equity (ROE) growth in the last 5 years remains high. Banking capital adequacy in Indonesia. With the various catalysts above, as well as the performance of each issuer in the banking sector, we make our top picks BMRI with a potential fair value of IDR 8,171 > BBCA with a potential fair value of IDR 10,950 > BBRI with a potential fair value of IDR 6,165 > BBNI with a potential fair value of IDR 6,800 > BRIS with a potential fair value of IDR 2,970 > BBTN with a potential fair value of IDR 1,807. By PHINTRACO SEKURITAS | Research - Disclaimer On -  

The Consumer Price Index (CPI) inflation rate continues to decline. The CPI inflation rate in Indonesia stood at 2.13% YoY in July 2024. We estimate that the sluggish CPI inflation rate can potentially increase public consumption, which can positively correlate with issuers' financial performance in the consumer sector. The Consumer Confidence Index (CCI) is maintained at an optimistic level. We assess that consumer confidence maintained above the 120 level indicates that Indonesia's economic conditions are still quite strong, which has the potential to keep people's purchasing power solid and support future economic growth. The Retail Sales Index (RSI) experienced an increase in June 2024. The Retail Sales Index (RSI) was recorded at 229.0 in June 2024. We expect the Retail Sales Index (RSI) to be maintained in line with several National Holidays in 2H24 (Independence Day of the Republic of Indonesia and HBKN Christmas 2024), which have the potential to increase public consumption. The flagship program of President and Vice President-elect Prabowo-Gibran, namely Makan Bergizi Gratis (MBG), has been officially included in the Draft State Budget and Expenditure (RAPBN) for Fiscal Year 2025 with a budget allocation of Rp71 trillion or equivalent to 0.29% of Gross Domestic Product (GDP). The program has the potential to positively impact several sectors, one of which is the consumer sector (for processed foods such as spices and their supporters), so it can boost the company's financial performance. Prices of key raw materials flatten. During the first semester of 2024, the average price of Wheat was around US$596/Bu, a significant decline of 13.6% YoY. meanwhile, the average CPO price was around MYR4,014/ton, an increase of around 3% YoY. We assess that if both commodity prices tend to stabilize in the future, it will potentially increase the profitability of consumer sector issuers. Consumer sector issuers in our coverage still recorded sales growth in the first half of 2024. MYOR recorded sales growth of 9.48% YoY to IDR16.2 trillion, ICBP recorded sales growth of 7.20% YoY to Rp36.9 trillion, and INDF recorded sales growth of 2.16% YoY to IDR57.29 trillion. We recommend Overweight in the consumer sector with various catalysts above. Our top picks are MYOR, with estimated fair value of IDR2,950 > ICBP, with estimated fair value of IDR12,504 > and INDF, with estimated fair value of IDR7,842. By PHINTRACO SEKURITAS | Research - Disclaimer On -

Home Ownership Backlog in Indonesia, Ownership of livable houses in Indonesia is still relatively small. The ratio of habitable home ownership in Indonesia has only experienced limited growth over the last five years. Restoring the quality of economic growth after the pandemic, Indonesia continues to show growth in its macroeconomic conditions. Indonesia's GDP has continued to increase in the last three years. Marketing Sales Growth Trend, The development of infrastructure and government support to encourage stability and economic growth in Indonesia have increased marketing sales of property company yearly. Stable Land Bank, The majority of property company have succeeded in maintaining the Land Bank optimally. This can be seen from the stable number of land banks in the last 5 years. After the election is over, property sales have the potential to increase. Apart from that, based on PUPR ministry data, the ratio of livable house ownership in Indonesia will only be 57.31% in 2023. Property Vs. Interest Rates. During the high interest rates in 2023, Home Ownership Credit (KPR) financing will still record growth, although limited. VAT incentives. The Government will continue the VAT incentives program until 2024. This program is an incentive provided by the Government, which will cover 100% VAT on house purchases from November 2023 to June 2024 and house purchases from July–December 2024, covered by 50%. The trend of increasing property prices and recurring income. The Residential Property Price Index (IHPR) released by Bank Indonesia in 1Q24 increased to 108.76, growing 1.89% yoy. Most property company are still recording marketing sales growth, which aligns with each company's FY24F targets. With the various catalysts above, as well as the performance of each issuer in the property sector, we make our top picks BSDE, with a potential fair value of IDR 1300, CTRA, with a potential fair value of IDR 1390 , and SMRA, with a potential fair value of IDR 705 . By PHINTRACO SEKURITAS | Research - Disclaimer On -

Interest rate hikes by the Fed and Bank Indonesia since 2022 increased interest costs for tower companies, expecting a rate cut in September 2024 that could reduce the company's interest expenses. TOWR benefits more than MTEL as its interest-bearing debt/total liabilities ratio is lower, so the expected rate cut this year could boost its profit margins. Indonesia's Digital Transformation 2030 aims to become the world's fifth-largest economy. Its focus is on developing and expanding digital infrastructure, particularly in remote areas. Telecommunications companies are expanding into Eastern Indonesia with great potential and low penetration, with government support in constructing broadband networks. We recommend overweight on the tower sector due to continued demand growth driven by government focus on infrastructure for Indonesia Emas 2045, with Top Picks TOWR (target price IDR850) and MTEL (target price IDR720), as well as upside risk from demand growth and realization of interest rate cAut. By PHINTRACO SEKURITAS | Research - Disclaimer On -

Geopolitical tensions raise the risk of cyberattacks, and the average cost per breach continues to rise, highlighting the ongoing need for robust cybersecurity measures for businesses. 51% of companies increase cybersecurity costs and investments due to the escalating cost of data breaches and cyberattacks. Indonesia faces a critical challenge in data protection; this vulnerability underscores the need for robust cybersecurity through IT Consultants & Services companies. Indonesia's tech sector receives support from the government: Law No. 27 of 2022 on Personal Data Protection and Circular Letter No. 29/SEOJK.03/2022 related to robust data security protocols for individuals and financial institutions. There is no sector rating yet, but we foresee Indonesia's tech sub-sector IT Consultant & Services' prosperous future, propelled by a potent combination of supportive regulations, surging demand for security solutions, and the transformative potential of emerging technologies.