Fitch Assigned BBB Rating to Indonesia’s Global Bonds

MACROECONOMY 
Fitch Assigned BBB Rating to Indonesia’s Global Bonds 
Fitch Ratings assigned a BBB credit rating to Indonesia’s global bonds, a level at the lowest tier of investment grade that indicates moderate default risk and suggests the bonds remain attractive to global institutional investors. The rating reflects expectations that Indonesia will sustain its macroeconomic fundamentals, but Fitch noted the importance of maintaining strong public finances and fiscal flexibility, including improvements in government revenue and tax compliance, to uphold the rating level going forward. (Bloomberg Technoz) 

COMPANY 
BCAS: BBRI IJ - FY25 Earnings Below Ours, In Line with Cons 
- 4Q25 net profit rose to IDR 15.9tn (+9.5% QoQ; +6.7% YoY), bringing FY25 earnings to IDR 56.7tn (-5.5% YoY), below our numbers at 92.8%, but in line at 100.7% of consensus. 
- Net interest income reached IDR 39.5tn in 4Q25 (+4.7% QoQ; +13.5% YoY), lifting FY25 net interest income to IDR 150.5tn (+5.5% YoY). 
- Operating income stood at IDR 69.5tn in 4Q25 (+4.1% QoQ; +25.7% YoY), bringing FY25 operating income to IDR 267.1tn (+23.8% YoY) - above ours and cons estimate at 113.8% and 126.8%. 
- Operating expenses declined to IDR 35.9tn in 4Q25 (-5.0% QoQ; +35.7% YoY), while FY25 opex jumped 48.6% YoY. 
- Provisioning increased to IDR 13.4tn (+22.9% QoQ; +54.7% YoY), bringing FY25 provisions to IDR 46.1tn (+20.8% YoY). PPOP stood at IDR 33.6tn in 4Q25 (+15.9% QoQ; +16.5% YoY). 
- NIM softened to 6.5% in FY25 (FY24: 6.8%), while loan growth remained solid at +12.5% YoY to IDR 1,460.7tn. LDR rose to 92.0%, CAR stood at 21.1%, gross NPL was stable at 3.3%, and ROE came in at 16.8% (FY24: 18.4%).