US-China Resume Trade Talks Ahead of Tariff Deadline

RESEARCH REPORT
WIFI – A Gem in the Making
- More and more people are buying into the story
- Money in hand, ready for execution
- Our view? optimistic yet realistic
- Maintain BUY with new target price of IDR 4,000
(Please refer to our report here)

MACROECONOMY
US-China Resume Trade Talks Ahead of Tariff Deadline
US and Chinese officials began talks in Stockholm to extend a tariff truce expiring mid-Aug. Led by He Lifeng and Scott Bessent, discussions focus on fentanyl-related tariffs, oil imports from sanctioned nations, and export controls. While goodwill gestures emerged, including eased restrictions on chips and rare earths, key issues like overproduction and fentanyl remain. (Bloomberg Technoz)

INDUSTRY 
Danantara to Appoint SOE as Investment Holding 
Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara) has appointed an existing state-owned enterprise (SOE) as the national investment holding, set to begin operations this year. Chief Investment Officer Pandu Sjahrir confirmed the SOE’s organizational structure, including directors and commissioners, was finalized last week. The holding will play a key role in managing state assets under the new BUMN Law No. 1/2025, which establishes Danantara’s dual structure of investment and operational holdings. (Bloomberg Technoz)

COMPANY
BCAS: AKRA IJ - 2Q25 – Land Sale is Back, In-line with Ours at 48.4%

- In 2Q25, AKRA's top-line surged to IDR 11.2 tn (+8.8% QoQ, +26.3% YoY), driven by higher traffic in petroleum distribution segment that rose to IDR 8.2 tn (+4.9% QoQ, +25.9% YoY) coupled with bulk revenue from industrial estate sales at IDR 537 bn (1Q25: zero sale, +179.5% YoY), elevating 1H25 revenue to IDR 21.4 tn (+14.8% YoY, 52.4% of Ours and Cons estimates).
- Additional contribution from industrial estate segment resulted in 2Q25 robust GPM at 9.2% (+15bps QoQ, +140bps YoY) and EBIT margin at 7.0% (+36bps QoQ, +156bps YoY), driving 6M25 gross profit to IDR 1.9 tn (+23.3% YoY; 46.5% Ours, 48.2% Cons) and EBIT to IDR 1.5 tn (+28.7% YoY; 46.8% Ours, 46.1% Cons).
- AKRA's 2Q25 net income hit IDR 615 bn (+8.8% QoQ, +50.9% YoY), bringing 1H25 bottom-line to IDR 1.2 tn (+17.7% YoY) in-line with our 1H25 preview numbers at 100.4% and FY25 Ours and Cons estimates of 48.4% and 47.0%.
- Overall, 2Q25 performance recovered from 1Q25, backed by petroleum distribution improvement and land sale comeback. Nevertheless, we maintain modest outlook on 2H25 driven by soft mining activities coupled with geopolitical tension uncertainties.