Indonesian Market Gains as ADMG Makes Strategic Business Decision

Market Overview

The Indonesian Composite Index (IHSG) closed higher by 0.53% to 8,406.58 on November 19, 2025. The positive movement was primarily driven by major stocks including BBCA (+0.89%), AMMN (+2.78%), and BMRI (+1.25%). Conversely, TPIA (-4.00%), BRPT (-2.23%), and GOTO (-1.64%) were the main index drags.

Sector Performance

Out of 11 sectors, 8 closed in positive territory led by the energy sector (+1.54%). The technology sector was the sole decliner, falling 0.91%. Foreign investors maintained a positive sentiment with a net buy of Rp 812.92 billion in the regular market, bringing the total net buy across all markets to Rp 1.67 trillion.

Corporate Updates

Polychem Indonesia (ADMG) Strategic Restructuring

ADMG has officially ceased operations of its polyester division following consecutive losses from 2020 to 2024. This decision, effective immediately, doesn't require shareholder approval as it doesn't impact the company's overall business continuity. As of 9M25, the polyester division's assets stood at USD 50.53 million. Post-restructuring, ADMG will focus on selling ethylene glycol and other petrochemical products.

Mandatory Tender Offer for Mulia Boga Raya (KEJU)

Bel S.A, a French cheese company, has announced a mandatory tender offer for 229.85 million shares of Mulia Boga Raya (KEJU) at Rp 614 per share. The offer period runs from November 14 to December 13, 2025. Currently, Bel controls 22.50% of KEJU through its subsidiaries Pelican Company Ltd and Ostrich Company Ltd.

Investment Recommendations

Several stocks were recommended for trading: JPFA (Buy: 2420-2450), RMKE (Buy: 2990-3010), STAA (Buy: 1495-1510), AMRT (Buy: 1870-1880), and SMGR (Buy: 2670-2700). These recommendations come with specific target prices and stop-loss levels.

Market Outlook

The positive closing was supported by strong foreign investor appetite, indicating confidence in Indonesia's market. The strategic decision by ADMG to halt its polyester division reflects broader industry challenges while demonstrating proactive corporate management.