TGIF Monthly Wrap: September 2025
- ICMSS
- 31 minutes ago
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PANI Plans Rp16.1 Trillion Rights Issue for CBDK Shares, JCI Declines Over Uncertainty of Finance Minister Dismissal, Fed Lowers Rates by 25bps on Weaker Job Outlook, Merdeka's EMAS IPO Listing Surges 25% on First Day
By Fayza Nawra Avanitanya, Muthia Noor Safitri, Kenzie Aryasatya, Imam Fakhri Prayogo Harianto
September 3, 2025 at 16:30 GMT+7
PIK Avenue Building | Source: Agungsedayu web
Pantai Indah Kapuk Dua Tbk. (PANI) announced plans to raise Rp16.1 trillion through a rights issue of approximately 1.21 billion new shares, primarily to increase its ownership in CBDK from 45.9% to 90%. The transaction values CBDK at Rp36.6 trillion and is expected to boost PANI’s net asset value by about 23%, strengthening its control and strategic positioning.
The rights issue, priced at a minimum of Rp13,800 per share, awaits approval at an extraordinary shareholders’ meeting. Proceeds will not only secure the acquisition but also fund investments across PANI’s subsidiaries, supporting diversification and long-term market competitiveness.
Menkeu Purbaya Yudhi Sadewa (left) with Sri Mulyani, Tuesday (9/9), Jakarta, Indonesia | Source: Ministry of Finance Documentation
The Jakarta Composite Index (JCI) declined as much as 1.6% following the cabinet reshuffle after the Finance Minister Sri Mulyani Indrawati replacement, triggering investor concerns over fiscal stability. Banking and blue-chip stocks led declines, while the rupiah weakened nearly 1% against the dollar amid heightened risk aversion.
Sri Mulyani is known for her strict fiscal management and her successor, Purbaya Yudhi Sadewa, signaled a more growth-driven stance, raising questions about potential budget loosening. Foreign outflows intensified as global investors reassessed Indonesia’s fiscal credibility, underscoring the need for clear policy direction to stabilize markets.
Stock Photo Fed | Source: Getty Images
The Federal Reserve lowered its benchmark interest rate by 25bps to 4.00%–4.25%, citing rising concerns over a weakening labor market. Slowing job growth, higher unemployment, and easing wage pressures signaled softer labor demand, prompting policymakers to act despite inflation remaining above target.
Chair Jerome Powell described the move as a precautionary step, highlighting that preserving employment has become the central priority. While Governor Adriana Miran opposed a deeper cut, the Fed signaled readiness for further easing if labor conditions deteriorate. Markets now anticipate a more accommodative stance should job weakness persist into 2026.
Indonesia's Central Bank Governor Perry Warjiyo arrives for a press conference along with his deputies, at Bank Indonesia's headquarters in Jakarta, Indonesia | Source: REUTERS (Willy Kurniawan)
PT Merdeka Gold Resources Tbk (EMAS) surged 25% to Rp3,600 on its Indonesia Stock Exchange debut, hitting the daily trading limit after an IPO that was 4.62 times oversubscribed. The offering raised Rp4.66 trillion through the sale of 1.62 billion shares, equal to 10% of enlarged capital.
Proceeds will primarily repay Rp3.9 trillion in debt to parent PT Merdeka Copper Gold Tbk (MDKA), with about Rp658 billion allocated to mining infrastructure projects. Despite current losses, strong retail and institutional demand reflected confidence in EMAS’s long-term gold mining prospects, underpinned by significant reserves, future processing capacity, and Merdeka Group’s established track record.
US White House | Source: SpunOut
US Shutdown Raises Concerns Over Global Economic Stability
The US government shutdown has unsettled global markets, intensifying concerns over economic stability and fiscal governance. Investor sentiment weakened as uncertainty around budget negotiations triggered volatility across equities, sending mixed signals across equity markets as investors braced for extended fiscal uncertainty.
In response to the political deadlock, gold prices climbed to record highs, as investors sought safe-haven assets to hedge against rising risks. Analysts warned that continued fiscal gridlock could exacerbate volatility in currencies and bonds, amplifying global spillover effects. Market participants are now closely watching Washington’s next steps, as the standoff threatens to undermine confidence in the world’s largest economy.
Sources:
BBC
Bloomberg
CNN
Reuters
Tempo
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