The Fate of Indonesian Automotive Issuers Amidst the War: Who Is Still Speeding Ahead?

The 2025 annual financial reporting season serves as a crucial moment to assess the resilience of automotive and supporting component issuers on the Indonesia Stock Exchange. The performance of this sector is heavily influenced by dynamic macroeconomic conditions, where escalating global geopolitical conflicts exert pressure on the manufacturing industry. Disruptions to international supply chains, particularly concerns over the smooth operation of strategic shipping routes due to geopolitical tensions, trigger volatility in crude oil and industrial metal commodity prices. These conditions directly inflate the structure of production costs. At the same time, global uncertainty also impacts the weakening of domestic purchasing power, forcing issuers to implement strict efficiency strategies. Interestingly, amidst these challenges, issuers focused on the replacement parts market are showing high levels of resilience. Positive Net Profit Achievements of Automotive Issuers The first group consists of five issuers that have defied the weakening trend by recording annual net profit growth. PT Garuda Metalindo Tbk (BOLT) leads in percentage terms with a 19.5% surge in net profit to Rp 142.4 billion. The next positions are held by PT Indospring Tbk (INDS) with 10.9% growth and PT Selamat Sempurna Tbk (SMSM) with an 9.8% increase. Operational resilience is also demonstrated by component producers under the Astra group, namely PT Astra Otoparts Tbk (AUTO) with an 8.4% profit rise, and tyre producer PT Gajah Tunggal Tbk (GJTL) with stable growth at 4.7%. Ratios and Valuations of Positive Profit Issuers From a fundamental valuation perspective, the market provides varied appreciation to profit-making issuers. SMSM stands out with the most impressive return on equity (ROE) at 26.11% and the highest net profit margin at 21.1%, resulting in its shares trading at a premium valuation with a Price to Book Value (PBV) of 2.49x. On the other hand, GJTL and AUTO offer very cheap valuations compared to their solid performance. GJTL is currently traded at a Price to Earnings Ratio (PER) of just 3.35x, while AUTO is at a PER of 5.70x with a very conservative debt to equity ratio (DER) of 0.33x. Net Profit Contraction of Automotive Issuers The second group encompasses eight issuers experiencing net profit contraction due to operational cost pressures and weakening demand. PT Astra International Tbk (ASII), as the main proxy for the national automotive industry, recorded a moderate decline of 3.3%. Deeper declines were felt by PT Mitra Pinasthika Mustika Tbk (MPMX) and PT Industri dan Perdagangan Bintraco Dharma Tbk (CARS). The harshest condition was faced by PT Indo Kordsa Tbk (BRAM), which recorded a reversal from a profit position in 2024 to a net loss of Rp 38.9 billion in 2025. PT Harapan Duta Pertiwi Tbk (HOPE) also remains in negative territory. Ratios and Valuations of Pressured Profit Issuers This performance decline directly impacts valuation indicators. Despite the profit decline, ASII maintains a solid fundamental position with an ROE of 11.27% and trades at a discount with a PBV of 0.81x. PT Multi Prima Sejahtera Tbk (LPIN) also shows balance sheet stability with a near-zero DER of 0.07x. In a different camp, debt structure becomes the main risk factor for PT Indomobil Sukses Internasional Tbk (IMAS), which has a high DER of 3.89x. A similar situation is seen in HOPE with a DER of 1.97x, making its financial posture vulnerable amid a still tight interest rate environment. BRAM records a negative PER ratio due to its loss position this year.