JAKARTA – Analyst at PT Binaartha Sekuritas, Nafan Ali, mentioned that the prospect of retail sector in Indonesia is quite promising, supported by solid economic foundation and increased domestic consumption.

Said prospect, said Ali, could be the positive catalyst needed for issuers in the retail sector, such as PT Daya Intiguna Yasa Tbk (MDIY), or widely known under the brand MR. DIY.

“A company like MDIY, which focuses on household needs, stands at a very strategic position to leverage this profitable market dynamic,” added Ali.

Ali also mentioned that retail sector prospect is further boosted by the data shown in the consumer confidence index and retail sales index of Bank Indonesia. Both indices demonstrated consistent, positive uptrend.

“These indicators emphasise the resilience of retail sector amidst global economic challenges,” added Ali.

In response to this opportunity, Director of MDIY, Edwin Cheah, said that the company is optimistic about continuing the expansion of MDIY outlets across Indonesia, which conforms to the initial plan of IPO proceeds utilisation of IDR 4.15 trillion last December.

“This strategy is aimed to reinforce out position as the market leader in the household retail sector, as well as meeting consumers’ demands through high-quality products, yet affordable price,” Cheah explained.

This outlet expansion strategy, Cheah said, is proven effective in boosting financial performance of the company pre-IPO, as could be seen in revenue jump to IDR 3.9 trillion in 2023 from only IDR 894 billion in 2021.

Not only that, its net profit also flourished, soaring to IDR 353 billion in 2023 from minus IDR 80 billion in 2021. (KR/ZH)