Astra International Optimistic to Sustain Performance in Second Half of 2025
Key Takeaways
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JAKARTA, Investortrust.id — PT Astra International Tbk, or ASII, has expressed confidence that its performance in the second half of 2025 can remain in line with the company’s results in the first six months of the year. The diversified conglomerate also announced a review of its business portfolio and plans to adjust capital expenditure to navigate challenging economic conditions.
Astra reported net profit of Rp 19.48 trillion ($1.21 billion) for the first half of 2025, slightly lower than Rp 20.42 trillion in the same period last year. Revenue, however, rose from Rp 159.96 trillion to Rp 162.85 trillion ($10.1 billion).
President Director Djony Bunarto Tjondro said performance was pressured by subdued commodity prices and weaker domestic automotive demand. Astra’s car sales fell 13% year-on-year to 201,633 units, while the national car market declined 8.6% to 374,741 units.
“We expect Astra’s performance for the rest of 2025 to be on par with the first half. We remain optimistic about our diversified portfolio,” Djony told investors during a virtual public expose on Wednesday, Aug. 27, 2025.
President Director Astra International Djony Bunarto Tjondro speaks during a virtual public expose, Wednesday, Aug. 27, 2025. Photo: Investortrust/Primus Dorimulu
Strategic Review and Shareholder Focus
Djony confirmed that Astra has begun a strategic review of all its businesses. While the process will take time due to the group’s complexity, the objective is to generate sustainable returns for shareholders.
“One of our key focuses is to deliver consistent and attractive returns by assessing our commercial, operational, and strategic position across the portfolio,” he said.
Capex Adjustment and Investments
Vice President Director Rudy said Astra planned to adjust its Rp 26 trillion ($1.62 billion) capital expenditure budget for 2025 in response to softer business conditions. By midyear, realized capex stood at Rp 8.8 trillion, with spending mainly allocated to heavy equipment purchases in the mining contracting business.
Funds were also used for replanting and maintenance in plantation subsidiary PT Astra Agro Lestari Tbk, or AALI, and for production machinery at PT Astra Otoparts Tbk, or AUTO. Additional capex supported showroom expansion and land acquisition for Astra’s automotive business.
Beyond capex, Astra invested Rp 3.3 trillion in the first half of 2025, focusing on modern logistics warehouses and healthcare. Rudy noted that several projects remain in the pipeline and will be disclosed once they reach maturity.
Acquisitions Strengthen Portfolio
Astra has also pursued acquisitions to reinforce its portfolio in energy, property, and digital. In June 2025, mining subsidiary PT United Tractors Tbk, or UNTR, acquired 30.6% of PT Supreme Energy Sriwijaya for $30.8 million (Rp 501 billion). The deal raised UNTR’s effective ownership in the Rantau Dedap geothermal project in South Sumatra to 40.4%.
The following month, property arm PT Saka Industrial Arjaya acquired 83.7% of PT Mega Manunggal Property Tbk, or MMLP, becoming its new controlling shareholder. The move aligns with Astra’s strategy to capture growing demand for industrial and logistics infrastructure.
Earlier, in April 2025, Astra Digital Mobil, or ADMO, welcomed a $120 million (Rp 2 trillion) investment from Toyota Motor Asia Singapore for a 40% stake. Astra retains control with 60%. The partnership aims to modernize Indonesia’s used car market through OLXmobbi, integrating financing, insurance, and after-sales services.
Valuation and Market Outlook
MNC Sekuritas maintained its “buy” recommendation on ASII with a target price of Rp 6,300 per share, citing the company’s solid balance sheet, strong brand, and diversified portfolio. Astra shares were recently trading at 6.9 times earnings, one standard deviation below the five-year average, making valuations attractive for investors.
Foreign investors purchased Rp 1.65 trillion worth of ASII shares in the past month, adding momentum to the stock.
Still, analysts warned of persistent headwinds from weak consumer purchasing power, potential job cuts that could dampen automotive demand, and the risk of higher vehicle prices from new tax policies. Lower coal prices could also weigh on Astra’s mining contractor segment.
Even so, Astra management said they remain focused on long-term growth, prudent capital allocation, and improving shareholder value. “We are optimistic that our performance can outpace some of our peers as the economy improves in 2026 with stronger middle-class purchasing power,” Djony said.
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