Stock Recommendations and Prospects Amid PPN DTP Extension

Amid the extension of the PPN DTP program to 2026, the Indonesian government has introduced a project to allocate Rp 57.5 trillion for the construction of 3 million houses. This initiative aims not only to stimulate the demand for housing but also to enhance supply, positively affecting leading properties, construction, and cement companies. PT PP Tbk (PTPP), one such company, is actively involved in this program through its collaboration with Qatar to build one million houses for lower-income residents. This collaboration involves the use of PTPP land in the Jabodetabek area, West Java, and other regions. The extension program will boost citizens’ purchasing power and support residential sales. PT Summarecon Agung Tbk (SMRA) and PT Ciputra Development Tbk (CTRA) are anticipated to have positive market effects and have already planned a number of construction and renovation-related activities. This policy could trigger a rise in company stock prices in the sector, such as SMRA and CTRA, which are still undervalued. The central bank’s decision to lower interest rates will also play a role in stimulating attractive investment conditions. The rate reduction, expected to continue into 2026, will become a catalyst for the Southeast Asian real estate and construction industry.