Bank Central Asia (BCA), the largest lender by market value and assets in Indonesia, is expected to benefit from Indonesia's tax amnesty program and improving economic growth of Southeast Asia's largest economy. CIMB Securities projects a 10 percent year-on-year (y/y) increase in loan growth in full-year 2016. However, this growth projection is slightly below BCA's loan growth realization one year earlier when it reached 12 percent (y/y). This slowing growth is attributed to lower demand for working capital credit and investment credit.

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One of Indonesia's leading industrial estate developers, Puradelta Lestari, could see its sales rise on the back of Indonesia's tax amnesty program and the improving domestic economy. According to CIMB Securities, the company has three strengths that will enable it to see higher sales and profit in the years ahead: (1) the strategic location of its industrial estate Kota Deltamas, (2) having the biggest land banks at its disposal, and (3) strong internal cash reserves.

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Expectation of rising fresh fruit bunches (FFB) and crude palm oil (CPO) volumes in the second half of the year should boost the corporate earnings of Astra Agro Lestari, one of Indonesia's leading agribusiness companies. Meanwhile, sentiments related to the La Nina weather phenomenon and rising CPO demand on the back of the Indonesian government's biodiesel program should support CPO prices. Astra Agro Lestari is the plantation unit of diversified conglomerate Astra International.

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The Indonesian Automotive Industry Association (Gaikindo) raised its target for Indonesia's car exports (completely built up units, or, CBU) to 220,000 vehicles in 2016. This figure implies Gaikindo targets to see a 6 percent (y/y) increase in car exports from 207,691 units last year. Gaikindo Chairman Jongkie Sugiarto said the global economy has started to stabilize and this should have a positive effect on Indonesia's car shipments.

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