Core Viewpoint - Indonesia's stock market faced significant declines, with the composite index dropping over 7%, marking the largest single-day decline since September 2011, attributed to various factors including mass layoffs, weak consumer data, and macroeconomic concerns [2][4]. Group 1: Market Performance - The Indonesian composite index has experienced a continuous decline for four trading days, reaching a new low since September 2021, and has fallen over 20% from its historical high of 7910.56 points in September 2024, entering a technical bear market [5]. - The Indonesian rupiah depreciated against the US dollar, trading at 16,419, while bond prices also fell [6][10]. Group 2: Economic Indicators - The Indonesian Central Statistics Agency reported a 2024 economic growth rate of 5.03%, slightly above the previous forecast of 5% to 5.02%, but still below the 5.2% target set by the previous government [7]. - Weak export performance has been identified as a primary reason for the economic growth falling short of expectations, compounded by consumer weakness ahead of the Ramadan holiday [7][8]. Group 3: Investor Sentiment - Concerns over potential changes in the finance ministry leadership have negatively impacted market sentiment, with rumors suggesting a possible replacement by a family member of the president [3][9]. - Significant foreign investor sell-offs have occurred, with approximately $1.65 billion in local stocks sold year-to-date, as investors shift towards safer assets amid a pessimistic outlook for the Indonesian stock market [10][11].

Investment Rating - The report maintains a positive outlook on the AI-driven data center services industry, highlighting significant growth potential due to increased demand for AI computing power and infrastructure [14][18]. Core Insights - The report emphasizes that the AI revolution is driving new infrastructure investments, with major internet cloud companies and operators actively increasing their capital expenditures [18]. - It notes that the demand for Artificial Intelligence Data Centers (AIDC) is expected to rise sharply, with a projected increase in global data center IT load from approximately 49GW in 2023 to 96GW by 2026, primarily driven by AI computing needs [14][16]. - The report identifies key players in the data center services sector, including major telecom operators and third-party service providers, as well as their strategic investments in new technologies and infrastructure [17][18]. Summary by Sections Macroeconomic Overview - The macroeconomic report indicates a recovery in domestic demand, with industrial output increasing by 5.9% year-on-year in January-February 2025, and fixed asset investment growing by 4.1% [8][9]. - The report suggests that the Chinese economy is likely to break the negative cycle of industrial deflation and service sector contraction through fiscal expansion and structural optimization [10]. Industry and Company Analysis - The telecommunications industry is highlighted for its rapid transformation towards AI-driven data center services, with significant investments from leading companies [14][16]. - The agricultural sector shows a recovery in poultry prices, with a notable increase in white chicken prices by 9.88% week-on-week [19]. - The electronics industry is recommended for investment, particularly in the Apple supply chain and IC design sectors, as they are expected to benefit from ongoing innovation and market demand [21][22]. Investment Recommendations - The report recommends focusing on major telecom operators such as China Mobile, China Telecom, and China Unicom, as well as leading third-party data center service providers like Runze Technology and Guanghua Data [18]. - In the agricultural sector, companies like Muyuan Foods and Wens Foodstuff Group are suggested for their potential in the recovering pork market [21]. - The electronics sector suggests investing in companies involved in AI applications and semiconductor technologies, such as MediaTek and NVIDIA, as they are positioned to benefit from the growing demand for AI solutions [22][24].