Astra International (ASII) charted a complex course in the first half of 2026, recording a net profit of IDR 12.5 trillion (approximately USD 800 million) for the period, following a Q2 2026 net profit of IDR 6.7 trillion (approximately USD 430 million). This Q2 figure represented a 22% year-on-year decline but a solid 14% quarter-on-quarter rebound. Despite H1 net profit trailing consensus full-year 2026 projections by reaching only 43% of the ~IDR 29 trillion target, analysts are bullish on a significant recovery in H2, anticipating core segments to propel the conglomerate toward its ambitious annual targets.

United Tractors (UNTR): Impairment Charges and Operational Pressures Drag Performance

The diversified giant’s mining and heavy equipment arm, United Tractors (UNTR), proved to be a significant drag on ASII’s consolidated earnings. UNTR posted a meager net profit of IDR 199 billion (approximately USD 13 million) in Q2 2026, representing a drastic 93% year-on-year plunge and a 51% quarter-on-quarter contraction. This led to a H1 2026 net profit of just IDR 607 billion (approximately USD 39 million), down 88% year-on-year.

The underperformance stemmed from both operational and non-operational headwinds. Operationally, the Martabe gold mine struggled to return to normal production levels, despite showing some improvement from Q1. Furthermore, reduced coal production quotas (RKAB) negatively impacted heavy equipment sales and mining contractor activities. A substantial one-off charge of approximately IDR 2.1 trillion (approximately USD 135 million) exacerbated the situation, primarily attributed to impairment costs in its geothermal sub-business and payments related to forest area utilization permits (PPKH) for its nickel sub-business. This financial anchor significantly weighed on ASII’s overall profitability.

Resilient Pillars: Automotive and Financial Services Drive Strong Growth

In contrast to UNTR’s struggles, ASII’s automotive and financial services segments demonstrated remarkable resilience, acting as vital shock absorbers for the conglomerate’s portfolio.

Automotive Sector Powers Ahead with Double-Digit Growth

The automotive segment roared ahead, recording a net profit of IDR 3.5 trillion (approximately USD 225 million) in Q2 2026, marking a robust 13% year-on-year and 50% quarter-on-quarter surge. This propelled H1 2026 net profit to IDR 5.9 trillion (approximately USD 378 million), a solid 9% year-on-year increase. This impressive growth was largely fueled by a 13% year-on-year jump in net profit contributions from associate entities and joint ventures, reaching IDR 4.7 trillion (approximately USD 300 million) in H1 2026, with PT Astra Daihatsu Motor leading the charge.

Financial Services Maintain Strong Momentum

Astra’s financial services segment also delivered a robust performance, posting a net profit of IDR 2.4 trillion (approximately USD 155 million) in Q2 2026, up 7% year-on-year and 5% quarter-on-quarter. The H1 2026 net profit reached IDR 4.6 trillion (approximately USD 295 million), a healthy 6% year-on-year increase. This consistent growth was primarily driven by strong new financing volumes, which expanded by 10% year-on-year as of June 2026.

‘Others’ Segment: CPO and Property Provide Unexpected Boost

Beginning in Q2 2026, ASII streamlined its reporting by consolidating various non-core businesses into an ‘Others’ segment, encompassing ventures outside of mining/heavy equipment, automotive, and financial services. This segment emerged as a quiet powerhouse, recording a significant 81% year-on-year increase in net profit to IDR 1.4 trillion (approximately USD 90 million) for H1 2026.

This remarkable surge was attributed to two key drivers:

• CPO Business: Higher selling prices and increased sales volumes injected substantial profitability into Astra’s crude palm oil operations.
• Property Segment: Enhanced performance in the property sector, including contributions from newly acquired warehouses, bolstered the segment’s overall earnings.

Outlook: Poised for a Strong Second Half

Despite the challenges faced by United Tractors, Astra International’s diversified business model, underpinned by strong performances in automotive, financial services, and the ‘Others’ segment, positions it favorably for the remainder of 2026. The expectation of significant recovery in the second half suggests that ASII is well-equipped to navigate market complexities and potentially bridge the gap to consensus full-year profit projections, reinforcing its standing as a formidable player in the Indonesian market. Investors will be closely watching for the execution of recovery strategies and the continued strength of its growth drivers.