As of October 28, 2025, the stocks with the highest dividend yields in the Indonesian market are Matahari Department Store Tbk (LPPF) at 17.24%, Trans Power Marine Tbk (TPMA) at 13.91%, Colorpak Indonesia Tbk (CLPI) at 11.6%, Multi Prima Sejahtera Tbk (LPIN) at 11.54%, and Sampoerna Agro Tbk (SGRO) at 11%. A combination of internal financial policies, sectoral dynamics, and market valuation factors influences the high dividend yields of these firms. Generally, a high dividend yield indicates either a company’s strong ability to generate cash and maintain consistent dividend payments or a depressed share price that inflates the yield ratio. Therefore, it is essential to assess both profitability and market conditions to understand why these firms exhibit elevated dividend yields. Matahari Department Store Tbk (LPPF) demonstrates a high dividend yield primarily due to its strong cash position and consistent profitability despite operating in a mature retail sector. As a leading department store chain in Indonesia, Matahari has stable revenue streams and relatively low capital expenditure requirements, allowing management to distribute a significant portion of earnings to shareholders. However, the persistently high yield may also reflect market skepticism about future growth prospects, as the retail industry continues to face competitive pressure from e-commerce platforms and changes in consumer behavior. Thus, LPPF’s high dividend yield represents both its financial strength and a valuation discount linked to long-term structural challenges in the retail sector. Trans Power Marine Tbk (TPMA) maintains a high dividend yield primarily because the shipping and marine logistics industry is cyclical. When global commodity demand and freight rates are high—especially in coal and bulk cargo transport—TPMA benefits from strong cash flows, enabling generous dividend distributions. The company’s dividend policy reflects a shareholder-oriented approach during upcycles in global trade, though yields can fluctuate with freight market conditions and oil prices. Meanwhile, Colorpak Indonesia Tbk (CLPI) and Multi Prima Sejahtera Tbk (LPIN) both operate in manufacturing sectors characterized by moderate growth and stable operations. Their high dividend yields suggest conservative reinvestment policies, as management prioritizes returning capital to shareholders over aggressive expansion. These companies often face limited opportunities for rapid growth, making dividend payments an attractive way to sustain investor interest. Additionally, their relatively small market capitalization and low trading liquidity can depress share prices, mechanically raising dividend yield ratios even when total payout levels remain steady. Lastly, Sampoerna Agro Tbk (SGRO), part of the Sampoerna Group, reflects the profitability of Indonesia’s palm oil sector during periods of elevated crude palm oil (CPO) prices. High commodity prices have significantly strengthened the company’s earnings and free cash flow, allowing for a higher dividend payout ratio. Plantation companies often increase dividends during commodity price peaks to distribute surplus earnings and enhance shareholder returns. In conclusion, the high dividend yields of these firms arise from a combination of robust profitability, limited reinvestment needs, cyclical or sector-specific conditions, and, in some cases, market undervaluation. While high yields can signal financial stability and efficient cash management, they may also indicate investor caution about growth prospects or sectoral headwinds. Therefore, a comprehensive interpretation of dividend yield should consider both corporate fundamentals and broader market sentiment.