Government Bonds
Yesterday, the government won a total of seven series worth IDR 34 trillion, from bids totaling IDR 95.6 trillion in the results of the auction of Government Bonds (SUN). The high offer this time was supported by the downward trend in UST yields. The high liquidity is in line with the existence of SUN FR0053 worth IDR 98.5 trillion which has matured on July 15, 2021. The highest entry bids were again recorded by the benchmark candidates FR0090, FR0091, and FR0092.
Corporate Bonds
PPA Issues IDR 3 Trillion Bonds, Rating AA. Asset Management Company (Persero) is proposing the issuance of bonds up to IDR 3 trillion. The international rating agency, Fitch Ratings assigned an AA rating to the proposed PPA bond issuance. PPA is considered to be in a transformation program as part of the SOE Ministry’s program to group SOEs into several clusters based on industry. Meanwhile, PPA will be grouped in the Danareksa-PPA cluster. (Bisnis Indonesia)
Macroeconomy
Government Plans to Abolish PPnBM Motor Vehicles. The government plans to abolish the sales tax on luxury goods (PPnBM) scheme. The levy on the consumption of luxury goods will only be subject to a value added tax (VAT) of 25%. The policy clause is contained in the Draft Law (RUU) concerning the Fifth Amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP). The regulation is currently being discussed by the Ministry of Finance (Kemenkeu) together with Commission XI of the Indonesian House of Representatives. (Kontan)
Recommendations
New Issues PBS031 and PBS032 Complete Sukuk Auction. The government began to offer a new series (New Issue) to meet short-term funding needs. Based on data from DJPPR, New Issues PBS031 (3-years) and PBS032 (5-years) will begin completing the Sukuk auction on Tuesday. This new series bid, at the same time replaces PBS027 (1.8-years), PBS017 (4.2-years), and PBS004 (15.6-years) which were not offered in the same auction opportunity.
