Indonesia’s foreign exchange reserves (cadev) for the period of April 2021 were valued at USD 138.8 billion, or an increase compared to the March 2021 period of USD 137.1 billion. NHKSI Research sees the increase in foreign exchange reserves due to foreign capital inflows in Government Securities (SBN). Based on data from the Directorate General of Financing and Risk Management (DJPPR), foreign ownership in SBN was valued at IDR 964.6 trillion at the end of April, or an increase of IDR 13.2 trillion compared to the end of March. In addition, the increase in foreign exchange reserves was also supported by optimism for the trade balance surplus which will continue in April 2021. At the end of the week, the yield on SUN FR0087 fell to around the level of 6.40%.
Golden Energy Parent Releases USD 285 Million Notes. Golden Energy and Resources Ltd (GEAR), the holding company of Golden Energy Mines Tbk (GEMS), issued global debt securities (senior notes) worth USD 285 million. The bonds were issued with a coupon of 8.5% per annum. These senior notes will be guaranteed by Golden Investment, which is based in Australia. The bonds of the Sinarmas Group business unit have a term of five years and will mature on May 14, 2026. Previously, Golden Energy Mines, a subsidiary of GEAR, canceled the plan to increase capital with pre-emptive rights (HMETD) or rights issue, which was originally intended to comply with the minimum limit of shares outstanding (free float). (Investor Daily)
Foreign Exchange Reserves rose to USD 138.8 Billion. The position of Indonesia’s foreign exchange reserves at the end of April 2021 was recorded at USD 138.8 billion, an increase compared to the position at the end of March 2021 of USD 137.1 billion. Bank Indonesia (BI) reports that the position of foreign reserves is equivalent to financing 10.0 months of imports or 9.6 months of imports and servicing of government external debt, and is above the international adequacy standard of around three months of imports. Meanwhile, the increase in the position of foreign exchange reserves in April 2021 was mainly influenced by tax and service revenues and the withdrawal of government foreign loans. (Kontan)
Global Sentiment Dominates Trade This Week. Market participants will be watching the release of global economic data, such as: inflation rates in China and the US, UK trade balance, and US retail sales. In more detail, the US Bureau of Labor Statistics will release data on the April inflation rate and core inflation rate on May 12. Market expectations are projecting the April inflation rate to rise to 3.6%, from 2.6% the previous month. Previously, US inflation increased to 2.6% YoY in March 2021 from 1.7% YoY in February, or the highest increase since August 2018.