Government Bond (SUN) prices closed mixed amid the market response to China’s economic growth data, which will grow 2.3% YoY in 2020. This is the slowest annual growth rate in decades . On the other hand, this expansion beat the projection of the International Monetary Fund which predicts China’s economy will grow by 1.9% in 2020. This has put pressure on the Asia Pacific market to European markets, because of concerns that the world economic recovery will last long. This condition has also made investors’ risk appetite decline, and they are again interested in SUN, which is considered to have minimal risk.
PNM Issues Sukuk IDR 712 Billion. Permodalan Nasional Madani (PNM) plans to issue Sukuk Mudharabah IV Year 2020 Series A worth IDR 712 billion. The sukuk issuance aims to support the company’s expansion. This sukuk has a 3-year tenor with a quarterly profit sharing payment frequency. The first profit sharing payment will be on April 19, 2021 and will be due on April 19, 2024. Then, electronic distribution will be made on January 19, 2021. (Investor Daily)
Sri Mulyani will cut IDR 58 trillion in K/L spending. Minister of Finance Sri Mulyani Indrawati will cut Ministry/Institution (K/L) spending by IDR 58 trillion for the 2021 fiscal year. One of the objectives is to finance vaccines and virus vaccinations corona. This policy follows up on the mechanism for reallocation and refocusing of K / L spending this year as stated in the Minister of Finance Circular Number S-30/MK/02/2021. This appeal was issued in early January 2021 with a deadline for submitting reallocation and refocusing on January 19, 2021. Thus, this year’s K/L expenditure budget fell 5.6% from the previous IDR 1.032 trillion to IDR 974 trillion. (Kontan)
Rupiah Appreciation Supports SUN Auction. Apart from the benchmark series, investors can watch FR0089 today. The five series will be offered again at the SUN auction Tuesday (19/01) today. Meanwhile, the appreciation of the rupiah has become a positive sentiment in this auction. On the other hand, this auction is also in the midst of awaiting the announcement of the BI 7-DRRR benchmark interest rate for January, which is projected to remain at the level of 3.75%. This projection takes into account low inflation, maintained external stability, and as further steps to accelerate domestic economic recovery.