Consumer optimism decreased, pressured the SUN auction bid. The bid for SUN auction was worth IDR 52.26 trillion, lower than the previous auction which reached IDR 78.34 trillion. However, yesterday’s bids were still above the government’s indicative target of IDR 20 trillion. Overall, the government is auctioning the Treasury Bills series PN03201209 and SPN12210909 and SUN series FR0086, FR0087, FR0080, FR0083, and FR0076. The highest number of incoming bids was recorded for SUN series FR0086 valued at IDR12.68 trillion, with the nominal amount won recorded at IDR 7.60 trillion. Then followed, SUN series FR0087 recorded an incoming bid of IDR 12.20 trillion with a nominal amount won of IDR 7.35 trillion. Meanwhile, SPN03201209 recorded the lowest incoming bids of IDR 2.6 trillion, followed by incoming offers of FR0083 worth IDR 4.35 trillion. Bank Indonesia (BI) reported the Consumer Confidence Index (IKK) for August at the level of 86.9, up slightly from the previous month of July at 86.2. For the record, the IKK has been below the 100 level in the last five months, or the lowest level since 2005 last March.
Pegadaian issues IDR 3.25 trillion debt securities. Meanwhile, the funds will be used as additional working capital for conventional and sharia financing business activities. The bond issuance is part of the Pawnshop IV Sustainable Public Offering (PUB) with a target fund of IDR 7.8 trillion. The Continuous Bond IV Phase III Year 2020 is offered in two series. The Series A bonds have a principal amount of IDR 1.295 trillion with a fixed interest rate of 5.50%, and have a maturity of 370 days. Meanwhile, Series B bonds are offered with a principal amount of IDR 1.125 trillion with a fixed interest rate of 6.45%, with a term of three years. Currently Pegadaian is again offering sustainable sukuk mudharabah I Phase III 2020 amounting to IDR 835 billion. For Series A, the funds offered are IDR 704 billion with a ratio of 18.334% of the revenue with a period of 370 days. Series B sukuk mudharabah is offered with a total fund of IDR 131 billion with a ratio of 21.50% with a term of 3 years. The bonds received a AAA (triple A) rating with a stable outlook, as well as the mudharabah sukuk with a AAA (triple A sharia) rating with a stable outlook. The rating was given by the Indonesian Securities Rating Agency (Pefindo) and was updated on September 4, 2020. (Investor Daily)
Consumer Optimism Decreased. Consumer confidence in August 2020 has improved again. Based on a Bank Indonesia consumer survey, the Consumer Confidence Index (IKK) last month was 86.9, up slightly from July 2020 at 86.2. BI said this condition indicates that consumer confidence in economic conditions is improving. The improvement in consumer confidence in August 2020 was driven by consumer perceptions of current economic conditions. This is reflected in the Current Economic Index (IKE) of 55.6. Although it is still quite low and still under the pessimistic zone, this is an increase from the previous month which amounted to 50.7. On the other hand, consumer expectations of the forecast for economic conditions in the next 6 months tend to be weaker than the previous month. This can be seen from the Consumer Expectation Index (IEK) which was recorded at 118.2 or lower than 121.7 in the previous month. Despite weakening, the IEK is still in an optimistic zone or with an index of more than 100. (Kontan)
Optimism for Domestic Economic Recovery. A number of investors responded positively to the CPI in August which rose to a level of 86.9, developments in the discovery of the Covid-19 vaccine and relaxation of the PSBB. Investors also responded positively to the Minister of Finance’s affirmation regarding BI’s commitment to independence. Meanwhile, on external sentiment, business players are keeping a close eye on the conflict between the US and China, after the blocking of a semi-conductor company from China by the US. Yesterday, rupiah on the spot market weakened 0.175 to the level of IDR 14,765 / USD. Meanwhile, BI’s middle rate weakened 0.29% to IDR 14,798 / USD. In the short term, investors can take advantage of the momentum of short tenor movements, FR0086, FR0087, FR0081, and FR0082.