Based on data from Bank Indonesia (BI), consumer optimism in the April 2021 Consumer Confidence Index (IKK) indicator is 101.5. This figure is up from the previous month which amounted to 93.4. Consumer confidence has gradually improved after being in a pessimistic zone for the past 1 year. Yield of Sovereign Debt Instruments (SUN) FR0087 was at the level of 6.40% based on NHKSI Sekuritas Indonesia data. Meanwhile, UST yields increased again at the end of last week’s trading or closed at the level of 1.574%. The UST yield movement was triggered by US employment data which announced that there were 266,000 new workers in April with an unemployment rate of 6.1%.
Adhi Commuter Properti Bond Coupon Up to 11%. Adhi Commuter Properti (ACP), a subsidiary of Adhi Karya Tbk (ADHI), will issue bonds, or Bonds I Adhi Commuter Properti in 2021, of a maximum amount of IDR 500 billion. The company sets a bond coupon of 10.5% – 11%. Adhi Commuter Properti will issue bonds in two series. First, Series A bonds with an offering amount of IDR 328 billion with a coupon of 10.5% per year with a period of 367 calendar days from the date of issuance. Second, Series B Bonds with an offering amount of IDR 9 billion with a fixed interest rate of 11% per annum with a term of three years from the date of issuance. Meanwhile, the remaining amount of bonds offered of up to IDR 163 billion in Series A and Series B Bonds will be guaranteed on the best possible terms. (Investor Daily)
VAT rates will increase next year. The government plans to increase the value added tax (VAT) rate next year. In addition to pursuing the 2022 state revenue target, the government is reviewing the application of VAT rates in two schemes. First, a single VAT rate. Based on Law Number 46 of 2009 concerning VAT and sales tax on luxury goods (PPnBM), the VAT rate is in the 5% to 15% range. That’s why the current VAT rate is 10%. Second, multi-tariff VAT, namely VAT rates based on regular goods and luxury goods. In order to implement this mechanism, the government needs to revise Law 46/2009. (Kontan)
Wait and See Ahead of Long Holidays. Investors tend to wait and see, as today is the last day ahead of the long Idul Fitri holiday. Market participants can keep a close eye on the SUN benchmark series FR0086, FR0087, FR0088, and FR0083. Meanwhile, today there are no SUN auction, and there will only be an auction on May 25th. Meanwhile, the rupiah strengthened 0.6% to IDR 14,195 / USD yesterday. At the start of trading, the rupiah appreciated 1.12% to IDR 14,120 / USD, or the strongest level since the end of February.