Rupiah depreciation amidst the downward trend in Cadev. In addition to the fourth +75bps FFR increase in November, the market pressure for the week was also influenced by the depreciation of the rupiah. The rupiah exchange rate weakened by more than 1% WoW, in line with the increasing demand for USD towards the end of the year, for payment of debt obligations or income repatriation for foreign companies. For the record, Indonesia’s Cadev as of September is worth USD 130.80 Billion (Vs. Aug. USD 132.20 Billion).

Corporate Bonds
PWON: Earn IDR4.49 in Revenue. PT Pakuwon Jati Tbk (PWON) earned revenue of IDR4.49 trillion up to 9M22, or an increase from IDR3.79 within the same period in the previous year. Meanwhile, the cost of revenue rose to IDR2.13 trillion, while gross profit rose to IDR2.36 trillion, and profit attributable to owners of the parent entity reached IDR1.19 trillion (Emiten News)

Domestic Issue
BI Extends LCBSA and BRL Agreements. Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) agreed to extend bilateral financial cooperation agreements, namely: The Local Currency Bilateral Swap (LCBSA) and Bilateral Repo Line (BRL). The cooperation in LBCSA allows the two central banks to exchange in local currencies up to a value equivalent to IDR100 trillion. (Kontan)

US 8% inflation. In addition to Indonesia’s GDP and Cadev data, investors are waiting for the release of US inflation data. US Headline Inflation Oct. YoY is projected at 8% (Vs. Sept. 8.2%), likely to determine the market direction in the remainder of 2022. A number of economists argue, if inflation is not below 8% YoY, then the Fed may be preparing for a fifth +75 bps FFR hike in December. Meanwhile, NHKSI Research sees that Indonesia’s GDP in 3Q22 YoY is projected to grow 5.59% (Vs. 5.44% 2Q22), supported by the expansive Manufacturing and Consumer Confidence Index, at 53.7 and 117.2 levels as of September, respectively. Meanwhile, waiting for Cadev data, amid the depreciation of the rupiah which penetrated the psychological level of IDR15,700/USD last week.

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