Economic Data Reboud Support SUN Market. SUN market responded positively to the improvement in a number of economic data. The June 2020 Consumer Confidence Index (IKK) rose to 83.8 from the previous month’s 77.8. Other positive sentiments also responded positively to the June 2020 foreign exchange reserves which rose to a level of USD 131.7 billion compared to the previous month of USD 130.5 billion. Market participants also responded positively to BI intervention through the burden sharing of the burden of the State Budget (APBN). Cooperation between BI and fiscal authorities can encourage greater economic stimulus. Yesterday’s bond market movement was also supported by the appreciation of the rupiah, strengthening 0.35% to a level of IDR14,350/USD in the spot market. On the other hand, investors continue to pay close attention to the outlook for economic recovery in the 2H20 period. After a number of corporations reported a decline in performance during the 2Q20 pandemic period.
Delta Dunia Intends to Issue USD 750 Million Bonds. Delta Dunia Makmur Tbk (DOID IJ) plans to issue bonds worth USD 750 million which will be offered on the Singapore Exchange Securities Trading Limited (SGX-ST). The bonds are offered at an interest of 10%, and the principal of the bonds will be paid in full at the same time at maturity in 2027. Meanwhile, these bonds are not guaranteed by the company and are not guaranteed with material security rights on the assets of the company or issuer. Delta Dunia plans to use the proceeds from the bond issuance for payment of all or part of the obligations of some of the company’s debts with a total value of USD 465.61 million and the rest for working capital. Specifically, the company’s debt consists of debt securities of 2022 in the amount of USD 350 million and MUFG facility agreements and syndicated loan agreements in the amount of USD 115.61 million. (Investor Daily)
Digital VAT Potential IDR 10 Trillion. The Directorate General of Taxes has determined six foreign companies that will be collectors, depositors, and reporters of value added tax (VAT) for digital goods and services transactions. As a result, consumers will pay VAT at 10% of the transaction value of digital goods and services starting August 1, 2020. The six companies have received registered certificates and tax identification numbers as VAT collectors, including Amazon Web Service Inc., Google Asia Pacific Pte. Ltd., Google Ireland Ltd., Google LLC., Netflix International B.V. and, Spotify AB. Potential Director of Tax Compliance Directorate General of Tax at the Ministry of Finance (Kemenkeu) Ihsan Priyawibawa, said the potential of receiving VAT for the country could reach IDR 10 trillion. (Kontan)
External Data Optimism Encourages the Bond Market. Investors keep a close watch on a number of sentiments that could affect today’s trading. First, the strengthening of Wall Street is driven by optimism about economic recovery. Second, the development of the corona virus pandemic which is still the main focus of investors. Third, China’s inflation rate is projected to reach 2.20% at the end of this quarter, or 2.30% within the next 12 months. Meanwhile, China’s inflation rate is projected at 1.90% in 2021. And Fourth, the US unemployment rate claim data which is projected at 1.38 million or improving from the previous week’s position at 1.43 million.