US economy Resilient, ready for 4% FFR. The US labor market is solid, the Unemployment Rate drops to a low of 3.50%; and ADP Employment Change Sept. added +12% MoM, indicating the US economy is poised for further FFR hikes to 4% next November. On the other hand, the tight labor market contrasts with the US manufacturing data pointing to contraction, with ISM Manufacturing Sept. at level 50.9 (Vs. Aug. 52.8).
Corporate Bonds
TBIG: Offers IDR1 T Bonds. PT Tower Bersama Infrastructure Tbk (TBIG) conducted a public offering of Shelf Registration Bonds V Tower Bersama Infrastructure Phase V year 2022 worth IDR1 trillion from 17 – 18 October 2022. The plan is that the proceeds from this bond issuance will be distributed to the company’s subsidiary, PT Tower Bersama (TB) to pay the entire principal of the loan worth IDR305.9 billion. (Emiten News)
Domestic Issue
Cadev in September fell to USD 130.8 billion. Indonesia’s foreign exchange reserves (cadev) at the end of September 2022 decreased by USD 1.4 billion to USD 130.8 billion from the position at the end of August 2022 of USD 132.2 billion. The cadev position is equivalent to financing 5.9 months of imports or 5.7 months of imports and servicing government external debt, and is above the international adequacy standard of around 3 months of imports. (Kontan)
Recommendation
One of the capital instruments facing a recession, Indonesia’s Cadev fell 1% MoM. BI’s ability to maintain monetary stability or intervene in the foreign exchange market has decreased. Data Cadev Indonesia Sept. fell USD1.4Bn to USD130.8Bn, in line with BI’s efforts to keep the Rupiah depreciated by more than 2% MoM last month. Today’s SUN market movement, amid waiting for the release of Indonesia’s Consumer Confidence Index data Sept.
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