The economy grew impressively, BI remained Dovish. Indonesia’s GDP 2Q22 YoY grew expansive up to 5.44% (Vs. Surv. 5.17%; 1Q22 5.01%), reassuring BI to remain Dovish and maintain the momentum of the gradual domestic economy recovery, in addition to Core CPI which was maintained below 3%YoY. Meanwhile, investors are still watching the July Foreign Reserves, which fell 3% MoM to USD132.2B, slightly reducing BI’s room amidst the volatility of the Rupiah at IDR14,830/USD IDR14,940/USD in early August.

Corporate Bonds
KAI and INKP Issue Bonds and Sukuk Today. PT Kereta Api Indonesia (Persero) will officially list its Shelf-Registered Bonds I and Phase I/2022 Shelf-Registered Sukuk on the Indonesia Stock Exchange (IDX) on Monday (8/8/2022). But not only KAI, Sinar Mas Group Issuers, PT Indah Kiat Pulp & Paper Tbk. (INKP) will issue bonds and sukuk on the same day. KAI’s bonds and sukuk have a total nominal value of IDR 2 trillion and both instruments have earned a double A plus or AA+ rating from PT Pemeringkat Efek Indonesia (Pefindo). Meanwhile, the Phase I 2022 Sustainable Sukuk Ijarah for Indonesian Railways is IDR 500 billion from the target of IDR 800 billion. (Bisnis Indonesia)

Domestic Issue
Indonesian Economy Grows 5.44%, Administration and Education Services Declines. Indonesia’s economic growth in 2Q22 reached 5.44% YoY, higher than the previous period of 5.01%. However, business sectors such as government administration and education services fell by -1.73% and -1.15%, respectively. Of the total business sectors, transportation and warehouse grew the highest at 21.27% driven by improved mobility. (CNN Indonesia)

US inflation reaches its peak. Brent and WTI crude oil October 2022 contract fell more than 9% in the past week, showing that inflation has reached its peak. Bloomberg survey projects US July CPI Headline slopes to 8.8% YoY (Vs. Jun. 9.1% YoY). Fears of a global recession suppresses Brent and WTI oil prices to USD94,12/Barrel and USD87,56/Barrel, the lowest level compared to prices before the Russia-Ukraine conflict last February.

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