The total bid entered at the auction of Additional Government Securities (Green Shoe Option) for Government Securities (SUN) was worth IDR 20.1 trillion, with a nominal value of IDR 10 trillion won. The government held another Greenshoe Option auction yesterday, offering back the FR0086, FR0087, FR0088, FR0083, and FR0089 series through the Bank Indonesia auction system. Meanwhile, the highest entry bid was in the FR0088 series valued at IDR 4.5 trillion, and the government won all entries in this series. Then, FR0087 was valued at IDR 4.3 trillion, and was won by IDR 721 billion. For the record, both the SUN auction results on Tuesday (02/03) and the Green Shoe Option auction on Wednesday (03/03), in total, have not met the minimum indicative target set at IDR 30 trillion.

INKP Releases IDR 3.25 Trillion Bonds. Indah Kiat Pulp & Paper Tbk (INKP) will soon issue sustainable bonds I phase IV with a principal amount of IDR 3.25 trillion. The bond issuance is part of the Sustainable Public Offering I Indah Kiat Pulp & Paper with a target fund of IDR 10 trillion. The continuous bonds I phase IV will be offered in three series. First, Series A, which has a principal value of IDR 1.08 trillion with a 370-day tenor and a fixed interest rate of 7.25% per year. Second, Series B, which has a principal value of IDR 1.89 trillion. This series has a fixed interest rate of 9.5% per annum with a 3-year tenor. Third, Series C, which has a principal value of IDR 277.08 billion. The series bonds have a 5-year tenor and offer a fixed interest rate of 10.25% per annum. INKP will use 60% of the bond issuance proceeds for the payment of Indah Kiat’s debt installments in the form of loan principal and / or interest. (Kontan)

RI Manufacturing PMI slowed down in February. IHS Markit announced the purchasing managers’ index (PMI) figure for Indonesian manufacturing for February of 50.9. This milestone marks the Manufacturing PMI for expansion for the 4th consecutive month. The manufacturing PMI level, which is still at an expansive level, clearly brings good news, because the manufacturing industry contributes 20% of the national GDP figure in 2020, and positions it as the most important sectoral industry. Although manufacturing activity again scored a level above 50, this growth rate is slowing down from the January 2021 Manufacturing PMI which was at 52.2. As explained by IHS Markit, the weakening of Indonesia’s manufacturing expansion in February was caused by the Covid-19 pandemic. (Kontan)

Investors are waiting for the release of data on foreign exchange reserves, in line with the rupiah’s pressure on trading this week. A number of market players project that Indonesia’s foreign exchange reserves for February 2021 are predicted to decline, or be in the range of USD 136 billion. This figure is lower, if compared to January which touched its highest level of USD 138 billion. Investors saw indications of capital outflows during February 2021. This can be seen from the decline in foreign ownership of Government Securities (SBN), in line with the increasing trend in UST yields and decreasing demand for foreign exchange (forex). In the short term, investors can look back at FR0087, FR0088, and FR0083.