Government Wins All Bids PBS027, PBS017, PBS029, PBS004, to cover the indicative target of Sukuk auction which is IDR 12 trillion. In the Sukuk auction the day before, the government only managed to absorb IDR 4.5 trillion in funds. Meanwhile, the results of the additional Sukuk auction (Green Shoe Option) on Wednesday (10/03) were amidst an increasing trend in yields, along with the waiting for the passage of the US stimulus law and the increase in UST yields. UST yields closed at 1.60% on Monday (08/03) trading, before finally returning to the 1.54% level. The increase in UST yield was triggered by the prospect of economic recovery and the potential for US inflation to rise. This has made global financial market players wary of reducing the Fed’s quantitative easing program, which could trigger a taper tantrum.

Surya Semesta Can Waiver from Bondholders. Surya Semesta Internusa Tbk. (SSIA) receives a waiver or waiver for non-compliance with the provisions of the bond trustee agreement article. Meanwhile, the bonds in question are Sustainable Bonds I Surya Semesta Internusa Phase I Year 2016 Series B with a principal value of IDR 328 billion. The bonds constitute 84.1% of the total outstanding bonds owed by SSIA with a total value of IDR 390 billion. In addition, the bondholders also agreed to waive the non-fulfillment of the Interest Coverage Ratio of not less than 1.7 to 1 in SSIA’s 2020 financial statements. After giving approval, the bondholders received approval compensation of 0.15% of the principal of the Bonds. Series B. (Bisnis Indonesia)

2020 Tax Expenditures Decreased by 11.3%. The Ministry of Finance (Kemenkeu) recorded that the realization of tax spending throughout 2020 was IDR 228 trillion. This figure is down by around 11.3% from the 2019 realization of IDR 257.2 trillion. For the record, the amount of tax spending last year was divided into four types of taxes. First, the expenditure for value added tax (VAT) and sales tax on luxury goods (PPnBM) of IDR 145.5 trillion. Second, income tax (PPh) worth IDR 71.5 trillion. Third, import duties and excise amounting to IDR 10.8 trillion. Fourth, land and building tax (PBB) for the plantation, forestry and mining sectors amounting to IDR 60 billion. Meanwhile, tax spending in 2020 is equivalent to 1.45% of gross domestic product (GDP). Lower than the previous year which reached 1.62% of GDP. (Kontan)

Passing of the US Stimulus Act, and Decreasing UST Yields. Market players have the opportunity to respond positively to the development of President Biden’s fiscal stimulus plan. Previously, the House of Representatives passed the fiscal stimulus package worth USD 1.9 trillion. This weekend, positive sentiment also came from the drop in yield on the 10-year UST tenor to 1.49%. The consolidation of the US bond market was supported by optimism for the Covid-19 vaccination program. Investors can start looking at FR0086, FR0087, FR0088, FR0083, and FR0089. The five series are the series that will be offered at the SUN auction next Tuesday.