The release of Indonesia’s Gross Domestic Product (GDP) data was still a positive sentiment for SUN trading yesterday. The 10-year government bond yield (SUN) FR0087 moved relatively lower, before finally closing at 6.45%. Meanwhile, positive external sentiment came from clarification by the Minister of Finance of the United States (US) Janet Yellen, who emphasized that there was no visible inflation problem. Previously, Janet Yellen, who is also a former chairman of the Fed, stated that the Fed Funds Rate must increase so that the US economy does not experience overheating.
Investors Hunt Chandra Asri Bonds. Chandra Asri Petrochemical Tbk (TPIA), the largest integrated petrochemical company in Indonesia, completed the first ongoing public offering of bonds worth IDR 1 trillion this year. The company posted a net profit after tax of USD 51.5 million in 2020 and USD 85 million in the first quarter of 2021. This issue is aimed at a longer tenor to better suit the company’s long-term growth plan, with a coupon of 7.8% for series A with a 3-year tenor of IDR 50 billion, 8.5% for series B with a 5-year tenor of IDR 587. 95 billion, and 9% for series C with a 7-year tenor, valued at IDR 362.05 billion. (Investor Daily)
As many as 17 Business Sectors Received Incentives. The government has determined seventeen business sectors that are entitled to fiscal and non-fiscal incentives. This ruling applies to both domestic investors and foreign investors. Among others: Marine and fisheries; Agriculture; Environmental and forestry; Energy and Mineral Resources; Nuclear power; Industry; Trading; Public works and public housing; Transportation; Health, medicine and food; Education and culture; Tourism; Religious; Post, Telecommunication and Broadcasting; Defense and security; Employment; and Finance. This policy is contained in Regulation of the Investment Coordinating Board (BKPM) Number 4 of 2021. (Kontan)
Investors Await Foreign Exchange Reserves Data. NHKSI Research projects that foreign exchange reserves for the period of April 2021 have the opportunity to increase again, with a range in the range of USD 136 billion to USD 138 billion. This projection is a slight increase from the previous USD 137.1 billion in March 2021. We see a potential increase in foreign exchange reserves due to a capital inflow of USD 0.7 billion in the last week of April 2021. In addition, the increase in foreign exchange reserves is also supported by optimism for a trade balance surplus. which will still continue in April 2021.