Risk-On Investors in SUN. All SUN Benchmarks posted lower yields, with FR91 dropping 3bps to 7.61%. Risk-On selective investors in the bond market, as yield on GIDR10Y touched an attractive level of 7.65% or 355Bps higher than UST10Y which was at 4.10%.

Corporate Bonds
Voksel Electric Bond Issuance Schedule. PT Voksel Electric Tbk (VOKS) issued IDR 250 billion bonds. The bonds are part of the Shelf-Registered Bonds I Phase I Year 2022 with a principal amount of IDR 250 billion. The bond public offering period will be held on October 26-27 2022. Meanwhile, the allotment date will be October 28, 2022. Then the electronic distribution will be on November 1, 2022 and listing on the Indonesia Stock Exchange (IDX) on November 2, 2022. (Kontan)

Domestic Issue
The 2023 State Budget Deficit Will Return Below 3% of GDP. The government returned the deficit to return the state budget next year to become normal again after having to work harder due to the shock of the last Covid-19 pandemic. For information, the 2023 state budget deficit is set at 2.84% of GDP or nominally IDR598.2 trillion. Gradually, the state budget deficit has decreased from 6.14% in 2020 to 4.57% in 2021, then down to 4.50% in Presidential Regulation no. 98 of 2022. (Kontan)

The October inflation rate is subsiding. Based on a Bloomberg Survey, Indonesia’s Headline Inflation rate for October is projected to be only 0.09% MoM. Besides the normalization of several food commodity prices, NHKSI Research sees the impact of the significant increase in subsidized fuel prices by up to 30%, as reflected in the September inflation rate. Headline Inflation in September reached 1.17% MoM, compared to August, which recorded deflation of 0.21% MoM.

Download full report HERE.