Investors Expect Higher Yields. The government managed to win IDR 11.8 trillion in the SUN auction yesterday. A total of seven series offered, namely: SPN03221019, SPN12230720, FR0090, FR0091, FR0093, FR0092 and FR0089, recorded a total incoming bid of up to IDR 29.5 trillion. Meanwhile, FR0091 became the most in demand series, recording incoming offers of up to IDR 15.2 trillion. Then followed by, SPN12230720 and FR0090 which are valued at IDR 5 trillion and IDR 4.7 trillion, respectively. This time, the Government has set an indicative target of IDR 15 trillion, with a maximum target of IDR 22.5 trillion.

Corporate Bonds
BRI Finance Issues IDR 700 Billion Bonds. PT BRI Multifinance Indonesia (BRI Finance) will issue Bonds I Year 2022 with a target fund raised of IDR 700 billion, issued in a series with a 3-year term. The company targets to be able to provide financing in this segment to reach IDR 4.1 trillion, of which the realization until May is IDR 2 trillion. (Kontan)

Domestic Issue
26 Export Services of CPO and Its Derivative Products Free of Charges. The government exempts export levies on 26 types of services at the Public Service Agency (BLU) of the Palm Oil Plantation Fund Management Agency (BPDPKS). This exemption from levies is valid from July 15, 2022 to August 31, 2022. The exemption from export levies for 26 services at the palm oil BPDP BLPU refers to the Minister of Finance Regulation (PMK) Number 115/PMK.05/2022 concerning Service Tariffs for the Public Service Agency Plantation Fund Management Agency. Palm Oil at the Ministry of Finance. This regulation stipulates that the tariff for plantation fund levies on palm oil exports is IDR0 per ton during that period. PMK Number 115/PMK.05/2022 amends the provisions of PMK Number 103/PMK.05/2022 which was promulgated only a month earlier, on June 13, 2022. (Kompas)

USD actually weakened ahead of the Fed’s aggressive Hawkish end of July, along with fears of a potential US recession. The US Dollar Index DXY closed down to 106.68 or away from its highest level of 108.54 last week. A number of parties project that BI will maintain the BI 7DRRR at the level of 3.50% and continue normalizing liquidity by increasing the reserve requirement to 9% in September.

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