Government Bonds
Speech on Financial Notes and Clarity of PPKM. The movement of the Government Securities (SUN) market earlier this week, amid waiting for clarity on the imposition of Level 4 Community Activity Restrictions (PPKM) Investors also paid close attention to Joko Widodo’s speech which underlined the crisis to the pandemic. In more detail, the government submitted the 2022 State Revenue and Expenditure Budget Draft (RAPBN), with the basic assumption that economic growth is set at 5%-5.5%.

Corporate Bonds
Polytama Propindo Offers Bond Coupons of up to 7.25%. Polytama Propindo will issue Bonds II in 2021 and Sukuk Ijarah II in 2021. In more detail, each will be issued in Series A with a 3-year tenor and a coupon of 5.75%-6.5%. Then, Series B with a 5-year tenor and a coupon of 6.25%-7.25%. This Bond II is a maximum of IDR 400 billion, and Sukuk Ijarah II of a maximum of IDR 300 billion in order to increase its business capacity. Meanwhile, Rating Indonesia (Pefindo) has assigned an idAAA (cg) rating to PT Polytama Propindo’s Bond II in 2021 and idAAAsy (cg.) to PT Polytama Propindo’s Sukuk Ijarah II in 2021. (Investor Daily)

Cigarette Excise Rates Rise Next Year. The government will increase the excise rate on tobacco products (CHT) next year, in order to achieve the target of excise tax revenue. In Book II of the Financial Memorandum along with the State Revenue and Expenditure Budget (APBN) for the 2022 Fiscal Year, the government targets next year’s excise revenue of IDR 203.92 trillion. This figure grows 11% from the 2021 outlook. The government will also carry out extensification of excisable goods (BKC), especially through the imposition of excise on plastic products. (Kontan)

Macro Basic Assumptions for 2022. Market participants observe the basic assumption of economic growth in 2022 which does not exceed 5.5%. Today’s market movements are also in the midst of waiting for the release of trade balance data in July which is projected to rise again to more than USD 2.3 billion, from USD 1.3 billion in the previous month. On the other hand, the BI 7-DRRR benchmark interest rate in August is projected to remain at 3.50%.