Most of the Government Securities (SUN) experienced a decline in yield on yesterday’s trading. Market players responded positively to the Markit version of the Purchasing Managers’ Index (PMI) for the manufacturing sector for the period December 2020. Indonesia’s manufacturing PMI has expanded from 50.6 to 51.3, indicating that Indonesian manufacturing has increased again after being affected by the Covid-19 virus pandemic. Investors also responded positively to the December inflation data of 0.45% MoM or 1.68% YoY, indicating an improvement in people’s purchasing power after 3 months of deflation in a row.

ADHI: Earn IDR 1.6 Trillion by the End of 2020. Adhi Karya Tbk (ADHI) has pocketed IDR 1.6 trillion from the payment of the two projects that have been carried out by the company, namely, Jabodebek Light Rapid Transit (LRT) Phase I and the Banda toll road Aceh-Sigli. ADHI received the seventh payment for the Jakarta-Bogor-Depok-Bekasi LRT project. Payment of IDR 1.1 trillion, including taxes, was made on December 30, 2020. Just so you know, the payment for this project was received from the government via Kereta Api Indonesia (Persero). (Kontan)

BPS Records Inflation in December 2020 at 0.45%. Central Bureau of Statistics (BPS) recorded inflation in December 2020 at 0.45% MoM. This figure is higher than November 2020 inflation of 0.28% MoM. Annually, inflation in December was recorded at 1.68% YoY. This inflation was also supported by the food, beverage and tobacco expenditure category with inflation of 1.49% MoM and contributed to inflation of 0.38%. Inflation in December 2020 was also driven by inflation in the transportation category of 0.46% MoM, accounting for 0.06%. (Kontan)

Investors Pay Attention to New Benchmark and New Issuance. The government through the DJPPR will conduct the initial SUN auction in 2021 today. The government offers SPN03210406 ​​(New Issuance), SPN12220106 (New Issuance), FR0086 (Reopening), FR0087 (Reopening), FR0088 (New Issuance), FR0083 (Reopening), and FR0089 (New Issuance). This inaugural SUN auction, an indicative target of IDR 35 trillion and a maximum target of IDR 52.5 trillion. Meanwhile, positive manufacturing sentiment and the purchasing power of Indonesian consumers will support the auction of SUN this time. Meanwhile, high liquidity has the opportunity to encourage the banking sector to return to interest in the SUN auction this time. A number of investment managers also have the opportunity to be interested in this auction to add new reference series, particularly the FR0086 and FR0087.