Public optimism decreased, occurring in all expenditure categories. Consumer Confidence Index Indonesia Sept. fell to the level of 117.2 points (Vs. Aug. 124.7 points), during that period the inflation rate increased significantly, or the annual CPI Headline was close to 6%, and monthly exceeded 1%. Earlier in the week, SUN benchmarks were relatively weak, with FR91 recording a 4bps yield increase to 7.26%.
Corporate Bonds
GIAA: Intensify Restructuring. PT Garuda Indonesia (Persero) Tbk is projecting positive performance in the fourth quarter of 2022; this is in line with the intensive step in implementing overall restructuring. Their optimism is supported by the increased opportunity in public demand for the peak season period at the end of the year. The corporate action realization also assists the optimism through optimizing the production equipment, which is reinforced by the acceleration of the fleet restoration program. (Emiten News)
Domestic Issue
Consumer Conference Index is decreasing. Public optimism towards the economic condition is decreasing, as can be proven by the Consumer Confidence Index (CCI) which recorded 117,2 on September 2022, following the increase in fuel prices. In that period, the CCI was lower than in August 2022, which is 124,7 yet still stands an optimist level. The down in consumer confidence is recorded in every expenditure category, especially in the respondents with the expenditure of IDR 4 million and IDR 1 million to IDR 5 million. (Bisnis Indonesia)
Recommendation
Government Issue five fixed rate series, in today’s SUN auction. The five series are FR95, FR96, FR98, FR97 and FR89, complementing the offering of two short tenor SUNs SPN03230111 (New Issue) and SPN12231012 (New Issue). The government has set an indicative target of IDR 10 trillion, with a maximum target of IDR 15 trillion.
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