SUN market at the beginning of the week was mixed. In addition to Indonesia’s GDP and Cadev data, investors are waiting for the release of US inflation data. US Headline Inflation Oct. YoY is projected at 8% (Vs. Sept. 8.2%), likely to determine the market direction in the remainder of 2022. A number of economists argue, if inflation is not below 8% YoY, then the Fed may be preparing for a fifth +75 bps FFR hike in December.
Corporate Bonds
Sinar Mas Group Paper Company Issues Bonds. The Sinar Mas Group paper producer PT Oki Pulp & Paper Mills (OPPM) listed bonds and sukuk worth IDR 3 trillion on the Indonesia Stock Exchange on Monday (7/11). OPPM will issue Oki Pulp & Paper Mills Bond III in 2022 with a maximum principal amount of IDR 3 trillion, with details of IDR 2.12 trillion bonds and IDR 885.86 billion sukuk. (Bisnis Indonesia)
Domestic Issue
Economy Grows 5.72% in Third Quarter. The Statistics Indonesia noted that Indonesia’s economic growth reached 1.81% in 3Q22 yesterday. With this realization, the Indonesian economy managed to grow 5.72% YoY. In addition to the maintained purchasing power, economic growth was also supported by increased community activities which previously were restrained by the Implementation of Restrictions on Social Activities (PPKM) during the last Covid pandemic. (CNN Indonesia)
Recommendation
Positive sentiment for Indonesia’s GDP, after BPS recorded Indonesia’s economy in 3Q22 grew 5.72% or exceeded market expectations of 5.60% YoY. From a global perspective, investors are also starting to pay attention to whether the Fed will close 2022 with an FFR of 4.5% or more, namely monetary policy that will have an impact on the economy in 2023.
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