SUN market at the beginning of the week was relatively flat. As for external sentiment, China has again held its benchmark lending rate to support economic growth, but without pushing the Yuan lower. Data shows China’s Nov. 1Y and 5Y Loan Prime Rates were at 3.65% and 4.30%, respectively. The People’s Bank of China (PBOC) again maintained its benchmark lending rate for the third month in a row, bolstering a slowing economy and anticipating capital outflows from China.

Corporate Bonds
WSKT: Record New Contract Value (NKB) of IDR13.38 T in October. PT Waskita Karya (Persero) Tbk (WSKT) recorded a New Contract Value (NKB) with a total of IDR13.38 trillion up to October 2022 or a rise of 10.64% YoY. Additionally, the additional source for the NKB came from the Government’s projects at 68.19%, Private projects at 10.22%, State-Owned Enterprises (BUMN) and Regionally-Owned Enterprises (BUMD) at 9.57%, and Business Development of the Company’s Subsidiaries at 12.03% (Emiten News)

Domestic Issue
BI: Indonesia’s GDP in 2023 May Slow to 4.4%. Indonesia’s annual economic growth may slow to 4.37% next year as an impact of domestic monetary tightening, the governor of Bank Indonesia (BI) stated. Meanwhile, BI maintains its 2022 gross domestic product (GDP) growth forecast, which is biased, at 4.5% to 5.3%. BI also predicts the key inflation at 6.11% by the end of 2022 and 3.61% by the end of 2023. Their presentation showed that the 2022 inflation is BI’s forecast as of November 3. (Investor Daily)

The speculation of China’s Zero-Covid Policy re-implementation. Investors are worried about the Zero-Covid Policy re-implementation after China recorded an increase in infection cases. Implementing the Zero-Covid Policy will reduce China’s economic activity, affecting their demand reduction for crude oil. The weakening of crude oil prices, both Brent and WTI, by more than 5% a week was also influenced by reports about Saudi Arabia and other OPEC oil producers that were discussing a production increase of up to 500,000 barrels per day. This matter will be further considered at the OPEC+ meeting on December 4.

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