SUN Market Mixed Ahead of US Inflation Data. Market participants focus on positive domestic economic data, in line with the absence of the August FOMC Meeting, making investors focus on positive domestic economic data. Meanwhile, the Rupiah has also consistently strengthened below the psychological level of IDR15,000/USD during August. On the other hand, a Bloomberg survey projects Indonesia’s July Trade Balance surplus to shrink to +USD3.6 billion (Vs. Jun. +USD5.1 billion) as global commodity prices.

Corporate Bonds
PTPP: Net Profit at IDR86.96 Billion. PT PP Tbk (PTPP) recorded net profit of IDR86.96 billion in 1H22 or up 1.07% YoY. Operating revenues rose 39.74% YoY to IDR9.02 trillion, supported by construction services (+47.1% YoY) at IDR7.13 trillion, followed by property and realty segments at IDR1.08 trillion, while the engineering, procurement-construction segment (EPC) was recorded at IDR593.19 billion and energy at IDR80.75 billion. (Emiten News)

Domestic Issue
Ministry of Finance Signals Tobacco Excise Rate Hike in 2023. The Directorate General of Customs and Excise at the Ministry of Finance (Kemenkeu) has signaled that tobacco excise or cigarette excise in 2023 will rise higher than this year’s 12 percent. There are four main factors that determine cigarette excise rates, one of which is economic growth. Improved economic growth will be in line with the increase in cigarette excise. In fact, with the economy growth at 3.69% in 2021, cigarette excise taxes increases by 12% in 2022. (CNN Indonesia)

Headline inflation slopes, as fuel costs fall 20%. Both Headline CPI and US Core CPI July YoY sloped to 8.5% (Vs. Jun. 9.1%) and 5.9% (Vs. Jun. 5.9%), potentially easing the Fed’s Hawkish stance. FFR Futures show the probability of a September 75Bps increase dropping from 63% to 43%, based on Refinitiv data. Meanwhile, food as an important component of the CPI calculation remains high, leaving the July CPI Headline unchanged compared to the previous month, after a 1.3% MoM increase in June.

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