Government Wins IDR 5.87 Trillion. The government managed to record a nominal value of IDR 5.87 trillion in the Sukuk auction yesterday. The total number of bids that came in was IDR 10.76 trillion, and won SPNS10012023, PBS031, PBS032, PBS029, and PBS033. On the other hand, the low entry bid for PBS030, made the government not win the 6-year tenor Sukuk in this auction.
Corporate Bonds
TBIG: Issues IDR2.2 Trillion Bonds. PT Tower Bersama Infrastructure Tbk (TBIG) will issue IDR2.2 trillion worth of bonds. This bond is part of the V Tower Bersama Infrastructure Sustainable Bonds with a total value of IDR15 trillion. One of the proceeds from the bond issuance is used to lend to a subsidiary, PT Solu Sindo Kreasi Pratama, to pay all of the subsidiary’s financial obligations amounting to USD 57.5 million. (Kontan)
Domestic Issue
OECD: Indonesia’s 2020 Tax Ratio Below Average. The Organization for Economic Cooperation and Development (OECD) noted that Indonesia’s tax ratio in 2020 was below the average tax ratio of countries in the Asia Pacific region. According to the agency, Indonesia’s tax ratio in 2020 is 10.1% of gross domestic product (GDP), lower than the Asia Pacific average tax ratio of 19% of GDP. In fact, Indonesia’s tax ratio this time is much lower than the OECD average tax ratio of 33.5% of GDP. (Kontan)
Recommendation
Green Shoe Option Sukuk Auction. The nominal won in yesterday’s Sukuk auction which was only IDR 5.87 trillion, or below the indicative target of IDR 7 trillion, prompted the government to hold an additional Sukuk auction. The government is offering the PBS029, PBS031, PBS032 and PBS033 series today.
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