Investors responded positively to the release of domestic economic data earlier in the week. April 2021 inflation was 0.13% MoM or higher than 0.08% MoM in the previous month. Meanwhile, Indonesia’s manufacturing performance has expanded again, recording the Manufacturing PMI for April 2021 to 54.6 from 53.2 the previous month. Previously, the Indonesian Manufacturing PMI in March 2021 was at 53.2 points, the highest point in the last 10 years. The 10-year SUN yield FR0087 recorded the yield at the level of 6.48%.
Pakuwon Jati Issues IDR 4.4 Trillion Bonds. Property issuer and shopping center manager, PT Pakuwon Jati Tbk (PWON) issued debt securities aka bonds of US $ 300 million or equivalent to Rp.4.4 trillion (exchange rate of Rp.14,500 / US $) whose funds are used to pay debts. The issuance was carried out on April 29, and the bond coupon is set at 4.875% per annum which will mature in 2028. The bonds are guaranteed by certain subsidiaries of PWON namely PT Artisan Wahyu, PT Elite Prima Hutama, PT Grama Pramesi Siddhi , PT Pakuwon Permai, PT Pakuwon Sentosa Abadi, PT Permata Berlian Realty and PT Dwijaya Manunggal. (CNBC Indonesia)
Inflation of 0.13% and an Increase in Manufacturing Performance. There was an increase in the inflation rate in April 2021. The Central Statistics Agency (BPS) noted, inflation in the month under review was 0.13% MoM. Inflation in April 2021 was higher than March 2021 which was 0.08% MoM. Annually, inflation for April 2021 was 1.42% YoY, higher than 1.37% YoY in March 2021. Thus, inflation for the calendar year or from the beginning of the year to April 2021, inflation was recorded at 0.58% YtD. Meanwhile, Indonesia’s manufacturing performance was back at a record high in April 2021. IHS Markit noted, Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) in April 2021 was 54.6, up from 53.2 in March 2021. An increase in manufacturing production Indonesia in the last month, in line with the very strong expansion of new orders. (Kontan)
Positive Economic Recovery Signals for Capital Inflow. Apart from the start to increase in the level of private consumption and improvement in the performance of Indonesian manufacturing, the growth in the flow of foreign funds into the domestic SUN market was also supported by the rupiah exchange rate. In the short term, investors are paying close attention to FR0086 and FR0087. As well as FR0083, which still recorded a yield above the 7% level. Today, the government is again offering PBS027, PBS017, PBS029, PBS004, and PBS028 in a Sukuk auction. In the previous Sukuk auction, expectations of high yields exceeded fair returns. This made the government not win PBS029 (12.9-years), and the low nominal won by PBS017 (4.5-years) and PBS004 (15.8-years) in the Sukuk auction in mid-April 2021.