International Monetary Fund (IMF) estimates that Indonesia’s 2020 Gross Domestic Product (GDP) will only contract by 1.5% in the World Economic Outlook (WEO) last October. Meanwhile, in WEO January 2021, the figure was revised lower to contract 1.9%. Meanwhile, in 2021, the IMF estimates that Indonesia’s GDP will grow by 4.8%, or a deep correction compared to last October’s WEO of 6.1%. The price of Government Securities (SUN) on Wednesday’s trading was relatively depressed. With the yield for series FR0082 with a maturity of 10 years, it rose to the level of 6.33%. On the other hand, the IMF predicts that the world economy will grow 5.5% in 2021, or higher than the previous projection last October. This IMF projection refers to the outcome, namely the speed between the mutation of the virus and the vaccination program to end this outbreak. The IMF also sees the policy capacity of each country, to support it effectively until the vaccination occurs.
Sri Rejeki Isman Delays Bond Issuance. Sri Rejeki Isman Tbk (SRIL) has postponed the plan to issue debt securities with a principal value of up to USD 325 million, or approximately equivalent to IDR 4.58 trillion. The plan was postponed, as market conditions had not improved. Even though it still has sufficient liquidity, SRIL will look for the best option to meet the funding needs to finance this year’s business plan. Previously, the bonds denominated in the United States dollar (US) would be listed on the Singapore stock exchange with the guarantee of Sritex’s subsidiaries, namely Sinar Pantja Djaja, Bitratex Industries and Primayudha Mandirijaya. Based on the financial reports per 3Q20, this textile company has current assets of USD 1.04 billion in which the total cash and cash equivalents are USD 158.62 million. (Kontan)
BI Receives IDR 25.9 Trillion Government Debt Instruments. Bank Indonesia (BI) states that since the extension of the Joint Decree of the Minister of Finance and the Governor of BI on April 16, 2020 Number 566 / KMK.08 / 2020 and SE No. BI / 2020 on December 11, 2020. BI has purchased long-term government debt securities in the primary market amounting to IDR 25.9 trillion from the beginning of 2021 to 20 January 2021. So that, until 20 January 2021, it is recorded based on data on auction transactions of government bonds. , BI has narrowed state debt securities by IDR 898.5 trillion. This amount includes the realization of the purchase of Government Securities (SBN) from the primary market based on the first joint decision (KB) of IDR 75.9 trillion and the second (KB) of IDR 397.6 trillion. As for 2021, BI’s purchases of government bonds until January 20, 2021 amounted to IDR 25.9 trillion, with details of IDR 9.2 trillion in the main auction and IDR 18.6 trillion purchases through green shoe options. (Kontan)
Investors are Interested Again in Long Tenors. This can be seen from the results of the Green Shoe Option Sukuk auction last Wednesday. The auction results show that the most bids come in the long tenor PBS028. This sukuk, which will mature on October 15, 2046, has posted an incoming bid of up to IDR 3.9 trillion. From this offer, the nominal amount won was IDR 2.8 trillion. Furthermore, investors are interested in medium tenors, with PBS029 due March 15, 2034 posting an incoming offer of IDR 1.8 trillion. With a weighted average yield of 6.56%, the government won all offers for PBS029. Meanwhile, the total bid entered in the additional auction was IDR 8.1 trillion, with a nominal value of IDR 7 trillion won.