The two series recorded a bid to cover ratio of up to 10.7x and 13x, respectively. This ratio is the highest compared to other series, which is in the range of 1.1x to 9.2x. The government only won FR0087 worth IDR 700 billion, from the bid for this series of IDR 7.5 trillion. Meanwhile, FR0088 is worth IDR 300 billion from the incoming offer for this series worth IDR 3.9 trillion. Concerns about the return of US Treasury (UST) yields have made investors tend to wait and see at the last auction of Government Securities (SUN) for the 1Q21 period. The increase in UST yield will re-increase expectations of SUN yield, reducing the interest in SUN being offered at this auction. On the other hand, the government won many short tenor SUN SPN12210701 and SPN12220331 in the auction yesterday. The two series won IDR 400 billion (bid to cover ratio 1.1x) and IDR 600 billion (bid to cover ratio 1.2x), respectively.

Chandra Asri Petrochemical Issues IDR 1 Trillion Bonds. Chandra Asri Petrochemical Tbk (TPIA) will issue and conduct a public offering of sustainable bonds III Chandra Asri Petrochemical with a maximum amount of IDR 1 trillion in April 2021. These bonds will be offered in three series. First series A worth IDR 50 billion with an interest of 7.80% which will mature in the next 3 years to be precise on April 15, 2024. Then series B worth IDR 587.95 billion with an interest of 8.50% and will mature in the next 5 years. or April 15, 2026. Furthermore, series C is worth IDR 362.05 billion with 9.00% interest and will mature in the next 7 years on April 15, 2028. Meanwhile, the schedule for the public offering of sustainable bonds is as follows: public offering period 9 – April 12, April 13 allotment, April 15 electronic distribution, and April 16 listing date on the Indonesia Stock Exchange. (Kontan)

The Directorate General of Taxes Records Realization of 2020 Annual Tax Return Reporting Only 9.9 Million. The government hopes that this year more taxpayers (WP) will report the 2020 Annual Notification Letter (SPT). This is in line with the increasing number of registered taxpayers. However, the level of compliance ratio is still low. The Directorate General (Ditjen) of Taxes, Ministry of Finance (Kemenkeu) reported that until March 30, 2021, 9,945,801 Annual Tax Returns 2020 had been reported. This figure is up 13.76% or around 1.2 million from the 2019 Annual SPT report which took place in the same period last year which reached 8,742,603. In detail, for individual taxpayers (WP OP) including employee taxpayers, there were 9,645,965 Annual Tax Returns 2020, up 13.64% YoY. Meanwhile, for corporate taxpayers, there are 299,838 2020 Annual Tax Returns that have been reported to the Directorate General of Taxes, up 17.52% YoY. (Kontan)

UST Yield Rises Again, Pressing Interest in Green Shoe Option SUN. The 10-year UST yield again rose to the level of 1.77% or the highest level in the last 14 months. UST market players have responded to the vaccination program and infrastructure spending in the US, stimulating economic recovery which in turn has an impact on rising inflation. Today, the government is again carrying out the Green Shoe Option SUN auction, offering FR0086, FR0087, FR0088, FR0083, and FR0089. The five series are offered with each weighted average yield at the level of 5.87%; 6.76%; 6.60%; 7.45%; and 7.07%. NHKSI Research sees the yield as less attractive, as UST treasury yields rose by 6 bps to 1.77% yesterday’s trade.