Sukuk Auction under Indicative Target. The results of the Sukuk auction yesterday, the government managed to win IDR 7.8 trillion or below the indicative target of IDR 9 trillion. This figure is in line with the offer to enter the Sukuk auction which is only worth IDR 15.8 trillion. Currently, market players are in a wait-and-see attitude, waiting for the release of domestic inflation data next Friday. Of the six series offered, the government won PBS031, PBS032, PBS030, PBS029, and PBS033. On the other hand, the low entry bid for SPNS13122022, made the government not win any 6-month tenor Sukuk.

Corporate Bonds
Pefindo Reaffirms SMI Bond Ratings. PT Pemeringkat Efek Indonesia has reaffirmed its idAAA and idAAA(sy) ratings for the bonds and sukuk of PT Sarana Multi Infrastruktur (Persero) or SMI which will soon mature. The bonds in question are Shelf Registration Bonds II Phase II/2019 Series B worth IDR 1.3 trillion. In addition, Pefindo also reaffirmed its idAAA(sy) rating for the Sustainable Sukuk Mudharabah I Phase III/2019 Series B worth IDR 417 billion. (Bisnis Indonesia)

Domestic Issue
Fitch Maintains Indonesia’s Debt Rating. Rating agency Fitch has continued to maintain Indonesia’s debt rating at BBB or investment grade with a stable outlook on Tuesday (28/6). This is in view of Indonesia’s good medium-term growth prospects, as well as the government’s debt-to-gross domestic product (GDP) ratio which is still low. However, Fitch sees that there are still several challenges that need to be considered by Indonesia, in relation to the increasing external financing ratio as well as government revenues which are considered to be still low. (Kontan)

Investors Watch US Soft Recession Speculation. Consumer expectations, Conf. Board Consumer Confidence in June, fell to a level of 98.7 (Vs. May 103.2) sparking fears of a soft recession, and ahead of the release of next month’s earnings season. Based on Bloomberg survey data, US Annualized GDP QoQ 1Q22 is projected to contract -1.5% (Vs. 4Q21 +6.9%), as supply-chain shocks and high inflation weigh on economic growth.

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