SUN Benchmark Flat ahead of 2Q22 GDP Data Release. Apart from observing geopolitical tensions between China-Taiwan, investors are looking forward to the release
of Indonesia’s 2Q22 GDP data which is projected to grow 5.20% YoY (Vs. 1Q22 5.01% YoY). Benchmark SUN yield FR0091 edged up 1.2 bps to 7.19%.
Corporate Bonds
SMMA: Offers IDR1.84 Tn in Bonds. PT Sinar Mas Multiartha Tbk (SMMA) will conduct a public offering of the Sinar Mas Multiartha Phase II Shelf-Registered Bonds II 2022 worth IDR1.84 trillion. As for the details, series A is worth IDR429.35 billion, series B is worth IDR13.1 billion, series C is worth IDR305.131 billion, and series D is worth IDR1.102 trillion. (Emiten News)
Domestic Issue
Ban on CPO Exports Lowers BLU PNBP Revenue. The Ministry of Finance noted that the revenue of the Public Service Agency (BLU) fell 24% in 1H22 because the export of Crude Palm Oil (CPO) and its derivatives was banned from April 24 to May 22, 2022. The Director of Non-Tax State Revenue (PNBP) of the Ministry of Finance revealed that the ban on CPO exports lowers the revenue from the Palm Oil Plantation Fund Management Agency (BPDPKS) by 35% from IDR 39.07 trillion to IDR 25.22 trillion as of June 2022. (CNN Indonesia)
Recommendation
2Q22 GDP was more expansionary, positive catalyst for weekend SUN market. BI’s Dovish commitment maintains economic growth momentum, making 2Q22 GDP projected to grow 5.17% YoY (Vs. 1Q22 5.01% YoY). Besides BI 7DRRR being maintained at a low level of 3.50%, the 2Q22 economy was supported by loose mobility which then boosted consumption and production levels during Ramadan and Eid.
Download full report HERE.
