SUN Benchmark Mixed Early Week. The market movement at the beginning of the week was amid the wait and see attitude of investors. Previously, the rupiah exchange rate was stable and depreciated around the IDR15,000/USD level this July, with capital outflows still being monitored. Meanwhile, Indonesia’s low core inflation in June at 2.63% YoY, below the median value of BI’s annual target of 2%-4%, has led some parties to project Thursday’s RDG results, BI will keep the BI 7DRRR at 3.50%.
Corporate Bonds
BFI Finance Bonds IDR 210 Billion Due Soon. The series of bonds that will mature is the Shelf-Registered Bonds V BFI Finance Indonesia Phase II 2021 Series A which will mature on August 16, 2022. Meanwhile, the Shelf-Registered Bonds V BFI Finance Indonesia Phase II 2021 Series A is part of the Shelf-Registered Bonds V BFI Finance Indonesia Phase II in 2021 with a principal amount of IDR 1 trillion. (Bisnis Indonesia)
Domestic Issue
BI Improves Forex Market Regulations. Bank Indonesia refined the provisions regarding the foreign exchange market by issuing Bank Indonesia Regulation (PBI) Number 24/7/ PBI/2022 concerning Transactions in the Foreign Exchange Market. BI stated that the regulation was intended to respond to the dynamics of the global and domestic economy and to achieve ideal forex market conditions. To that end, BI issues an integrated regulation through the merging of provisions in the foreign exchange market into one that regulates the principles, flexibility of market participants and encourages optimal supply or demand for foreign exchange. (Kontan)
Recommendation
Government Targets Fresh Funds of IDR 22.5 Trillion. Based on DJPPR data, the Government is holding another Government Bond (SUN) auction today, setting an indicative target of IDR 15 trillion – IDR 22.5 trillion of the seven series offered. The seven series are: SPN03221019 (New Issue); SPN12230720 (New Issue); FR0090, FR0091, FR0093, FR0092, and FR0089. Meanwhile, the SUN auction this time, amid a wait and see attitude, investors are waiting for the results of the BI RDG on Thursday.
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