SUN Benchmark Relatively Flat Amid Rupiah Depreciation. The rupiah depreciated or traded above the IDR14,900/USD level, triggered by the Risk On investors in the Safe Haven Greenback. DXY moved up above the psychological 106 level, increasing from the beginning of the week around the 105 level. Meanwhile, the yield on FR0093 is again approaching the psychological 7% level, with the yield on FR0091 trading at 7.21%.
Corporate Bonds
BTPN: Records Net Profit IDR1.93 T. PT Bank BTPN Tbk (BTPN) stated consolidated net profit after tax reached IDR1.93 trillion in 1H22. This was due to a decrease in interest expense by 9% YoY as well as an increase in other operating income by 5% YoY, although operating expenses increased slightly by 2% YoY from IDR3.44 trillion to IDR3.50 trillion. (Kontan)
Domestic Issue
PC-PEN Budget Realization at IDR 146 Trillion. The Coordinating Minister for Economic Affairs noted that the realization of the Covid-19 Handling and National Economic Recovery (PC-PEN) budget reached IDR 146.7 trillion as of 22 July 2022. This realization was equivalent to 32.2% of the total budget allocation of IDR 455.62 trillion. Meanwhile, the realization for health care reached IDR 31.8 trillion or 25.9% of the total ceiling of IDR 122.54 trillion. (CNN Indonesia)
Recommendation
Wait and See Ahead of 2Q22 GDP Data Release. Investors continue to pay close attention to geopolitical tensions between China and Taiwan. Meanwhile, Indonesia’s 2Q22 GDP is projected to grow 5.20% YoY (Vs. 1Q22 5.01% YoY).
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