The majority of Government Securities (SUN) were collected by market players yesterday, except for the 5-year tenor, 15-year tenor and 25-year long tenor which were relatively released by investors. In early trading week, market players began to pay close attention to the release of Gross Domestic Product (GDP) data such as the US, South Korea, Germany, and the European Union. US GDP data on Thursday is projected to grow quarterly or still contract annually. This data release is influenced by the US consumption rate fell significantly in 4Q20. US retail sales fell 0.7% after a relatively depressed previous month. Domestic sentiment, the policy of re-enactment of Restrictions on Community Activities (PPKM) for the next two weeks has made market players interested in SUN again. In line with this, the Provincial Government of the Special Capital Region of Jakarta has also extended the Large-Scale Social Restrictions (PSBB) period. Restrictions on economic activity have the opportunity to slow down domestic economic recovery.

SMF Offers IDR 2 Trillion Bonds and Sukuk. Sarana Multigriya Finansial (Persero) or SMF plans to issue bonds and sukuk amounting to IDR 2 trillion. SMF will issue Shelf Registration Bonds V Phase V in 2021 with a value of IDR 1.9 trillion. These bonds are part of the Sustainable Bonds V with a total value of IDR 19 trillion, issued in two series. Series A is issued with a principal value of IDR 1.5 trillion, an interest rate of 4.75% and a tenor of 370 days. Meanwhile, series B was issued with a principal value of IDR 400.66 billion, an interest rate of 5.75% and a 3-year tenor. SMF will also issue sukuk amounting to IDR 100.01 billion. The sukuk issuance is part of the Sustainable Sukuk Mudharabah I with a total value of IDR 2 trillion. The bond public offering period will take place on February 4-5, allotment on February 8, electronic distribution on February 10, and listing on the Indonesia Stock Exchange (IDX) on February 11, 2021. (Investor Daily)

4Q20 Investment Realization Grows 3.1% YoY. The Investment Coordinating Board (BKPM) recorded investment realization in 4Q20 of IDR 214.7 trillion. This figure is up 3.1% compared to the same period in 2019. This achievement succeeded in creating jobs for 294,780 Indonesian Workers (TKI). During this period, foreign investment (PMA) contributed IDR 111.1 trillion (51.7%), while domestic investment (PMDN) was IDR 103.6 trillion (48.3%). Cumulatively, the achievement of investment realization throughout 2020 managed to reach IDR 826.3 trillion or 101.1% of the IDR 817.2 trillion target. In composition, PMDN reached IDR 413.5 trillion (50.1%), while FDI was IDR 412.8 trillion (49.9%). The acquisition in 2020 was able to absorb up to 1,156,361 TKI with a total of 153,349 investment projects. (Kontan)

Investors Pay Attention to the Latest SBN Buyback Rules. The Ministry of Finance changed a number of regulations regarding the buyback of Government Securities (SBN). Through the Minister of Finance Regulation (PMK) No. 3 of 2021, concerning amendments to PMK No. 149 of 2018, several articles in the regulation have been amended. One of them is Article 14, in which in the previous regulation, Bank Indonesia (BI) was not included as the SUN seller party, but in this regulation, BI was involved in the SUN selling party. With this change in regulation, the government can anticipate any pressure on the domestic SBN market. Investors can look at PBS027, PBS017, PBS029, PBS004, and PBS028, which are the series offered in today’s Sukuk auction.