SUN Market Pressure ahead of BI RDG Results. The 5-Year SUN Benchmark recorded a yield increase of up to 10Bps, to the level of 6.48%. BI’s commitment to maintain FY22E GDP growth momentum above 5%, has the opportunity to make BI 7DRRR Aug. remains at the level of 3.50%. Meanwhile, investors expect the Fed’s Dovish speech at the Annual Jackson Hole Symposium on Aug. 25-27. The latest economic data shows that the inflation rate is slowing down, potentially making the September FFR increase only by 50 bps.

Corporate Bonds
TLKM: Separates Data Center Business. PT Telkom Indonesia Tbk (TLKM) separated the database business worth IDR2.01 trillion. The trick is to move the data center business from PT Sigma Cipta Caraka (TelkomSigma) to PT Telkom Data Ekosistem (TDE). Meanwhile, this was done to restructure the Telkom Group through the consolidation of the data center business in one entity. (Emiten News)

Domestic Issue
2023 UMP Calculation to Use PP 36/2021 Formula. The Ministry of Manpower (Kemenaker) will determine the 2023 provincial minimum wage (UMP) based on the formula in Presidential Regulation Number 36 of 2021. This formula has been used for the determination of the 2022 UMP and will continue in 2023. Based on the PP there are several data needed for the adjustment formula, such as growth, urban inflation rate, Purchasing Power Parity, open unemployment rate by province in 2019-2021. (CNN Indonesia)

The increase in subsidized fuel prices for Pertalite and Solar will push September inflation higher. Investors are relatively negative about the Government’s plan to increase the price of subsidized Pertalite fuel, directly affecting the inflation rate, which in turn has the potential to reduce people’s purchasing power. The SUN market pressure was also influenced by the depreciation of the Rupiah which returned to near the level of IDR14,900/USD. On the other hand, investors are also waiting for the results of this Tuesday’s RDG, projected to maintain the BI 7DRRR in August at the level of 3.50%.

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