USD actually weakened ahead of the Fed’s aggressive Hawkish end of July, along with the US potential. The US Dollar Index DXY fell to a level of 106.68 or reached its highest level of 108.54 last week. A number of parties project that BI will maintain the BI 7DRRR at the level of 3.50% and continue normalizing liquidity by increasing the reserve requirement to 9% in September. SUN Benchmark moved mixed, with FR0091 recording yield at 7.45% level.

Corporate Bonds
JACCS MPM Finance Issued IDR 600 Billion Bonds. PT JACCS Mitra Pinasthika Mustika Finance Indonesia will raise funds through the Public Offering of Sustainable Bonds I JACCS MPM Finance Indonesia Phase I 2022. The Company plans to offer bonds with a maximum principal amount of IDR 600 billion. These bonds consist of 3 series, namely, Series A Bonds with maturities of 370 calendar days, Series B Bonds with maturities of 3
years, and Series C Bonds with maturities of 5 years from the issuance date. (Berita Satu)

Domestic Issue
1H22 Investment Realization at IDR 584.6 Trillion. The Investment Coordinating Board (BKPM) reported investment realization data for the 2Q22 period, which reached Rp 302.2 trillion (+7% YoY). Cumulatively, investment realization data for the 1H22 period reached IDR 584.6 trillion (+32% YoY). The distribution of investment realization outside Java in this quarter was again superior to Java with a contribution of IDR 157.1 trillion or 52% of total investment, an increase of 38% YoY. (Kompas)

BI Behind the Curve. The potential for BI to maintain the BI 7DRRR at 3.50%, and allow the Rupiah to be relatively stable at the level of IDR15,000/USD, will put BI behind the curve, amid the potential for an increase in FFR of 75 bps – 100 bps next week. The underlying assumption of this projection is that Indonesia’s core inflation remains low at 2.63% YoY, below the median value of BI’s 2%-4% annual target. Thus, the issue of inflation in the near future has not become a concern for market participants. Unlike the case with the US, which recorded headline inflation of up to 9.1% YoY. Another opinion states that a 25 bps increase in BI 7DRRR is needed to reduce the potential for higher inflation in 3Q22.

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