Currently, the yield spread for Indonesian Government Securities (SUN) with 10-year tenor and US Treasury (UST) with the same tenor is in the range of 485 bps. These spreads are narrower than last year. On the other hand, the plan to impose stricter Large-Scale Social Restrictions (PSBB) next week also remains a negative sentiment on the bond market yesterday. Previously, the strict PSBB had also returned to restrain the rupiah. The rupiah exchange rate on the spot market weakened 0.11% to the level of IDR 13,910 / USD. Meanwhile, the middle rate of Bank Indonesia (BI) was depressed 0.09% to the level of IDR 13,398 / USD. A number of market players responded negatively to the political uncertainty in the United States (US), as Trump’s supporters occupied the Capital Hill building. On the other hand, the results of the Federal Open Market Committee (FOMC) meeting are still implementing loose monetary policy for the long term.

Angkasa Pura II Pockets IDR 957 Billion Remaining Bond Funds. Angkasa Pura II pocketed the remaining proceeds from the Public Offering of Sustainable Bonds I Phase II Year 2020 of IDR 957 billion from the total bonds issued worth a total of IDR 2.25 trillion. Until December 31, 2020, the realization of the use of the net proceeds from bond issuance was IDR 1.28 trillion. This amount consists of the company’s realization that it will use IDR 32 billion to pay part of the outstanding loan, IDR 450 billion for working capital payments and IDR 806 billion for capital expenditure payments. (Investor Daily)

2020 Subsidy Realization Reaches IDR 196.2 Trillion. The Minister of Finance said that the realization of the distribution of subsidies in 2020 was IDR 196.2 trillion or 102.2% of the target in Presidential Decree 72/2020 of IDR 192 trillion. However, on a year-on-year basis, there was a 2.9% decline from the 2019 realization which was recorded at IDR 201.8 trillion. Subsidies are used to maintain people’s purchasing power and support MSMEs through the PEN program. Even so, the subsidy component that experienced a significant decline came from the fuel oil (BBM) subsidy which was recorded at only IDR 14.9 trillion. Decreasing community mobility means that the fuel subsidy can be controlled to decrease from the amount distributed, namely 14.5 million kilo liters. (Investor Daily)

Concerns about the strict PSBB in Java and Bali have subsided. The government emphasizes that the strict PSBB, which will take effect next week until January 25, 2021, is only implemented in a number of cities that meet the criteria. This reduces the worries of market participants. This weekend’s trading, investors also responded positively to the success of the Democratic Party in controlling the US Senate, making market players hope for a bigger stimulus. Other external sentiments, stemming from Biden’s inauguration as US president and optimism ahead of the national vaccination program. Investors can keep an eye on FR0087, and FR0088 in the short term.