Weekly Briefing: Indonesia to Auction US$2B Gov’t Bond

The impact of COVID-19 colored the Indonesian economy faster than expected, said the government officials - Photo by Finance Ministry Office
JAKARTA (TheInsiderStories) — Good morning! As a part of financing 2019 State budget, Indonesia eyes up to Rp30 trillion (US$2.12 billion) from government bond auction. According to Finance Ministry’ Directorate General of Financing and Risk Management, the debt securities auction will be held on Tuesday (04/09).
There are seven series to be auctioned such as SPN03190710 and SPN12200410 have discounted coupons and will due on July 10 2019 and April 10 2020 respectively. Others, FR0068, FR0076, FR0077, FR0078, and FR0079 have coupons around 7.37-8.37 percent. The maturity dates vary from May 15, 2024 to 2048.
Then, Financial Services Authority will oblige to-be-public-listed companies to allocate 40 percent of its shares for retail investors through e-Bookbuilding. But the regulation will be done in stages, starting from 10 percent.
The policy aims to maintain share price. Recently, companies that do Initial Public Offering (IPO) mostly have big investor as its buyer. Its expected this mechanism make the share price is easily played.
The authority will also release a regulation to limit medium teerm notes starting third quarter of 2019. The policy will stipulate a non-general offering, so there will be no free-trade between two parties. Financial Services Authority is now discussing the regulation plan with industry players.
An online platform GO-JEK, PT Aplikasi Karya Anak Bangsa, becomes Indonesia’s first decacorn. The ride-hailing operator valuation has reached $10 billion and rank the company on 19th globally.
Google, Tencent Holdings, Temasek Holdings, Astra International, and Meituan Dianping are some of GO-JEK’ investors. Not only playing in Indonesia market, the company has also expanded to Southeast Asia.
Ahead of this week, Indonesia will announce foreign exchange reserve, retail sales survey report, business activity survey report, and prompt manufacturing index.
Amid Brexit chaos, United Kingdom will have its Gross Domestic Product (GDP) and manufacturing production released. Meanwhile, European Central Bank will decide interest rate, also with marginal lending facility and deposit facility. The Eurozone central bank will also give policy statement.
Then, United States’ Federal Open Market Committee (FOMC) is going to have meeting minutes. It is a detailed record of the committee’s policy-setting meeting held about two weeks earlier.
The minutes offer detailed insights regarding the FOMC‘ stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
May you have a profitable week!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia