Long Tenor Amid Low Interest Rate Trends. Sukuk auction results recorded PBS025 and PBS028 bids to be the highest. There is still room for BI 7-DRRR cuts, making long-tenor bonds an investment option for obtaining capital gains. Based on data from the DJPPR, PBS025 recorded incoming bids of IDR 7.31 trillion with a weighted average yield of 7.12% and a return of 8.37%. Meanwhile, PBS028 received a total incoming bid of IDR 5.92 trillion with a weighted average yield which won 7.53% and a yield of 7.75%. Total incoming bids were recorded at IDR 20.79 trillion, lower than the previous auction of IDR 38.32 trillion. The bid entered into the state sukuk auction this time is the lowest since May 2020.
Aneka Gas Industry Bonds and Sukuk Issuance IDR 305 billion. Aneka Gas Industri Tbk (AGII) offers bonds and sukuk ijarah worth a total of IDR 305 billion. The company will use the bonds issuance proceeds to pay off three bonds maturing on December 5, 2020. The company issued Phase II sustainable bonds worth Rp 100 billion with an interest rate of 9.25% per year and a term of 370 days. The first bond interest will be paid on January 2, 2021, and will be paid every three months. Meanwhile, the second stage of sustainable sukuk ijarah is offered as much as IDR 205 billion. Ijarah installments of Rp. 18.96 billion per year. The sukuk maturity is also 370 days, or October 12, 2021. In order to issue bonds and sukuk ijarah, the company has obtained a rating from Fitch Ratings Indonesia, namely A-. Meanwhile, the public offering period of debt securities will last September 25, 28, and 29, September 30 allotment, and distribution and listing schedule on the Indonesia Stock Exchange (IDX) on October 2 and 5, respectively. From the issuance of bonds, Aneka Gas Industri is ready to pay sustainable bonds I phase II of 2017 series A worth IDR 98.78 billion. Then, the sustainable bonds I phase II of 2017 series B worth IDR 95.51 billion. Both of these series have an interest rate of 9.5%. Meanwhile, the latest sukuk issuance will be used to pay off the second stage of the series A sustainable sukuk ijarah I 2017 worth IDR 107 billion. This sukuk installment is IDR 95 billion per year. (Investor Daily)
Trade balance surplus of USD 2.33 billion. Indonesia’s trade balance returned to a surplus. The Central Statistics Agency (BPS) noted that Indonesia’s trade balance in August 2020 was a surplus of USD 2.33 billion. This surplus is much bigger than the surplus in August 2019 which amounted to USD 92.6 million. Suhariyanto added that last month’s trade balance surplus was driven by higher export values compared to import values. The export value in August 2020 was recorded at USD 13.07 billion. Meanwhile, the import value was USD 10.74 billion. In detail, the export value in August 2020 decreased by 4.62% MoM. The decline in export value was driven by a decline in the export value of both oil and gas (oil and gas) commodities by 9.94% MoM and non-oil and gas exports which fell 4.35% MoM. What made non-oil and gas exports decreased was due to a decrease in several commodities such as precious metals, jewelry and gems, vegetable fats and oils, mineral fuels, iron and steel, as well as footwear. On the import side, the value of imports, although lower than exports, recorded an increase of 2.65% MoM. This increase in imports was driven by an increase in non-oil and gas imports by 3.01% MoM even though oil and gas imports fell. However, even though the import value is increasing on a monthly basis, this import value is still smaller than the import value in August 2019. (Cash)
Positive Sentiment on August Trade Balance. Indonesia’s trade balance in August 2020 recorded a surplus again, amounting to USD 2.33 billion, bringing positive sentiment for Indonesia’s external resilience. In the future, Indonesia’s trade balance will still have a potential for a surplus, as the value of imports will be smaller than the value of exports. Meanwhile, future trade performance will also have an impact from the Jakarta PSBB, although the effect will not be as big as in the previous PSBB period. In the short term, investors can take advantage of the momentum of the FR0086 and FR0087 movements.