Government Bond Highlights
In the government bond (Surat Utang Negara, “SUN”) auction dated 03/20/2018, the government absorbed IDR8.9 trillion from the total incoming bid of IDR13.06 trillion. The amount absorbed was higher than the
indicative target of IDR8.0 trillion. SUN with two-year tenor, namely PBS016 obtained a highest amount of bid worth IDR4.98 trillion. Indonesia Composite Bond Index (ICBI) closed lower by 0.22% into 242.4 in last week.
The global market moved mixed in last week because Trump signed on memorandum imposing tariffs on up to USD60 billion for products imported from China. Indeed, he stated, “This is the first of many trade actions”.
Trump’s decision was responded by China with imposing retaliatory tariffs on 128 products imported from the U.S.
From domestic outlook, Indonesia’s Finance Minister Sri Mulyani dismissed concerns on government debt. According to her, government debt is not worrisome as the government is prudent in managing its debt. She added that it should not cause hysteria or excessive worries because the government continuously addresses public concerns regarding to its debt.
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