2017 Issuance to Stay Bright Amid High Refinancing Need

Total IDR corporate bonds issuance this year reached a record high of IDR112.8trn, up 80% from last year issuance. Primary issuance though remains less diversified as banking and multifinance sectors dominated the issuance. Banking and multifnance firms accounted for 46% and 32% of total issuance this year. Other sectors like transportation and telecommunication issued only IDR6trn and IDR5.2trn, or less than 6% of the total issuance. Based on the issuer, Eximbank Indonesia (EXIM, idAAA/Sta) was the biggest issuer this year with total issuance of IDR14.8trn and followed by Bank Rakyat Indonesia, Tbk (BBRI:IJ, idAAA/Sta) with IDR13.6trn issuance in total.

Chandra Asri’s Net Profit Growth 32%

Intikeramik Alamasri Entered the Hotel Business

Acset Indonusa’s Revenue Growth 63% in 1H18

Pertamina’s Oil and Gas Production Rose by 32% YoY

1H18 Excise Tax Revenue Realization Reaches 32% of the Target

Going into 2017, we expect corporate issuance to remain bright next year mainly driven by high refinancing need. Total maturing bonds next year reach a whooping IDR78trn. As such, we expect total corporate issuance would reach at minimum IDR100trn next year, with Pemeringkat Efek Indonesia (Pefindo) predicts IDR119.9trn issuance next year.  On the demand side, we believe the state owned infrastructure bonds to receive strong demand as the non-bank financial industry (NBFI) would fulfill minimum government bond ownership through SOE infrastructure bonds in bid to search for higher yield.

United Tractors’s Internal Fund Capex worth USD1Bn

AP I and SMI’s Final Coupon Rate Set Closer to Upper End of Guidance

Indonesia Primary Activities are Picking Up

Bond Market Mixed amidst Bank Indonesia Meeting

Indonesia Government Sold IDR6.32Trn at Sukuk Auction