Indonesia Primary Remains Light Amid US Rate Hike Speculation

We saw issuers continued to rush into primary market with two new names offering the bonds this week namely: Waskita Karya Tbk (WSKT IJ,idA-/Sta) and Medco Energi Internasional Tbk (MEDC IJ, idA+/Neg). Waskita Karya offering 5y bond of IDR900bn at 8.5% to finance its construction business and and projects in its subsidiaries. Meanwhile, Medco Energi is back with IDR1.25trn bond offering which split into two tenures; 3y and 5y priced at 10.8% and 11.3% respectively.

Medco Energi Released IDR1.3Trn Bonds

Selling Abates on Improving Indonesia Market Sentiments

HK Offers IDR1Trn Bond Amidst New NBFI’s Regulation

Third-Party Funds Banking Only Grew 6.3%

China’s Economy Strengthen

As for Medco Energi, the company is planning to acquire new company that is expected to strengthen its cash flow going forward. Previously, the company surprises public with USD2.6bn of Newmont Nusa Tenggara (NTT). Elsewhere, two more SOE names have announced to issue new bonds this year, they are; Hutama Karya (HK, idA-/Sta) and Angkasa Pura I (idAAA/Sta) targets to release IDR1trn and 4 trn bonds respectively. HK expects to use the proceed to finance Trans Sumatera Toll road. The company still have IDR615bn of outstanding bonds they are; IDR290bn of series B due on 28 June 2018 and IDR325bn of series C due on 28 June 2020.

Selamat Sempurna Acquire 44% Stake in Distributor’s Share

SMAR’s Outlook Revised to Negative

Mixed Outlook Revision This Week

Three Factors Encouraging The Strengthening Rupiah Next Year

Economic Pressures Raise Budget Spending 2019