Indonesia Market Today - 13 October 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (13/10/2020). Starting today, Tuesday, for the next 1 week, the issue that will dominate domestic conditions is that there will be demonstrations by various elements of society regarding the rejection of the Job Creation Law * which is currently unclear which version is used because until now it has been there are four drafts of the Ciptaker Law. Among them are 900 pages, 1028 pages, 1052 pages, and 1035 pages and * the peak is estimated to be 20 October 2020 * while commemorating 1 year of the inauguration of the current government and on the same date the government also expressed its desire to issue the omnibus law of the Ciptaker Law. On the other hand, external sentiment is actually quite conducive and positive following the return of the DJIA Index by + 0.88%, driven by the strengthening of technology sector stocks amid rising prices for several commodities such as: CPO, Nickel and Tin.

B. INDONESIA CORPORATE NEWS

1. PT AKR Corporindo (AKRA)

The government has made the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Java, a Special Economic Zone (KEK). JIIPE is the first integrated area in Indonesia with a total area of 3,000 ha, consisting of industrial estates, multipurpose ports, commercial and residential areas. The JIIPE Industrial Estate is also integrated with a port with a depth of -16 meters below sea level, so that large vessels with a capacity of 100,000 DWT (dead weight tonnage) can load and unload at JIIPE Port. Meanwhile, PT Freeport Indonesia is building a refining facility or smelter in the JIIPE industrial area. Apart from Freeport Indonesia, * PT Waskita Beton Precast (WSBP) * and PT Pangan Sari Utama Food Distribution have already entered JIIPE Gresik. This year AKR Corporindo targets land sales in JIIPE to reach 30 hectares. This target could be increased according to the request of the prospective buyer.

2. PT Intiland Development (DILD)

The company is targeting sales of property units (marketing sales) worth Rp. 600 billion by the end of 2020 through online sales activities by holding a sales program called Intiland Story Fabulous Friday. In this program, the company offers 17 projects owned by the company located in Jakarta, Tangerang and Surabaya in the form of houses, apartments, offices and warehouses. Under this program, DILD will sell various properties in the price range of Rp. 186 million to Rp. 18 billion per unit.

3. PT Adhi Karya (ADHI)

The company will issue the Adhi Karya III Sustainable Bond Phase I Year 2020 with the funds to be achieved worth IDR 2 trillion. The bonds issuance is part of the Adhi Karya Sustainable Bonds III Public Offering with a target fund of IDR 5 trillion. 50% of the funds raised from the issuance of these bonds will be used for capital expenditures in the form of fixed assets and participation in infrastructure investment projects, both with the government and the private sector. While 31.25% will be used to finance maturing debts or refinancing and the remaining 18.75% will be used for working capital for LRT projects and other infrastructure projects.

C. MARKET STATISTICS

*DJIA +250.6 +0.88% 28837*
*NASDAQ +296.3 +2.56% 11876*
GOLD -8.7 -0.45% 1927.3
OIL -1.05 -2.59% 39.49
COAL (Okt/Newcastle) -0.55 -0.96% 56.85
*NICKEL +7.5 +0.05% 15195*
*TIN +5 +0.03% 18255*
*CPO (Dec`) +84 +2.88% 2998!!*
*EIDO +0.01 +0.05% 18.37*
*TLK 18.70 (2750) vs 2730 (TLKM)*
US 10yr +0.002 +0.26% 0.7770
INDO 10yr -0.0219 -0.31% 7.0138
*INDO CDS (5yr) -0.761 -0.816% 92.5*
IDR (Spot) 14,700

*IDX Range : 5,055 - 5,140*
*USD/IDR Range: 14,650 - 14,780*

D. STOCK WATCHLIST

INCO, ANTM, WSKT, SMRA, GGRM, BBRI, CTRA, TINS, PTPP, BBNI.

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