Indonesia Market Today - 17 December 2020

Thursday (17/12/2020). The combination of the decline in DJIA by -0.25% and the fall of several commodity prices, such as: Coal -0.36% & Nickel -1.49% has the potential to hold back the JCI strengthening in today`s trading.

Furthermore, in the midst of the sharp strengthening of the JCI, a day before the enactment of a measured or strict PSBB began to take casualties, one of which was Bali where hundreds of thousands of tickets were canceled worth hundreds of billions of rupiah * (impacting airline issuers) *, which of course followed cancellation of thousands of hotel room bookings * (impact on property issuers) * and has an impact on the economy of Bali as a whole. That`s just Bali, what about the fate of other local tourist destinations? Not to mention the impact on the economy due to the implementation of Rapid Antigen checks on people who want to enter DKI Jakarta or Jakarta people who want to return after the holidays. Not to mention the impact of the prohibition of organizing crowds towards the end of the year because usually at that time there is a harvest of income for airlines, travel agents, tour buses, hotels, restaurants and other local tourist attractions.

Refund for Rp. 317 Billion Tickets after Mandatory Antigen Swab to Bali

The Association of Indonesian Hotels and Restaurants (PHRI) revealed * that the number of ticket refund transactions for tourists visiting Bali reached IDR 317 billion *. That number comes from 133 thousand plane tickets. Apart from having an impact on tourism business actors, this policy also affects the economy of Bali. * Unmitigated, the estimated impact on Bali`s economy reaches IDR967 billion *.

Entering Jakarta Mandatory Rapid Antigen starting December 18, 2020

The DKI Jakarta Transportation Agency has established a policy regarding the mobility of people into and out of the DKI Jakarta area with an obligation to include the results of the PCR or rapid antigen test. From 18 December 2020 to 8 January 2021, all of them must include a rapid antigen test. So be it air transportation, sea transportation and bus terminals.

B. INDONESIA CORPORATE NEWS

1. PT United Tractors (UNTR)

The company allocates capex in 2021 of US $ 290 million, with details of about 50% of the capex will be allocated to the mining contractor business segment for replacing obsolete heavy equipment. Then, around 40% or around US $ 120 million is for the gold mining segment for processing plant development and operation improvement, while the remaining 10% is for regular capex for maintenance.

2. PT Vale Indonesia (INCO)

The company allocates a capex of US $ 135 million in 2021 or greater than the 2020 allocation of around US $ 120 million. This is in line with the realization of the furnace 4 redevelopment project, which was delayed this year.

3. PT Tower Bersama Infrastructure (TBIG)

The company has budgeted a capital expenditure of IDR 2 trillion in 2021 where the capex will be used for the construction of new telecommunication towers and tower collocation.

4. PT Harum Energy (HRUM)

The company increased its share ownership in Nickel Mines Ltd after buying 39 million shares worth 36.74 million Australian dollars or the equivalent of IDR 393 billion (exchange rate of IDR 10,697) where the purchase transaction of Nickel Mines Ltd shares was carried out on 15 December 2020.

5. PT Totalindo Eka Persada (TOPS)

The company is aiming for a new contract value (NKB) of up to IDR 1.5 trillion in 2021. This target is up 22.18% from the realization of the NKB booked by the company at the end of 2020 worth IDR 993 billion. This realization reflects the achievement of 82.77% of the revised target value for new contracts this year of IDR 1.2 trillion.

C. MARKET STATISTICS

DJIA -44.77 -0.15% 30154
*NASDAQ +63.13 +0.50% 12658*
*GOLD +10.2 +0.55% 1867.60*
*OIL +0.29 +0.61% 47.84*
COAL (Jan`21/Newcastle) -0.30 -0.36% 84.20
NICKEL -262.5 -1.49% 17382.50
*TIN +275 +1.40% 19910*
*CPO (Jan`21) +4 +0.11% 3592*
*EIDO +0.46 +1.95% 24.04*
*TLK 24.97 (3527) vs 3610 (TLKM)*
*US 10yr -0.0300 -0.33% 0.9200*
*INDO 10yr -0.0362 -0.57% 6.2909*
*INDO CDS (5 yrs) -0.529 -0.769% 68.303*
*IDR (Spot) 14,125*

*IDX Range : 6,071 - 6,163*
*USD/IDR Range: 14,070 - 14,200*

D. STOCK WATCHLIST

TLKM, PURA, PGAS, ANTM, ASII, PURA, TINS, SMGR, MDKA, CPIN, INCO

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