Indonesia Market Today - 18 December 2020

A. INDONESIA MORNING MARKET REVIEW

Friday (18/12/2020). The combination of strengthening DJIA by + 0.49% is in line with the expectation that the new economic stimulus package will be approved and the FFR will be maintained low until the end of 2021, an increase in EIDO + 0.21% and an increase in the prices of several commodities such as: Oil + 1.27%, Gold + 1.19%, Nickel + 0.63% & CPO + 0.50% has the potential to push the JCI limited up this Friday amidst the implementation of a measured PSBB and the lowering of Indonesia`s economic growth projection by the World Bank.

World Bank Revised Economic Projection for Indonesia to -2.2%

The World Bank has revised down its projection for Indonesia`s economic growth in 2020 to -2.2% * from the previous -1.6%. The projection is worse than before due to the continued enforcement of the PSBB along with the increasing number of Covid-19 cases. However, growth is expected to pick up again in 2021 by 4.4% if mobility restrictions are slowly relaxed and supported by the coronavirus vaccine. Meanwhile, * for predictions with a bad scenario (downside scenario), Indonesia`s economic growth could decline to 3.1% in 2021 and 3.8% in 2022 *.

B. INDONESIA MORNING MARKET REVIEW

1. PT Indika Energy (INDY)

The company estimates a capex of US $ 130 million in 2021. Meanwhile, in 2020 the company allocates a capex of US $ 100 million (revised from the previous US $ 146 million). Until the third quarter of 2020, INDY had absorbed a capex of US $ 66.4 million, or decreased -51.99% compared to the same period in 2019 of US $ 138.3 million. On the other hand, INDY has an initial budget for coal production volume in 2021 of 30 million tons for PT Kideco Jaya Agung, and 1.4 million tons for PT Multi Tambangjaya Utama (MUTU). Meanwhile, as of Q3/2020, NDY produced 23.9 million tonnes of coal through Kideco and 1.1 million tonnes of MUTU production or for Kideco fell 6.6% and MUTU fell 7%.

2. PT Rukun Raharja (RAJA)

The company is preparing a capex of US $ 100 million in 2021 for the completion of the construction and acquisition plan, namely the purchase of a company engaged in the supply of clean water, namely PT Bravo Delta Persada which is claimed to have a water capacity of up to 100 Liters Per Second (LPS). this action enters the finalization stage. In other sectors, namely gas, the company completed the acquisition of PT Heksa Energy Mitraniaga, which is currently adding to the LPG Discharge infrastructure development located in Rembang, Central Java with a capacity of up to 2,000 tons per day. The construction is targeted for completion in the 3rd quarter of 2121. Meanwhile, until the third quarter of 2020, the company posted revenues of US $ 74.1 million, down 17.39% compared to the same period in 2019 of US $ 89.7 million. Furthermore, until the 3rd quarter of 2020, the company posted a net profit of down to 96.42% to US $ 0.2 million, from the previous US $ 5.6 million in 2019.

3. PT Dewata Freight International (DEAL)

The company targets revenues of Rp 367 billion in 2021. Meanwhile, in 2021, the company will allocate capital expenditures of Rp 20 billion - Rp 50 billion.

4. PT Soechi Lines (SOCI)

Fitch Ratings downgraded SOCI`s USD200 million Senior Unsecured Bond due in 2023 to a B- * rating from B with a stable outlook. The lower Bond rating in line with the results of the Tender Offer and Request for Approval to amend the terms of the indenture on the Bonds, which process ended on December 8, 2020.

5. PT Kapuas Prima Coal (ZINC)

Funds for principal repayment and payment of Bond I Kapuas Prima Coal Year 2018 CE 8 Series and Series C Principal Repayment are available in Zinc bank account with details of this bond amounting to IDR 42.4 billion and Bond interest (gross) of IDR 1.75 billion with an interest rate for the securities code ZINC01C of 14.25%, ZINC01C of 16.3% and ZINC01E of 16.8%.

C. MARKET STATISTICS

*DJIA +148.8 +0.49% 30303*
*NASDAQ +106.5 +0.84% 12764*
*GOLD +22.3 +1.19% 1889.90*
*OIL +0.61 +1.27% 48.45*
COAL (Jan`21/Newcastle) -0.15 -0.18% 84.05
*NICKEL +110 +0.63% 17492.50*
*TIN -12.5 -0.06% 19897.50*
*CPO (Jan`21) +18 +0.50% 3608*
*EIDO +0.05 +0.21% 24.09*
*TLK 24.82 (3501) vs 3540 (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 : 6,062 - 6,154*
*USD/IDR Range: 14,040 - 14,180*

D. STOCK WATCHLIST

PURA, ADHI, CTRA, AKRA, MAPI, WIKA, SMGR, JSMR, PTPP, BSDE.

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