Government Securities Increase Throughout 2017

By : Wiyanto And Aldo Bella Putra | Friday, January 12 2018 - 19:00 IWST

Gedung Otoritas Jasa Keuangan (OJK) Jakarta
Gedung Otoritas Jasa Keuangan (OJK) Jakarta

INDUSTRY.co.id -Jakarta - The development of the capital market, especially in the debt securities market during 2017, showed a very positive upward trend.

Chief Executive Officer of the Capital Market OJK Hoesen at Main Hall of Indonesia Stock Exchange Gallery said this is evident from the increase in Indonesia Composite Bond Index (ICBI) by 34.53 basis points (bps) during 2017 period from 208.45 (Dec 2016) to 242 , 98 (Dec 2017).

"Driven by the increasingly conducive investment climate after the rating increase by Standard and Poor's and Fitch Rating and the decline in risk perception on investment in the bond market pushed nonresident capital inflows into the market Government Securities recorded an increase from Rp107.3 trillion (2016) to Rp170, 3 trillion (2017) and lower yields," he said in Jakarta on Friday (01/12/2010).

According to him, the average yield on government bonds has decreased by 140.97 bps (or 1.41%) from 8.10% (2016) to 6.69% (2017). Similarly, average rating of corporate bond A rating also fell 165.15 bps (or 1.65%) from 10.72% (2016) to 9.07% (2017).

The increased bond market performance in 2017 was also reflected in the daily average increase in bond transaction value of 5.89% from Rp15.77 trillion (2016) to Rp16.70 trillion (2017).

The increased transaction liquidity also contributes to increased repo transaction activity. Recorded total repo transactions during 2017 rose by Rp42.04 trillion from Rp263.17 trillion (2016) to Rp305.21 trillion (2017). The daily average value of repo transactions also increased from Rp1, 10 trillion to Rp1, 28 trillion.

"Market standard referred to is a further guideline made and agreed upon by members of Himdasun on the provisions of POJK 09 / POJK.04 / 2015 which requires the use of Global Master Repurchase Agreement (GMRA Indonesia) documents in the execution of repo or reverse repo transactions conducted by the Service Institution Finance," he said.

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