Fixed InSight

Today’s highlights:

Trump abruptly canceled planned strikes on Iran, claiming a peace deal was near with a memorandum potentially reopening the Strait of Hormuz possible as soon as this weekend — though Iran denied any final agreement, with key issues like frozen assets and uranium disposal still unresolved. Brent fell 1.8% and WTI dropped nearly 3% to ~USD85/bbl on improved sentiment. Separately, Danantara Investment Management’s inaugural USD bond offering drew over USD4.6bn in orders — more than 4x its USD1bn target — with final yields tightened to 5.35% (5yr) and 5.95% (10yr), reflecting continued foreign investor appetite for Indonesian credit despite IDR weakness.

From the bond market, FR 56, 37, 90, and 59 are currently the cheapest based on our yield curve model. Last national business day, the dollar index was closed at 99.86 (-0.1%). Rupiah was depreciated by 0.2% at USDIDR at 17,993. The 10yr UST yield decreased by -9.1bps to 4.46% and 10yr INDOGBR increased by +10.2bps to 7.45% – the spread between the two was at 299bps.

Economy: Trump suspended planned strikes on Iran, claiming peace deal was near

US President Donald Trump abruptly canceled a planned third day of military strikes against Iran, reversing earlier threats of escalation and reiterating that a peace agreement was close. Trump said a memorandum of understanding could be signed as soon as this weekend, potentially reopening the Strait of Hormuz and including Iranian commitments not to pursue nuclear weapons. He also claimed Iran’s supreme leader had agreed to the framework, although Iranian officials denied that any final agreement had been approved. Key sticking points remained unresolved, including the release of frozen Iranian assets, the disposal of Iran’s highly enriched uranium stockpile, and demands for a ceasefire in Lebanon. Following Trump’s remarks, Brent crude fell 1.8% and WTI dropped nearly 3% toward USD85/bbl, reflecting improved market expectations that disruptions to global energy flows could eventually ease. Source: Bloomberg

Economy: Danantara’s inaugural USD bond offering attracted strong investor demand

Indonesia’s sovereign wealth fund unit, Danantara Investment Management, received more than USD4.6bn in orders for its inaugural USD-denominated bond issuance, exceeding its USD1bn fundraising target by more than four times. The offering consisted of USD500mn each in 5yr and 10yr bonds, with final yields tightened to 5.35% and 5.95%, respectively, from initial guidance of around 5.70% and 6.30%. The strong demand came despite ongoing concerns over Indonesia’s economic outlook and IDR weakness, suggesting continued foreign investor appetite for Indonesian credit. Proceeds from the issuance, conducted under a USD5bn GMTN program, will be used for general corporate purposes, including investments and debt refinancing. The bonds are expected to receive investment-grade ratings of Baa2 from Moody’s and BBB from S&P and Fitch. Source: Reuters/Kontan

Fixed Income: BMTR’s near-term bond and sukuk maturity to be refinanced via newly issued Bond V and Sukuk V

PT Global Mediacom Tbk (BMTR) announced two debt instruments maturing on 14 Sep’26: Shelf Registered Bond II Phase II Year 2021 Serie C (rated idA+) amounting to IDR10.6bn, and Shelf Registered Sukuk II Phase II Year 2021 Serie C (rated idA+/sy) amounting to IDR50.0mn. The Company plans to repay the maturing debts using proceeds from its issued Shelf Registered Bond V Phase II of IDR500bn and Shelf Registered Sukuk V Phase II of IDR300bn. Source: Pefindo

Fixed Income: Pefindo affirmed WIFI’s idA rating and assigned idA to proposed IDR2.5tn bond and sukuk for capex

Pefindo reaffirmed its idA general obligation rating with a stable outlook on PT Solusi Sinergi Digital Tbk (WIFI), and assigned idA to its proposed Shelf Registered Bond of IDR2.5tn and idA/sy to its proposed Shelf Registered Sukuk of IDR2.5tn, valid through 1 Apr’27, with proceeds to be used for capex. The rating was anchored by the benefits of good quality infrastructure, high profit margin, and potential exponential cash inflow growth from business expansion, while project execution risk given the Company’s relatively new operating stage, moderate financial profile, and regulatory risks related to network expansion remained the primary constraints. An upgrade could materialize if WIFI successfully executes its FWA and FTTH expansion on schedule with strong subscriber take-up resulting in an improving financial profile, while a downgrade could be triggered by performance significantly below target or more aggressive financing without a strengthened business position. WIFI, also known as “Surge”, is a digital service company offering FTTH, FWA, and digital advertising, majority-owned by PT Investasi Sukses Bersama at 54.42% as of end-2025. Source: Pefindo

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