2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

IDR Tn 80 60 40 20 0 -20 -40 -60 -80 -100 -120 -140 Jan-19 Domestic Capital Market Performance Amid Global Challenges Despite the emergence of the Omicron variant, investors are still optimistic for a faster economic recovery and countries are still boosting their vaccination rate. 10%0 Entering the end of 2021, global indices recorded a steady improvement although few countries still face challenges to recover. Stock Index Performance as of 3 December 2021 (compared to 31 Dec'20) JCI's performance continues to recover and has returned to its pre- pandemic level, reflecting positive sentiments from the market. Comp Bond Index Comp Stock Index (rhs) 340 7000 TURK EU 16.26% 320 6500 US WORLD 12.98% 12.06% 6000 300 THAI 9.58% INDO 9.36% 6,538.51 5500 SIN 280 9.08% CHIN S KOR 3.87% 3.30% 5000 260 4500 JPN 2.13% 240 PHIL -1.18% 4000 MAL -7.71% BRAZ -11.72% 220 3500 HKN-12.72% (% YTD) 200 3000 -15% -10% -5% 0% 5% 10% 15% 20% Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 As the Omicron variant emerges, non-resident portfolios of government bonds & equity recorded a total net sell of YTD IDR24Tn in Dec 2021. However, the equity market marked a YTD net buy of IDR35.48 Tn as of Dec 3rd 2021. Source: Bloomberg and Ministry of Finance Gov't Debt Securities Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 ■ Equity As of 3 December, 2021 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 8 -4.02 7 LO 5 Jan-19 6 9 Yield (%) 10 5-yr Yield Mar-19 May-19 Jul-19 Sep-19 Government bond yields remain competitive with a slight increase, followed by stable rupiah as risk premium is maintained. 20-yr Yield IDR (rhs) Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 10-yr Yield USD/IDR 18,000 14,000 10,000 Jul-21 Sep-21 Nov-21 6,000 2,000 173
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