Indonesia: Jakarta Stock Exchange Composite Index, Kawasan Industri Jababeka, Solusi Sinergi Digital Tbk PT and more

• Hiding spots that are coming under pressure –  Indonesia’s JKSE just cracked key support that makes the USD/IDR one of the last holdouts to see a big USD move.
• USD/IDR bull triangle breakout unfolding with risk of a big USD short squeeze.
• USD/MYR break above 4.50 would increase odds of devaluation and a more painful USD move in Asian FX. A huge pivot level to watch.

Jababeka has delivered acceptable FY 2021 results, with slight revenue and earnings increases. The financial risk profile improved slightly, but remained weak with elevated leverage and thin coverage ratios. Liquidity is adequate for the next 12 months. The strong FY 2021 and Q1/22 marketing sales will likely support decent growth in revenue and earnings from the Real Estate pillar.

However, the key concern remains refinancing risk for the USD 300 mn 6.5 2023 notes that will mature in October. The company announced in late July 2021 that it plans to buy back the 2023 notes, with the intention of issuing USD 350 mn in new notes to fund this transaction. No further details were provided, and Jababeka has not released an update in this regard.

• 4Q21 performance lifted by year-end sales festivities: 4Q21 revenue grew 5.9% QoQ to IDR98.1bn, primarily due to a 7.2x QoQ surge in advertising revenue as eCommerce platforms spent big on OOH media during year-end sales promotions.