Bisnis.com, JAKARTA - PT Pemeringkat Efek Indonesia (Pefindo) sees that the issuance of debt securities from financial institutions has not yet recovered throughout 2021, as a result of the abundance of funding facilities from banks. Pefindo's Financial Services Rating Division (Fi Ratings) analyst Danan Dito explained that the condition of the industry, which consists of private finance companies, special financing institutions, and state-owned finance companies, is actually still positive. This is reflected in their rating and outlook, which was able to withstand the decline, due to financial performance which has recovered from the 'Volume I' pandemic throughout 2020 and the spike in the 'Volume II' pandemic which took place in the second quarter of 2021. However, the lack of realization of the issuance of new debt securities as seen from the potential for refinancing old bonds or sukuk maturing, indicates that funding through the capital market is still not a priority. "Companies that are used to entering the [bond/sukuk] market usually also have unused banking facilities. The situation is still volatile and appetite is still short-term, this has made the stretch to enter the market not yet started. Still using the existing facilities, " he said in a virtual discussion, Monday (10/18/2021). Throughout 2021, Pefindo noted that there will be IDR 20 trillion - IDR 25 trillion debt securities from a family of financial institutions that are due. However, their possibility of re-entering the market regarding refinancing this year is still dynamic. Pefindo estimates that the funding strategy through the issuance of new debt securities will be focused on 2022. Meanwhile, for state-owned financing institutions or SOEs, most of them have received positive sentiment from the funding side due to strategies from the government, for example through the provision of state capital from the APBN, or corporate actions such as the merger of Civil National Capital (PMN) to Ultra Micro Holding. "In addition, for short-term focus, bank loans are faster and more flexible in terms of administration, yes. As far as I know this is often a consideration for publishers. In the end, it is divided, there are publishers who choose to be verified [funding] through the capital market , there is also a delay," he explained. For your information, until the first semester of 2021, the portion of issuance from finance reached Rp. 8.58 trillion, the financing industry was Rp. 7.11 trillion, while special financing institutions were Rp. 2 trillion. Most recently, during the third quarter of 2021, the portion of issuance from finance increased by Rp. 5.62 trillion, the financing industry increased by Rp. 2 trillion, while special financing institutions increased by Rp. 1.3 trillion. "Sentiment for finance in terms of increasing automotive sales and commodity prices which will later be related to heavy equipment does exist, but from there it doesn't necessarily go into the receivables of the actors. So the funding needs for this period may be slightly delayed, especially because of the spike in Covid-19 cases. 19 yesterday," he added. Also present, Head of Corporate Rating Division of the Indonesian Securities Rating Agency (Pefindo) Niken Indriarsih revealed that the total debt bond issuance mandates received by Pefindo in the fourth quarter of 2021 reached Rp28 trillion. In particular, the mandate of the financing family, 3 multi-finance companies intend to issue bonds worth IDR 5.8 trillion. Meanwhile, one financial institution is interested in issuing IDR 2 trillion and a special financial institution intends to issue IDR 1.3 trillion.