On the list of major companies that confirmed dividend payouts in the coming dividend season the most attractive one is Indo Tambangraya Megah with a dividend yield of 6.22 percent. For short-term investors a high dividend yield is very attractive (while long-term investors would prefer to take a careful look at the fundamentals of the company as well as related sector).

Traditionally the March-April dividend season gives rise to capital outflows from Indonesia as the listed companies will need to disburse part of the dividend to foreign shareholders. David Samual, economist at Bank Central Asia (BCA), said there is a clear link between dividend payouts and the tendency of Indonesia's current account deficit to widen in the second quarter of the year. In 2016, however, this phenomenon was not visible due to asset repatriations in the context of Indonesia's tax amnesty program. These capital inflows managed to support the rupiah back then.

Bhima Yudhistira, economist at the Institute for Development and Finance (Indef), detects the same phenomenon: most foreign investors who receive the dividend in rupiah will exchange it into US dollars thus putting pressure on the rupiah in the dividend season. Yudhistira expects the rupiah to weaken to about IDR 13,800 - 13,980 per US dollar later this year.

Confirmed Dividend Payouts March-April 2018:

Company   Dividend
Payment Date
Indo Tambangraya Megah
  1,840.00    6.22 20 April 2018
Wahana Ottomitra Multiartha     15.50    5.58 18 April 2018
Bank Pembangunan Daerah
Jawa Barat dan Banten
    90.30    4.34 26 March 2018
Bank Rakyat Indonesia    106.75    2.97 25 April 2018
Bank Negara Indonesia    255.56    2.78 20 April 2018
Bank Mega     93.34    2.67 27 March 2018
Bank Mandiri    199.03    2.49 20 April 2018
Wijaya Karya Beton     12.13    2.33 20 April 2018
Bank Danamon Indonesia    134.44    2.13 18 April 2018
Bank Tabungan Negara     57.18    1.56 24 April 2018
Semen Baturaja      3.69    0.10 29 March 2018

Source: Kontan