Monthly Economic Review

BOTTOM LINE: Indonesia technically exit economic recession after the GDP registering a 7.07% annual growth in Q2/2021, following four consecutive contractions in the past four quarters. On demand side, all components of GDP  grew positively, and the government consumption charted the highest growth. The growth data did not significantly affect rupiah, which continued weakening in…

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Monday Briefing

Economy: Bank Indonesia slashed its 2021 economic growth forecast range for Indonesia to between 3.5-4.3 percent from 4.1-5.1 percent predicted previously. The lower prediction resulted from complicated developments of the COVID-19 pandemic, particularly the appearance of the Delta variant. Nevertheless, Indonesia’s economic growth potential remained quite good until the second quarter, fueled by an increase…

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Monday Briefing

Economy: S&P Global Ratings lowered economic forecast for Indonesia for 2021 to 3.4% from 4.4% earlier, while 2022 growth will be higher on base effects at 5.6% from 5.2% earlier. A Covid-19 resurgence is exacerbating downside pressures for Indonesia’s economy and credit conditions, A delayed economic recovery will drag on revenue for banks, most corporate…

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Friday Briefing

Economy: Bank Indonesia (BI) revises down its forecast for the country’s economic growth this year from 4.1-5.1 percent to 3.8 percent citing the enforcement of emergency public activity restrictions (PPKM). “If the emergency PPKM lasts for one month and lowers COVID-19 cases, well, then the economic growth will decline to around 3.8 percent,” BI Governor…

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Monday Briefing

Economy: The government has prepared several strategies to sustain a national economic recovery. The first is continuing with the national economic recovery (PEN) program as the main instrument for economic growth in 2021. The second is accelerating the free COVID-19 vaccination program, which started in January 2021, and aims to cover 181.5 million of the…

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Monthly Economic Review

BOTTOM LINE: Major economic indicators did not experience significant changes over April to mid of May 2021. Inflationary pressures still manageable as indicated by low inflation, rupiah was moving in the range of Rp14,300 to Rp14,500 against the US dollar, while central bank kept its monetary policy rates at 3.5%. On quarterly basis, the contraction…

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Friday Briefing

Economy: The economic authority confident that Indonesian economy to print a nearly seven-percent growth in the second quarter of 2021 thanks to an upward trend in the realization of foreign direct investments and consumer confidence index. “Our economic growth rate indicates a positive trend. It is expected to reach seven percent,” Coordinating Minister for Economy…

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Monthly Economic Review

BOTTOM LINE: Amidst the continued low inflationary pressures, rupiah is still on a weakening trend over three weeks of April. Capital markets is also in a worsening performance as signified by the drop in Indonesian stock price composite index and bond price index. Yields of Indonesian government bonds has been increasing, reflects higher risks perception…

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