The increase of UST Yield impacts the financial sector of emerging market countries, especially Indonesia. This caused global market participants to invest in UST, moving their capital from developing countries.
Indonesia’s Balance of Payments (BOP) in 1Q21 booked a surplus of USD4.1 billion, higher than the previous quarter which recorded USD0.2 billion deficits.
The incoming bids of some Government Securities (SBN) towards the end of April 2021 indicated recovery in domestic bonds market. In the Government Bond Securities (SUN) Auction on last Tuesday (04/27), the government successfully booked incoming bid of IDR52.7 trillion.
The result of Bank Indonesia Board of Governors’ Meeting on April 19-20 is to maintain BI 7-DRRR benchmark interest rate for April 2021 at 3.5%. It has been maintained at that level since February 2021, after BI cut the benchmark rate by 25 bps BI also kept deposit facility and lending facility rates at 2.75% and 4.25%
respectively. Other than to maintain the stability of rupiah exchange rate, BI’s decision was influenced by March 2021 inflation which was held at 0.08% MoM or 1.37% YoY. Low BI-7DRRR will give room for a decline in the banking prime lending rate (SBDK). It is expected that increased loan disbursement will boost business activities, which will positively impact the domestic economy.
Statistics Indonesia (BPS) recorded Indonesia trade balance in March at a surplus of USD 1.56 billion. This is higher than the surplus booked in the same period last year at USD 0.71 billion. Indonesia’s export in March 2021 was USD 18.35 billion, growing 30.47% YoY or 20.31% MoM. Exports in the agriculture, industrial, and mining sectors also increased. Meanwhile, import in the same period was recorded at USD 16.79 billion or grew 25.73% YoY. The import was boosted by the increase in consumer goods, auxiliary goods, and capital goods. Both the export and import are in line with the increase in manufacturing index that reflects the increasingly expansive performance of the domestic processing industry.
IHS Markit recorded Indonesia Manufacturing PMI in March at 53.2. This number is significantly higher than the previous month at 50.9, boosted by new demands and output.
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BBRI on a consolidated basis, recorded total loan amount of IDR922.9 trillion or grew 5.2% in the 1H20 period. This growth is in line with BBRI’s efforts, which is currently focused on restructuring loans.
Although BBCA loans decreased by 0.6% YoY to IDR 581.8 trillion, corporate segment still grew 8.6% YoY to IDR 251.9 trillion. BBCA also booked IDR 20 trillion in net income, or down by 4.2% YoY amid the rising cost of reserves.
