The Central Statistics Agency recorded that Indonesia’s economy in 1Q21 grew negatively by 0.96% compared to the previous quarter, or grew negatively by 0.74% on an annual basis. This figure is not much different from the survey of market players which contracted 1.09% on a quarterly basis, or an annualized contraction of 0.87% YoY. These results also indicate that Indonesia is still trapped in an economic recession. Based on data from NH Korindo Sekuritas, the 10-year benchmark SUN FR0087 posted a yield of 6.43% yesterday.

Panorama Sentrawisata Pay Off IDR 100 Billion Debt. Issuer travel agency, Panorama Sentrawisata Tbk (PANR) has paid off the medium term notes (MTN) II Series B issued on May 2, 2018 with a principal amount of IDR 100 billion. The company has paid off the bonds on May 2, 2021. The MTN II Series B interest rate is 9.375%. On March 26, 2021, the company has bought back part of MTN II amounting to IDR 50 billion. Then on May 2, 2021, the company paid off MTN II of IDR 50 billion. (Beritasatu)

Household Consumption Sources of Economic Contraction. Indonesia’s economic growth was still negative in 1Q21. The Central Statistics Agency (BPS) noted that the economy in the first three months of this year was minus 0.74% YoY. Meanwhile, the source of the contraction in 1Q21 was household consumption, which was minus 2.23% YoY and contributed to the contraction of GDP by 2.12%. Apart from household consumption, the economic contraction was also contributed by the Gross Fixed Capital Formation (PMTB) component which recorded negative growth of 0.23% YoY with a contribution to the economic contraction of 0.07%. (Kontan)

Indonesian GDP Sentiment and the US Minister of Finance. The release of Indonesia’s Gross Domestic Product (GDP) data will still color today’s trade. Market players have the opportunity to return to interest in the benchmark Sovereign Debt Instruments (SUN), especially FR0087 and FR0083. Meanwhile, positive external sentiment came from clarification by the Minister of Finance of the United States (US) Janet Yellen, who emphasized that there was no visible inflation problem. Previously, Janet Yellen, who is also a former chairman of the Fed, stated that the Fed Funds Rate must increase so that the US economy does not experience overheating.