Government Bonds
Yield Drops Again Ahead of GDP Data Release. The yield on 10-year Government Bonds (SUN) fell to 6.26% again, and the 20-year SUN was below the psychological 7% level. Yesterday’s government securities (SBN) market movement was in the midst of waiting for the release of Indonesia’s 2Q21 Gross Domestic Product (GDP) data which by consensus is projected to grow 6.7% YoY. The decline in SBN yields was also in line with the movement of the 10-year UST yield which remained low below 1.2% or moved within the range of 1.17% to 1.18%.

Corporate Bonds
BNLI: Profit Up 74.3% to IDR 639 Billion in 1H21. PT Bank Permata Tbk (BNLI) recorded a net profit after tax of IDR 639 billion in the first semester of 2021, an increase of 74.3% YoY. The increase in net profit was in line with operating income which grew by 19.4% YoY to IDR 4.9 trillion and operating profit before reserves which grew by 36.6% YoY. (Kontan)

Internet Quota Subsidy Assistance Worth IDR 2.77 Trillion. The government has prepared a budget of IDR 2.77 trillion for internet quota subsidies. This budget includes IDR 2.3 trillion for internet quota subsidies by the Ministry of Education, Culture, Research and Technology (Kemendikbud-Ristek) and IDR 470 billion by the Ministry of Religion (MoRA). The quota subsidy assistance will last for 3 months from September to November 2021. Internet quota subsidy assistance through the Ministry of Education and Research and Technology will be distributed to 26.89 million students, teachers, and lecturers. (Investor Daily)

Investors Pay Attention to GDP Data Release. In today’s trading, investors will pay close attention to the release of Indonesia’s 2Q21 GDP data which by consensus is projected to grow 6.7% YoY. NHKSI Research sees a trend of economic recovery, although optimism has decreased and the potential for economic pressures has returned in the last two weeks of June 2021. We also see that the Eid stimulus in May was not optimal, which was the driving force for consumption. This is due to the prohibition of going home and activity restrictions.