Indonesia Might go Through Recession as Economic Growth Projection in Q3 will Enter the Negative Zone
Minister of Finance Sri Mulyani Indrawati stated that there is a possibility that Indonesia will go through recession and projects that economic growth in the third quarter of 2020 will enter the negative zone -2.9% to -1.1%. Meanwhile, this yearâ€™s economic growth was revised to be -1.7% to -0.6%. If this projection is correct, Indonesia’s economy will officially going into recession, considering that in the second quarter, the national economy had contracted by 5.32%. Despite the recession, Sri Mulyani said there is still hope for an improvement in Indonesiaâ€™s economy. (Investor Daily)
The results of the Government Debt Securities (SUN) auction on September 22, 2020 for series SPN03201223 (new issuance), SPN12210701 (reopening), FR0086 (reopening), FR0087 (reopening), FR0080 (reopening), FR0083 (reopening) and FR0076 (reopening) recorded the total incoming bids of Rp 46 trillion, with the total amount awarded of Rp 22 trillion. The total incoming bids in this auction are slightly lower than the previous SUN auction (September 8) which amounted to Rp 52 trillion. The yield of the 10-year Government Bonds increased by 3 bps on September 22 to 6.9%, from the previous auction date of 6.87% on September 8.
Source: Danareksa Sekuritas Debt Research