Moody’s Revises Outlook on Indika Energy, ABM Investama to negative

JAKARTA (TheInsiderStories) - Moody's Investors Service has affirmed the Ba3  corporate family rating of PT Indika Energy Tbk (IDX: INDY). The agency also affirmed the Ba3 ratings on the US$285 million backed senior secured notes due 2023 issued by Indo Energy Finance II B.V., the $265 million backed...

Emerging Market Issuers Take Hit from COVID-19 as Global Recession Deepens

JAKARTA (TheInsiderStories) - The global recession is deepening as coronavirus-related restrictions exact a high economic cost and expect the real GDP to contract by 1.0 percent for Group of 20 emerging market (EM) economies in this year. We have already seen a large number of downgrades among...

IHS: Recovery in Global Economic will take Two to Three years

JAKARTA (TheInsiderStories) - The global economy is in the midst of the worst downturn since the 1930s. China’ real GDP plunged a record annual rate of 33.8 percent in the first quarter (1Q) of 2020. On a comparable basis, IHS Markit estimates that US real GDP...

Moody’s Affirms Ratings of Four Indonesian Financial Institutions

JAKARTA (TheInsiderStories) - Moody's Investors Service affirmed the Baa2 long-term local and foreign currency issuer ratings of leasing companies, PT Astra Sedaya Finance (ASF), Federal International Finance (FIF), and PT Adira Dinamika Multi Finance Tbk (IDX: ADMF). The agency has also affirmed the Baa2 long-term local and foreign currency deposit...

ADB: COVID-19 Economic Impact Could Reach $8.8T Globally

JAKARTA (TheInsiderStories) - Asian Development Bank (ADB) sees that COVID-19 pandemic would result in global losses of up to US$8.8 trillion, or 9.7 percent of global gross domestic product (GDP), in the absence of any policy response, says ADB's Chief Economist Yasuyuki Sawada, last weekend....

Indonesia Road Freight Transport Market to Grow Over 9% During 2020 – 2025

JAKARTA (TheInsiderStories) - The Indonesia road freight transport market is expected to grow above 9 percent during 2020 - 2025, said Reportlinker in the latest report. The demand for trucking services in the country is expected to increase, majorly due to the increasing international freight movement...

State Own Enterprises in the Middle of COVID-19

JAKARTA (TheInsiderStories) - The pandemic has highlighted the role of the public sector in saving lives and livelihoods. State-owned enterprises (SOEs) are part of that effort. They can be public utilities that provide essential services. Or public banks that provide loans to small businesses. But some...

BI: COVID-19 Pressures on the Financial Stability Increases

JAKARTA (TheInsiderStories) - Pressure on the financial stability system (FSS) is expected to increase as the effects of the COVID-19 pandemic, said Bank Indonesia (BI) in the latest report. The widespread of the virus to many countries, including to Indonesia, poses a threat to global and...

Global Pandemic Strikes Indonesia’s Aviation Industry

JAKARTA (TheInsiderStories) - The global pandemic is an extraordinary challenge for the global aviation industry. Airport Council International (ACI) director, Angela Gittens said on April 3, that aircraft passenger traffic in the world in 2020 was initially estimated to reach 9.5 billion passengers, up 4.39 percent compared...

PBoC Policy: How Many More Rate Cuts to Come

JAKARTA (TheInsiderStories) - People's Bank of China (PBoC) cut its one-year loan prime rate (LPR) to 3.85 percent from initially 4.05 percent as the country’ economy contracted for the first time in four decades. The central bank also cut its five-year rate to 4.65 percent...

Global Economy: After Worst Recession in 1930s, What Path Will the Recovery Take?

JAKARTA (TheInsiderStories) - IHS Markit is looking past the horrific second-quarter drop in real GDP, and a deeper recession in 2020 than in 200 8 – 2009, to assess the shape and strength of the recovery. A V-shaped recovery in the manufacturing sectors seems plausible, once...

Asian Consumer Sentiment Remains Resilient Amid the COVID-19

JAKARTA (TheInsiderStories) - Asian countries are absorbing the COVID-19 pandemic at markedly different rates, with the impact just beginning to bite in India and Indonesia even as China sees new cases stabilize and local transmission is contained. Over the last month, McKinsey has twice taken pulse surveys...

US, Eurozone’s Economies Need Three Years to Recover

JAKARTA (TheInsiderStories) - The United States (US) and Eurozone’ economies could take until 2023 to recover from the impact of the COVID-19, according to a new report from McKinsey & Co. It said, if the public health response, including social distancing and lockdown measures, is initially successful...

COVID-19 Recession to be Deeper than 2008 – 2009

JAKARTA (TheInsiderStories) - This interim global forecast is the second prepared in March and is much more pessimistic than our March 17 regularly scheduled outlook. It is based on major downgrades to forecasts of the United States (US) economy and oil prices. The risks remain overwhelmingly on...

Countries Must Act Now to Mitigate Economic Shock of COVID-19

JAKARTA (TheInsiderStories) - Developing economies in East Asia and the Pacific (EAP), already struggling with international trade tensions and COVID-19, now face a global shock as the pandemic hits major economies around the world. The countries must act quickly, cooperatively, and at scale. The virus that triggered...

US Scramble for Resources in COVID-19 Response

JAKARTA (TheInsiderStories) - Based on new IHS Markit data, the United States (US) shortage of medical supplies is being exacerbated by trade disruptions from the COVID-19. On a volume basis, China accounted for over one-third (34 percent) of US imports of critical medical supplies in...

Blunting the Impact and Hard Choices: Early Lessons from China

JAKARTA (TheInsiderStories) - The impact of the coronavirus is having a profound and serious impact on the global economy and has sent policymakers looking for ways to respond. China’ experience so far shows that the right policies make a difference in fighting the disease and mitigating...

The Global Economy is Headed for Recession

JAKARTA (TheInsiderStories) - Disruptions to supply chains, demand, international trade flows, and travel, along with lockdowns and collapsing stock prices, resulting from the COVID-19 have dealt a heavy blow to the global economy. The United States (US), Europe, and Japan are headed for recession. We forecast for world...

COVID-19 to Precipitate US Recession in Second Quarter

JAKARTA (TheInsiderStories) - The spread of COVID-19 to the United States (US) is causing a sharp contraction in spending on activities that involve travel and congregating in public. Given the speed of these developments, we are taking the unusual step of updating our base forecast for...

COVID-19: Sharp Reduction in Near-term Growth

JAKARTA (TheInsiderStories) - IHS Markit estimates that global growth in 2020 will be 1.7 percent, compared with 2.5 percent in our February baseline, and 2.7 percent in 2021 compared with the earlier forecast of 2.8 percent. The United States (US) economy will be hurt by the effects...

Coronavirus: Can Policymakers Avert a Trillion-dollar Crisis?

JAKARTA (TheInsiderStories) - The spread of the coronavirus is first and foremost a public health emergency, but its also a significant economic threat. The COVID-19 shock will cause a recession in some countries and depress global annual growth this year to below 2.5 percent, the recessionary...

Fiscal Policies to Protect People During the Coronavirus Outbreak

JAKARTA (TheInsiderStories) - A key role of government is to protect the well-being of its people—most crucially and visibly during emergencies such as the recent outbreak of the coronavirus. The International Monetary Fund (IMF) has US$50 billion available in rapid-disbursing emergency financing to help countries...

ECB: Additional Stimulus on The Way, But How Much and How Soon?

JAKARTA (TheInsiderStories)-  IHS Markit expects the European Central Bank (ECB) to announce yet another package of easing measures on March 12. This is likely to include an enhancement of liquidity provision, a 10 basis points deposit facility rate (DFR) cut, and a modest increase in...

OECD: Global Economy Daces Gravest Threat Since the Crisis

JAKARTA (TheInsideStories) - The coronavirus presents the global economy with its greatest danger since the financial crisis. The COVID-19 is spreading from China to other regions causing human suffering and economic disruption. Its raising health concerns and the risk of wider restrictions on the movement of people, goods...

Indonesia’s 2020 Oil and Gas Output Likely to Fall

JAKARTA (TheInsiderStories) - Indonesia’ production of both oil and gas will most likely fall in 2020 despite the official projections of a combined 8 percent growth year-on-year, said Rystad Energy in the latest report. The upstream task force (SKKMigas) has set an ambitious oil production target...

Morning Briefing: Global Market Plunge for the Worst Since 2018’s World Crisis

JAKARTA (TheInsiderStories) - Good Morning! Global shares plunge amid brutal selling by investor and headed for the worst week since the world financial crisis in 2019. Dowjones stock index dropped sharply by 1,190 as fears of coronavirus outbreak. In Indonesia, the Rupiah touched the level 14,000 against...

Morning Briefing: Global Market Losses Over US$3B Caused of Coronavirus

JAKARTA (TheInsiderStories) - Good Morning! In the face of constant selling pressure, many investors are hoping the Federal Reserves will ride to the rescue or do some jawboning to boost hopes of easing as early as March. The coronavirus outbreak has give deep impact to the...

Morning Briefing: Malaysia’s PM Offers Big Coalition

JAKARTA (TheInsiderStories) - Malaysia' interim prime minister, Mahathir Mohammad has met the leaders of major political parties, including Anwar Ibrahim and those he defeated in the election on Tuesday (02/25). He proposed the idea of ​​a large coalition at the meeting. On Feb. 24, the premier has announced...

Morning Briefing: BI Intervenes Market, COVID-19 Widespread

JAKARTA (TheInsiderStories) - Good Morning! Bank Indonesia intervened the spot foreign exchange market, domestic NDF and bond markets to stem outflows related to fears of the spread of coronavirus in the world. On Monday, there are outflows in the bond market and banks are short covering. The central...

Weekly Briefing: Center of the Week China’s Economic Data

JAKARTA (TheInsiderStories) - Good Morning! The first major data release out of China since the coronavirus outbreak out this week, with the February update of the government sponsored NBS manufacturing PMI. China is slowly getting back to normal, fears over the economic fallout from the spread of...