- Economy: BPS reported a deflation in May 24
The Statistics Bureau (BPS) reported a deflation of 0.03% in May 24, marking the first deflation since Aug 23. Meanwhile, the yoy inflation stood at 2.84%, within the government’s target range between 1.5% and 3.5%. Beverages and tobacco were the main contributors to deflation, with a decrease of 0.03% and a total deflation contribution of 0.08%. The leading deflation-contributing commodities were rice (0.15 %), chicken meat, and fresh fish (0.03% each). Additionally, transportation commodities experienced a deflation of 0.36%, contributing to a deflation of 0.04%. (Jakarta Globe)
What we think: The improvement in weather conditions caused rice and other food commodity prices to decline after a fast increase last year due to the drought in Indonesia. Pertamina’s decision to hold the non-subsidized fuel prices should be positive to keep inflation below 3% in Jun 24. - MTDL distributes IDR 21 dividend per share
Metrodata Electronics (MTDL) will distribute IDR 21 dividends per share, totalling IDR 257.8B. The dividend payout ratio is at 39.6% from its FY23 net profit of IDR 650.8B. (Kontan)
What we think: Based on the last closing price of IDR 560, MTDL’s dividend yield is 3.75%. The company’s increasing payout ratio is backed by consistent growth in earnings.