INDONESIA ECONOMIC WEEK IN REVIEW1 January 07-11, 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose by 1.4 percent over the week, in line with major markets in the region.  The Rupiah appreciated against US dollar, Euro and Japanese Yen by 1.9 percent, 0.9 percent and 2.2 percent, respectively, over the week.  The government raised IDR 8.7 trillion from the issuance of Rupiah-denominated Sharia bonds on 8 January.  Bank Indonesia (BI) reported that the retail sales index went up from 213.7 in November 2018 to 236.4 in December.  BI reported that the Consumer Confidence Index went up from 122.7 in November to 127.0 in December, mainly caused by stronger buying conditions for durable goods.  The government plans to sell retail bonds amounting IDR 80 trillion in 10 planned issuance in 2019, nearly doubles the retail bond sales volume in 2018.  The government lowers the coal production target from 485 million tons in 2018 to 480 million tons in 2019, in an effort to stabilize the global coal price. IDX composite index IDR/USD exchange rate Level (index) and weekly change (percent) Level (IDR/USD) and weekly change (percent) IDR 5-year government bond yield Indonesia USD EMBI Spread Level (percent) and weekly change (bps) Level (percent) and weekly change (bps) FINANCIAL MARKET INDICATORS Change or total: Date of Latest latest Year to Indicator value value Unit 7 days* 30 days* 90 days date Stock market Jakarta Composite Index 6,361 11 Jan 1.4% 4.7% 10.5% 2.9% Net purchases by foreign investors -0.81 11 Jan IDR, tn 4.4 1.5 10.6 4.8 Exchange rate: USD/IDR 14,076 11 Jan -1.9% -3.7% -7.4% -2.7% Government bonds Yield: 1 year IDR bond 6.9% 11 Jan bps 5.4 -9 -31 9 Yield: 5-year IDR bond 8.0% 11 Jan bps 0 -20 -52 0 Yield: 10-year IDR bond 8.2% 11 Jan bps 3 -11 -67 7 Foreign investor holdings of IDR 903 11 Jan IDR, tn 10.8 6.2 52.1 9.0 government bonds Indonesia USD bonds stripped spread 211 11 Jan bps -19 -20 10 -27 Asia USD bonds stripped spread 201 11 Jan bps -12 -12 11 -16 Interest rates IndONIA 5.8% 11 Jan bps -6 84 0 -6 Spread relative to policy rate -16 11 Jan bps -6 9 -25 -6 International reserves 120.7 31 Dec USD, bn -- 3.4 5.8 -9.5 * One week and month prior to the latest observation 1DISCLAIMER This is an internal document and is not for wider circulation. All data and information are from third party sources unless otherwise noted (full list of sources provided at the end of the document). The accuracy of data, statistics or events presented in this document are not independently verified and the document reflects staff interpretation of recent economic developments. INTERNATIONAL FINANCIAL MARKET INDICATORS Value on Change since Change over earlier period 8-Nov-16 Year on Year to 11-Jan-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,361 18.1% -0.4% 1.4% 4.7% 10.5% 2.9% Agriculture 1,598 -8.6% -1.7% 2.4% 6.0% 5.0% 2.9% Mining 1,827 30.8% 4.5% 1.3% 4.5% -5.1% 4.5% Finance 1,204 49.1% 5.5% 1.9% 3.6% 16.0% 2.6% Basic industry 882 65.1% 28.5% 2.7% 7.4% 17.5% 4.2% Consumer 2,629 6.9% -8.1% -0.7% 5.8% 8.2% 1.9% Manufacturing 1,656 17.0% 1.2% 0.3% 5.6% 12.2% 2.4% Infras., utilities & trans 1,114 2.8% -4.6% 4.1% 8.0% 7.9% 5.0% Australia 5,835 9.5% -5.5% 2.8% 3.2% -2.9% 3.7% H.K. 26,667 17.0% -14.3% 4.1% 3.5% 3.4% 6.1% Japan 20,360 18.5% -14.1% 4.1% -3.7% -10.3% 4.1% Malaysia 11,452 1.1% -10.5% 1.1% 1.6% -3.0% 1.3% Philippines 7,904 9.8% -10.3% 1.8% 6.1% 12.8% 5.5% Singapore 3,199 14.2% -8.9% 4.6% 4.6% 4.2% 5.3% Thailand 1,597 6.3% -11.4% 1.4% -2.2% -5.1% 2.0% U.S. S&P 500 2,596 21.8% -6.2% 2.5% -1.5% -6.2% 3.4% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,076 7.6% 4.8% -1.9% -3.7% -7.4% -2.7% Euro 0.87 -4.1% 4.2% -1.1% -1.3% 0.4% -1.2% Singapore Dollar 1.35 -2.7% 1.4% -0.8% -1.6% -1.6% -1.1% Thai Baht 31.92 -8.9% -0.5% -0.5% -2.8% -2.4% -1.4% Korean Won 1,116 -2.3% 4.1% -0.7% -1.2% -1.3% -0.2% Japanese Yen 108.33 3.7% -3.1% 0.5% -4.2% -3.6% 0.5% IDR cross rates: Euro 16,213 11.8% 0.9% -0.9% -2.4% -8.1% -2.1% 100 Yen 12,997 3.6% 8.0% -2.2% 0.5% -4.0% -1.7% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia Board of Governors’ Meeting (January 16-17, 2019) DATA SOURCES Data are taken from CEIC, with the following exceptions: the latest Jakarta Stock Exchange and Indonesian government IDR bond yield data are taken from the Indonesian Stock Exchange (www.idx.co.id), and IDR mid exchange rates from Bank Indonesia (www.bi.go.id), after 5 pm each day. BI reports international reserves data directly, with a lag of approximately two weeks. CEIC provides the latest BI JIBOR rates via a special direct data service. The Directorate General of Debt Management at the Indonesian Ministry of Finance provides data on the foreign holdings of IDR government bonds (www.djppr.kemenkeu.go.id) contains the most recent observation). Indonesian government USD bond spreads are sourced from DEC’s GEM dataset.