INDONESIA D AILY ECONOMIC UPDATE
                                       Tuesday, 22 May 2018



ECONOMIC HIGHLIGHTS
 The Ministry of Finance is preparing revisions to a law on income and value-added (PPh and
  PPN) taxes as part of the taxation reform.
 State-owned gas distributor PT Perusahaan Gas Negara (PGN) to discuss a plan to establish a
  gas subholding company under the state-owned gas holding company headed by Pertamina
  and PGN.



DAILY INDONESIAN FINANCIAL INDICATORS

                                                                                Change                  Change or total
                                                         Date of                 since
                                                                      Unit
                                            Latest        latest                  last        In last       In last    Year-to-
                                            value         value                 trading       week*         month*      date
                                                                                  day

Stock market
Jakarta Composite Index                        5,751      22 May                     0.3%       -1.5%          -9.3%       -9.5%
                  Net purchases by
                                                -0.35     22 May      IDR, tn            --       -4.3         -14.4        -41.8
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia             14,178      22 May                     0.0%        1.1%          2.7%         4.7%
                       Bloomberg              14,142      22 May                    -0.3%        0.7%          1.8%         4.3%

Government bonds
              Yield: 1 year IDR bond            6.3%      22 May         bps           9.8         41           105           128
              Yield: 5-year IDR bond            7.2%      22 May         bps           6.8         31            86            63
             Yield: 10-year IDR bond            7.8%      22 May         bps           8.8         45            92           176
       Foreign holdings of IDR bonds             827      18 May      IDR, tn            --        -7           -44            -9
   Indonesia USD bonds strip spread              201      21 May         bps          -0.2         13            32            35
        Asia USD bonds strip spread              188      21 May         bps           0.1          6            22            33
 Indonesia sovereign CDS: 5yr, mid-
                                                   123    21 May          bps          0.0              4         27           35
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 310    21 May          bps           -4              6         43           89

Interest rates
                     JIBOR overnight            4.2%      22 May          bps         -2.0       13.7           16.3         27.2
                 JIBOR spread relative
                                                -32.8     22 May          bps         -2.0       -11.3          -8.7          2.2
                         to policy rate

International reserves                         124.9      30 Apr    USD, bn              --          --         -3.2         -5.3

* One week and month prior to latest observation


SOURCES
Data are taken from the following: the latest Jakarta Stock Exchange and Indonesian government IDR bond yield data are taken from
the Indonesian Stock Exchange (www.idx.co.id). BI JIBOR and IDR mid exchange rates from Bank Indonesia (www.bi.go.id), after 5
pm each day. BI reports international reserves data directly. The Directorate General of Debt Management at the Indonesian Ministry
of Finance provides data on the foreign holdings of IDR government bonds (www.dmo.or.id). The CDS premium on 5-year Indonesian
government USD bonds and Indonesian corporate bond spreads are sourced from JPMorgan.