INDONESIA ECONOMIC WEEK IN REV IEW1 September 24-28, 2018 WE E K L Y E C O N O M I C H I G H L I G H T S  The Jakarta Composite Index rose 0.3 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the Euro and Japanese Yen by 0.4 percent and 0.2 percent, respectively, but depreciated against the US dollar by 0.7 percent, over the week.  The government raised IDR 20 trillion from the issuance of Rupiah-denominated bonds on 25 September.  Bank Indonesia (BI) Board of Governors agreed to raise the BI 7-Day Reverse Repo Rate by 25 basis point to 5.75 percent, while also raising the Deposit Facility (DF) and Lending Facility (LF) rates by the same amount to 5.00 percent and 6.50 percent, respectively.  BI introduces Domestic Non Delivery Forward (DNDF) to accelerate the deepening of the foreign exchange market and as an alternative to hedging for banks and corporations.  The government is reviewing tax policy implemented on bonds to address rising yield.  The Ministry of Finance recorded that the government debt stood at IDR 4,363 trillion, equivalent to 30 percent from the GDP, at the end of August 2018.  Motor cycle and car sales grew by 2.4 percent and 5.1 percent yoy, respectively, in August 2018. 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 ) F I N AN C I A L M AR K E T I N D I C AT O R S 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 5,977 28 Sep 0.3% -1.1% 3.1% -5.7% Net purchases by foreign investors 0.89 28 Sep IDR, tn 3.1 -0.3 -1.0 -50.8 Exchange rate: USD/IDR 14,929 28 Sep 0.7% 2.2% 3.6% 10.2% Government bonds Yield: 1 year IDR bond 7.2% 28 Sep bps -4.0 108 72 216 Yield: 5-year IDR bond 8.1% 28 Sep bps -7 34 28 209 Yield: 10-year IDR bond 8.3% 28 Sep bps -8 29 19 173 Foreign investor holdings of IDR 851 28 Sep IDR, tn 10.3 3.7 20.7 13.8 government bonds Indonesia USD bonds stripped spread 182 28 Sep bps -7 -4 -36 21 Asia USD bonds stripped spread 176 28 Sep bps -7 -7 -32 25 Interest rates JIBOR overnight 5.7% 28 Sep bps 21 65 116 176 Spread relative to policy rate -10 28 Sep bps -4 15 66 26 International reserves 117.9 31 Aug USD, bn -- -0.4 -5.0 -12.3 1 DISCLAIMER 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. * One week and month prior to the latest observation I N T E R N AT I O N A L F I N AN C I A L M AR K E T I N D I C AT O R S Value on Change since Change over earlier period 8-Nov-16 Year on Year to 28-Sep-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,977 11.0% 2.3% 0.3% -1.1% 3.1% -5.7% Agriculture 1,593 -8.8% -10.3% 0.5% -0.7% 9.3% -1.2% Mining 1,961 40.4% 39.0% 0.4% -2.2% 1.9% 21.5% Finance 1,077 33.3% 8.5% 0.1% -2.6% 6.7% -5.0% Basic industry 819 53.5% 34.8% -0.3% -1.4% 4.6% 16.9% Consumer 2,505 1.9% 0.1% 0.6% 3.8% 4.1% -12.4% Manufacturing 1,551 9.6% 6.6% 0.4% 1.8% 4.7% -5.6% Infras., utilities & trans 1,040 -4.1% -14.4% 1.2% -0.8% 0.2% -11.6% Australia 6,326 18.7% 10.4% 0.3% -1.4% 0.6% 2.6% H.K. 27,789 21.9% 1.3% -0.6% -2.0% -4.0% -8.9% Japan 24,120 40.4% 18.4% 1.0% 5.7% 8.1% 2.6% Malaysia 12,353 9.1% 1.5% -0.6% -2.0% 5.1% -1.1% Philippines 7,277 1.1% -10.8% -1.4% -7.2% 1.2% -16.6% Singapore 3,257 16.3% 0.9% 1.2% 0.3% -0.4% -5.1% Thailand 1,756 16.9% 5.4% 0.0% 2.2% 9.8% -1.2% U.S. S&P 500 2,914 36.7% 16.1% -0.5% 0.6% 7.2% 8.1% FORE IGN E XC HAN GE RATE S USD exchange rates: IDR 14,929 14.1% 10.9% 0.7% 2.2% 3.6% 10.2% Euro 0.86 -4.4% 1.7% 1.6% 1.2% 0.7% 4.2% Singapore Dollar 1.37 -1.5% 0.3% 0.2% 0.2% 0.2% 2.5% Thai Baht 32.41 -7.4% -2.9% 0.0% -0.4% -2.3% -0.1% Korean Won 1,109.30 -3.0% -3.5% -0.5% -0.1% -0.5% 4.5% Japanese Yen 113.43 8.6% 0.5% 0.6% 2.1% 2.5% 0.8% IDR cross rates: Euro 17,389 19.9% 10.0% -0.4% 1.9% 4.3% 6.9% 100 Yen 13,145 4.7% 10.1% -0.2% 0.1% 0.8% 9.4% U P C O M I N G E V E N T S AN D D AT A R E L E AS E S  BI International Reserves, September data (October 8, 2018)  BI Consumer Confidence Index, September data (October 8, 2018)  BI Retail Sales Survey, September data (October 8, 2018) DATA SOURCES Data are taken from CEIC, with the following exceptions: the latest Jakarta Stock Exchange and Indones ian 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 Indones ian Ministry of Finance provides data on the foreign holdings of IDR government bonds (www.dmo.or.id) contains the most recent observation). Indonesian government USD bond spreads are sourced from DEC’s GEM dataset.