INDONESIA D AILY ECONOMIC UPDATE
                                     Wednesday, February 7, 2018



ECONOMIC HIGHLIGHTS
 Moody's Investors Service says that Indonesia's credit profile (Baa3 positive) is supported by narrow
     fiscal deficits, low government debt, a large economy and healthy GDP growth prospects.
 Bank Indonesia estimates Indonesia economy in 2018 will grow between 5.1 – 5.4 percent, considering
     Indonesia was able to grow 5.07 percent last year amidst global uncertainties.
 According to Bank Indonesia’s Retail Sales Survey, Indonesia’s retail sales growth accelerated to 1.8
     percent yoy in Q4 2017 from 0.2 percent in Q3 2017.
 Indonesian Government through Ministry of Public Works and Housing will disburse budget allocation
     of IDR 55 billion to reduce stunting or chronic malnutrition.

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                        6,535      07 Feb                     0.9%       -1.1%         2.3%          2.8%
                  Net purchases by             -0.47      07 Feb      IDR, tn           --        -5.5         -3.9          -2.5
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia             13,533      07 Feb                    -0.3%        0.9%         1.0%          -0.1%
                       Bloomberg              13,555      07 Feb                     0.1%        1.3%         1.1%           0.0%

Government bonds
              Yield: 1 year IDR bond            5.0%      07 Feb         bps          -0.7          -1           -2           -10
              Yield: 5-year IDR bond            6.0%      07 Feb         bps           1.4           6           16           -62
             Yield: 10-year IDR bond            6.6%      07 Feb         bps           1.3           8           26            60
       Foreign holdings of IDR bonds             868      06 Feb      IDR, tn            --         -5           19            31
   Indonesia USD bonds strip spread              155      06 Feb         bps          -8.3           4           -4           -11
        Asia USD bonds strip spread              150      06 Feb         bps          -7.5           6            2            -5
 Indonesia sovereign CDS: 5yr, mid-                90     06 Feb         bps           4.0           8            6             2
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 212    06 Feb          bps           -4         10               1         -10

Interest rates
                     JIBOR overnight            3.9%      07 Feb          bps          0.0         0.0          0.0           0.0
                 JIBOR spread relative          -35.0     07 Feb          bps          0.0         0.0          0.0           0.0
                         to policy rate

International reserves                         130.2      29 Dec    USD, bn              --          --         3.6          24.3

* 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.