INDONESIA ECONOMIC WEEK IN REVIEW1 March 12 - March 16, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index fell 2.0 percent over the week, while major markets in the region recorded a raise.  The Rupiah appreciated against the US Dollar and Euro by 0.2 percent, but depreciated against the Japanese Yen by 0.5 percent, over the week.  Trade deficit narrowed in February 2018 to USD 116 million from USD 756 million in January, with growth of export accelerated to 11.9 percent yoy while growth of import moderated slightly to 25.2 percent yoy.  Indonesia’s budget deficit stood at IDR 48.9 trillion (0.3 percent of GDP) as of February 2018, slightly lower than the same period last year of IDR 54.7 trillion (0.4 percent of GDP).  Indonesia’s total external debt stood at USD 357 billion in January, growing by 10.3 percent yoy compared to 10.1 percent in December 2017.  Credit growth accelerated to 8.24 percent yoy in December 2017 from 7.47 percent in November, while deposit growth moderated to 9.35 percent from 9.83 percent in the same period.  The Government raised IDR 23.45 trillion from the issuance of Rupiah-denominated bonds on March 13, 2018.  The Government plans to lower the limit of the investment requirement from IDR 1 trillion to IDR 500 billion for companies to be eligible for the tax holiday incentive through regulation revision by the end of March 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) 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 6,305 16 Mar -2.0% -4.2% 3.0% -0.5% Net purchases by foreign investors -1.03 16 Mar IDR, tn -4.9 -12.3 -18.6 -18.4 Exchange rate: USD/IDR 13,765 16 Mar -0.2% 0.9% 1.4% 1.6% Government bonds Yield: 1 year IDR bond 5.2% 16 Mar bps -13.9 30 10 18 Yield: 5-year IDR bond 6.4% 16 Mar bps -9 40 23 -19 Yield: 10-year IDR bond 6.9% 16 Mar bps -16 25 23 95 Foreign investor holdings of IDR 838 16 Mar IDR, tn 7.0 -13.1 3.3 0.9 government bonds Indonesia USD bonds stripped spread 178 15 Mar bps 1 7 4 18 Asia USD bonds stripped spread 167 15 Mar bps 2 4 12 16 Interest rates JIBOR overnight 3.9% 16 Mar bps -8 3 4 4 Spread relative to policy rate -31 16 Mar bps -8 3 4 4 International reserves 128.1 28 Feb USD, bn -- -3.9 1.5 -2.1 * 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 16 Mar-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,305 17.1% 14.3% -2.0% -4.2% 3.0% -0.5% Agriculture 1,636 -6.4% -10.5% -3.5% 0.3% 1.3% 1.5% Mining 1,825 30.6% 28.4% -2.7% -6.8% 16.6% 13.0% Finance 1,166 44.4% 36.3% -0.6% -2.9% 7.9% 2.9% Basic industry 747 39.9% 30.5% -1.6% 3.0% 11.1% 6.6% Consumer 2,654 7.9% 8.6% -1.6% -6.9% -1.9% -7.2% Manufacturing 1,572 11.1% 9.0% -1.8% -5.0% -0.2% -4.3% Infras., utilities & trans 1,095 1.0% 0.0% -6.1% 0.0% 0.0% -6.9% Australia 6,055 13.6% 3.9% -0.2% 1.6% -0.5% -1.8% H.K. 31,502 38.2% 29.7% 1.6% 5.6% 9.2% 3.2% Japan 21,677 26.2% 10.7% 1.0% 2.0% -3.9% -4.8% Malaysia 12,782 12.9% 8.3% 0.6% 0.1% 4.3% 2.4% Philippines 8,238 14.5% 13.2% -1.6% -3.9% -1.2% -3.7% Singapore 3,512 25.4% 11.0% 0.8% 2.8% 2.8% 2.4% Thailand 1,812 20.6% 16.4% 2.0% 0.7% 5.5% 3.3% U.S. S&P 500 2,752 29.1% 15.6% -1.2% 3.3% 2.8% 2.1% FOREIGN EXCHANGE RATES USD exchange rates: IDR 13,765 5.2% 3.2% -0.2% 0.9% 1.4% 1.6% Euro 0.81 -10.1% -12.8% -0.1% 0.3% -4.0% -1.9% Singapore Dollar 1.31 -5.3% -6.5% -0.3% -0.6% -2.4% -1.4% Thai Baht 31.23 -10.8% -10.9% -0.5% -1.0% -4.0% -4.5% Korean Won 1,066.20 -6.7% -5.8% -0.3% -1.7% -2.2% 0.5% Japanese Yen 105.65 1.2% -6.7% -1.0% -1.9% -5.8% -6.2% IDR cross rates: Euro 16,941 16.8% 18.5% -0.2% 1.0% 5.9% 4.2% 100 Yen 12,988 3.5% 10.4% 0.5% 3.5% 7.3% 8.1% UPCOMING EVENTS AND DATA RELEASES  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.dmo.or.id) contains the most recent observation). Indonesian government USD bond spreads are sourced from DEC’s GEM dataset.