INDONESIA ECONOMIC WEEK IN REVIEW1 February 25-March 01, 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index declined 0.02 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the Japanese Yen by 0.6 percent but depreciated against the US dollar and Euro by 0.2 percent and 0.5 percent, respectively, over the week.  The government raised IDR 22 trillion from the issuance of Rupiah-denominated bonds on February 26.  Statistics Indonesia (BPS) recorded a year-on-year inflation of 2.6 percent in February, lower than 2.8 percent recorded in January.  The headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers’ Index (PMI) rose from 49.9 in January to 50.1 in February.  Broad Money (M2) grew by 5.5 percent yoy to IDR 5,645.8 trillion in January 2019, slower than 6.3 percent recorded in December 2018.  The government signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).  The Financial Services Authority (OJK) has removed the Trade Business License (SIUP) and Company Registration Certificate (TDP) from the requirements for firms applying for commercial bank loans. 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 6,500 01 Mar -0.02% 1.0% 7.3% 4.9% Net purchases by foreign investors -0.51 01 Mar IDR, tn -1.6 -0.7 1.2 8.6 Exchange rate: USD/IDR 14,111 01 Mar 0.2% 0.1% -1.6% -2.6% Government bonds Yield: 1 year IDR bond 6.6% 01 Mar bps -9.9 -20 -14 -23 Yield: 5-year IDR bond 7.6% 01 Mar bps -17 -41 -37 -42 Yield: 10-year IDR bond 8.0% 01 Mar bps -7 -34 -5 -12 Foreign investor holdings of IDR 935 01 Mar IDR, tn 3.5 32.4 34.5 41.9 government bonds Indonesia USD bonds stripped spread 189 01 Mar bps -14 -13 -34 -48 Asia USD bonds stripped spread 178 01 Mar bps -10 -12 -30 -39 Interest rates IndONIA 5.8% 01 Mar bps -9 82 -14 -9 Spread relative to policy rate -18 01 Mar bps -9 7 -14 -9 International reserves 120.1 31 Jan USD, bn -- -0.6 4.9 -10.1 * 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 01-Mar-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,500 20.7% -1.6% -0.02% 1.0% 7.3% 4.9% Agriculture 1,530 -12.4% -12.9% -4.6% -8.5% 4.2% -2.2% Mining 1,887 35.1% -5.8% -2.7% 0.5% 10.3% 6.2% Finance 1,234 52.8% 3.9% -0.1% 1.2% 5.8% 4.9% Basic industry 881 65.1% 13.9% -0.8% -4.3% 9.5% 3.1% Consumer 2,699 9.7% -5.0% 2.3% 3.3% 9.8% 5.0% Manufacturing 1,657 17.1% -0.7% 0.5% -1.0% 6.3% 2.4% Infras., utilities & trans 1,220 12.5% 4.6% 1.1% 7.5% 18.3% 14.7% Australia 6,274 17.7% 3.3% 0.5% 5.6% 9.1% 9.9% H.K. 28,812 26.4% -7.2% 0.0% 4.7% 8.7% 11.5% Japan 21,603 25.8% -0.6% 0.8% 4.5% -3.3% 7.9% Malaysia 11,698 3.3% -9.7% -1.4% 0.9% 1.9% 2.2% Philippines 7,642 6.2% -9.7% -4.0% -5.1% 3.7% 2.4% Singapore 3,220 15.0% -8.4% -1.5% 1.0% 3.3% 4.9% Thailand 1,641 9.3% -10.3% -1.1% 1.1% 0.3% 5.0% U.S. S&P 500 2,804 31.5% 4.7% 0.4% 6.2% 1.6% 11.8% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,111 7.9% 2.3% 0.2% 0.1% -1.6% -2.6% Euro 0.88 -2.8% 6.9% -0.5% 0.3% -0.2% 0.6% Singapore Dollar 1.35 -2.6% 2.1% -0.1% -0.1% -1.3% -0.9% Thai Baht 31.62 -9.7% 0.5% 1.2% 0.2% -3.9% -2.6% Korean Won 1,125 -1.6% 3.9% 0.0% 0.7% 0.3% 0.8% Japanese Yen 111.81 7.1% 4.7% 1.0% 2.4% -1.5% 1.3% IDR cross rates: Euro 16,041 10.6% -4.6% 0.5% -0.4% -1.8% -3.1% 100 Yen 12,633 0.7% -2.3% -0.6% -2.1% -0.1% -3.6% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia Consumer Confident Index, February data (March 06, 2019)  Foreign Exchange Reserves Report, February data (March 08, 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.