INDONESIA ECONOMIC WEEK IN REVIEW1 August 20-24, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 3.2 percent over the week, in line with major markets in the region.  The Rupiah depreciated against the US Dollar, Euro and Japanese Yen by 0.2 percent, 2.1 percent and 0.2 percent, respectively, over the week.  The Government raised IDR 6.3 trillion from the issuance of Rupiah-denominated Sharia bonds on 21 August.  Bank Indonesia (BI) is to lower the minimum transaction amount for forex swap hedging from USD 10 million to USD 2 million.  BI reported that the external debt at the end of Q2 2018 amounted to USD 355.7 billion, growing by 5.5 percent yoy.  The government is planning to impose a multi-layered tax for plastic bags, starting in 2019.  The government revised down the target of additional coal production quota from 100 million tons to 25 million tons. 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 5,969 24 Aug 3.2% 0.6% -0.1% -5.8% Net purchases by foreign investors 0.03 24 Aug IDR, tn 0.0 0.0 -9.6 -50.5 Exchange rate: USD/IDR 14,655 24 Aug 0.2% 0.8% 3.5% 8.2% Government bonds Yield: 1 year IDR bond 6.1% 24 Aug bps 4.5 -30 -36 110 Yield: 5-year IDR bond 7.8% 24 Aug bps 0 3 52 178 Yield: 10-year IDR bond 8.0% 24 Aug bps -7 -2 21 147 Foreign investor holdings of IDR 848 24 Aug IDR, tn 2.9 10.4 15.4 10.5 government bonds Indonesia USD bonds stripped spread 196 24 Aug bps 2 11 -3 35 Asia USD bonds stripped spread 190 24 Aug bps 2 6 1 38 Interest rates JIBOR overnight 5.4% 24 Aug bps 9 43 131 154 Spread relative to policy rate -7 24 Aug bps 9 18 31 29 International reserves 118.3 31 Jul USD, bn -- -1.5 -6.6 -11.9 * 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 24-Aug-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,969 10.8% 1.3% 3.2% 0.6% -0.1% -5.8% Agriculture 1,634 -6.5% -6.5% 3.1% 12.1% 5.7% 1.3% Mining 1,984 42.0% 28.5% 0.9% -2.1% 5.9% 22.8% Finance 1,090 35.0% 10.3% 4.7% 4.5% 3.0% -3.8% Basic industry 828 55.2% 35.9% 5.9% 6.2% 3.8% 18.2% Consumer 2,403 -2.3% -3.0% 3.1% -1.8% -2.6% -16.0% Manufacturing 1,519 7.3% 4.4% 3.8% 1.7% -0.5% -7.6% Infras., utilities & trans 990 -8.7% -20.6% -0.8% -10.4% -2.6% -15.8% Australia 6,358 19.3% 9.6% -1.1% 0.0% 3.5% 3.1% H.K. 27,672 21.4% 0.6% 1.7% -3.5% -9.5% -9.3% Japan 22,602 31.6% 16.8% 1.5% 0.4% 0.7% -3.8% Malaysia 12,529 10.6% 1.9% 1.1% 1.8% 1.5% 0.3% Philippines 7,766 7.9% -3.0% 2.4% 4.3% 1.6% -11.0% Singapore 3,213 14.7% -1.8% 0.1% -2.4% -8.5% -6.3% Thailand 1,704 13.4% 8.1% 0.8% 1.8% -1.7% -4.2% U.S. S&P 500 2,875 34.9% 17.9% 0.9% 1.9% 5.6% 6.6% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,655 12.0% 9.7% 0.2% 0.8% 3.5% 8.2% Euro 0.86 -4.5% 1.9% -1.7% 1.0% 0.8% 4.1% Singapore Dollar 1.37 -1.1% 0.9% -0.1% 0.5% 2.4% 2.9% Thai Baht 32.83 -6.3% -1.6% -1.1% -1.9% 2.5% 1.2% Korean Won 1,118.90 -2.1% -0.8% -0.5% -1.4% 3.8% 5.4% Japanese Yen 111.39 6.7% 1.9% 0.6% 0.2% 1.9% -1.0% IDR cross rates: Euro 16,927 16.7% 7.4% 2.1% -0.4% 2.1% 4.1% 100 Yen 13,157 4.8% 7.6% 0.2% 0.7% 1.8% 9.5% UPCOMING EVENTS AND DATA RELEASES  BPS Consumer Price Index, August data (September 2, 2018)  Nikkei Indonesia Manufacturing PMI, August data (September 2, 2018) 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.