INDONESIA ECONOMIC WEEK IN REVIEW1 29 July 2019 – 2 August 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose by 1.5 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the US dollar, Euro and Japanese Yen by 1.0 percent, 0.8 percent and 1.8 percent, respectively, over the week.  The government raised IDR 6.06 trillion from the issuance of Rupiah-denominated Sharia bonds on April 16.  The Ministry of Finance has released Regulation No. 48/PMK.07/2019 on the management of non-physical special allocation fund (DAK).  The government is drafting a regulation concerning a superdeduction tax that will be implemented for manufacturing companies running vocational schools.  Elections (presidential and legislative) took place peacefully on April 17 with the incumbent President Jokowi unofficially confirmed as the winner.  The Ministry of Finance reported that the state budget deficit reached IDR 102 trillion in Q1 2019 (equivalent to 0.63 percent from GDP, which is higher than 0.58 percent recorded in Q1 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 6,507 18 Apr 1.5% -0.03% 1.3% 5.0% Net purchases by foreign investors 1.43 18 Apr IDR, tn 0.1 5.4 7.4 14.5 Exchange rate: USD/IDR 14,016 18 Apr -1.0% -1.6% -1.0% -3.6% Government bonds Yield: 1 year IDR bond 6.4% 18 Apr bps -3.1 -6 -47 -36 Yield: 5-year IDR bond 7.2% 18 Apr bps -10 -18 -81 -79 Yield: 10-year IDR bond 7.7% 18 Apr bps -7 -16 -56 -38 Foreign investor holdings of IDR 953 18 Apr IDR, tn -14.4 4.8 48.3 59.7 government bonds Indonesia USD bonds stripped spread 178 18 Apr bps -8 -15 -29 -52 Asia USD bonds stripped spread 174 18 Apr bps -4 -7 -18 -40 Interest rates IndONIA 6.0% 18 Apr bps 7 98 7 7 Spread relative to policy rate -2 18 Apr bps 7 23 7 7 International reserves 124.5 30 Mar USD, bn -- 1.3 7.3 3.9 * 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 18-Apr-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,507 18.9% 3.0% 1.5% -0.03% 1.3% 5.0% Agriculture 1,488 -15.9% -13.6% 0.0% -1.5% -6.1% -4.9% Mining 1,783 28.2% -7.2% -0.8% -4.6% -4.6% 0.4% Finance 1,310 59.6% 14.2% 2.1% 5.2% 7.0% 11.5% Basic industry 848 55.8% 8.0% -0.1% -6.1% -5.1% -0.8% Consumer 2,546 1.7% -3.8% 1.2% -5.3% -2.8% -0.9% Manufacturing 1,599 11.0% 0.5% 1.2% -4.2% -3.7% -1.2% Infras., utilities & trans 1,164 5.1% 8.3% 2.2% -1.8% 1.9% 9.4% Australia 6,350 18.9% 6.6% 0.9% 1.1% 7.4% 11.1% H.K. 29,963 30.8% -1.1% 0.4% 1.9% 12.0% 17.5% Japan 22,090 28.6% -0.3% 1.7% 2.3% 8.3% 10.4% Malaysia 11,298 -1.0% -12.7% -0.5% -3.1% -2.0% -1.4% Philippines 7,835 7.2% 1.4% -1.5% -0.5% -1.2% 4.9% Singapore 3,348 18.7% -5.9% 0.5% 4.2% 4.1% 9.6% Thailand 1,675 10.9% -5.5% 1.0% 3.6% 6.0% 7.1% U.S. S&P 500 2,905 35.8% 7.3% 0.6% 2.5% 10.2% 16.9% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,016 7.1% 1.8% -1.0% -1.6% -1.0% -3.6% Euro 1.13 24.2% 39.4% 26.7% 27.7% 28.2% 28.9% Singapore Dollar 1.35 -2.6% 3.3% 0.0% 0.1% -0.2% -1.1% Thai Baht 31.80 -9.1% 1.8% 0.1% 0.4% 0.5% -2.0% Korean Won 1,137 0.2% 6.4% -0.2% 0.4% 1.3% 1.9% Japanese Yen 111.84 7.1% 4.2% 0.7% 0.5% 2.8% 1.3% IDR cross rates: Euro 15,829 9.6% -7.1% -0.8% -1.9% -1.9% -4.9% 100 Yen 12,519 -0.1% -2.5% -1.8% -1.9% -3.7% -4.8% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia Board of Governors’ Meeting (April 24-25, 2019)  Broad Money (M2) Report, March data (April 30, 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.