INDONESIA ECONOMIC WEEK IN REVIEW1 September 10-14, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 1.4 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the US Dollar and Japanese Yen by 0.3 percent and 1.5 percent, respectively, but depreciated against the Euro by 0.3 percent, over the week.  The Government raised IDR 16.2 trillion from the issuance of Rupiah-denominated bonds on 12 September.  Foreign exchange reserves stood at USD 117.9 billion at the end of August 2018, USD 400 million lower than the July level.  Central Statistics Agency (BPS) recorded a trade deficit of USD 1.0 billion in August 2018. Exports grew by 4.1 percent yoy to USD 15.8 billion while imports grew by 24.7 percent to USD 16.8 billion.  Bank Indonesia (BI) reported that the Retail Sales Index went down from 216.0 in July to 207.8 in August. However, the index grew by 2.8 percent yoy.  BI reported that the Consumer Confidence Index went down from 124.8 in July to 121.6 in August, mainly caused by decreased consumer confidence in the income index and buying conditions for durable goods. 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 5,931 14 Sep 1.4% 2.8% -1.0% -6.4% Net purchases by foreign investors 0.27 14 Sep IDR, tn -1.4 -4.8 -13.2 -54.2 Exchange rate: USD/IDR 14,835 14 Sep -0.3% 1.4% 6.7% 9.5% Government bonds Yield: 1 year IDR bond 7.2% 14 Sep bps -7.7 111 87 213 Yield: 5-year IDR bond 8.4% 14 Sep bps -7 67 138 239 Yield: 10-year IDR bond 8.7% 14 Sep bps -2 62 117 209 Foreign investor holdings of IDR 836 14 Sep IDR, tn -2.7 -13.3 -9.5 -1.5 government bonds Indonesia USD bonds stripped spread 196 14 Sep bps -11 3 -7 36 Asia USD bonds stripped spread 188 14 Sep bps -7 0 -8 36 Interest rates JIBOR overnight 5.5% 14 Sep bps 7 47 -59 157 Spread relative to policy rate -3 14 Sep bps 7 22 -134 32 International reserves 117.9 31 Aug USD, bn -- -0.4 -5.0 -12.3 * 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 14-Sep-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,931 10.1% 1.4% 1.4% 2.8% -1.0% -6.4% Agriculture 1,625 -7.0% -10.6% 2.1% 8.1% 5.9% 0.8% Mining 1,917 37.2% 32.6% 2.6% -2.9% -1.7% 18.7% Finance 1,069 32.3% 8.6% 0.3% 1.8% 0.9% -5.7% Basic industry 800 49.8% 34.0% 1.1% 3.9% -1.2% 14.1% Consumer 2,489 1.2% -2.0% 2.1% 8.0% 2.1% -13.0% Manufacturing 1,531 8.2% 4.2% 1.7% 6.2% 0.9% -6.8% Infras., utilities & trans 1,035 -4.6% -15.6% 3.5% 3.6% -0.5% -12.0% Australia 6,276 17.7% 8.2% 0.4% -1.7% 1.1% 1.8% H.K. 27,286 19.7% -1.8% 1.2% -1.7% -10.0% -10.6% Japan 23,095 34.4% 16.6% 3.5% 3.3% 1.1% -1.8% Malaysia 12,305 8.7% -0.4% -0.6% -0.8% 1.2% -1.5% Philippines 7,413 3.0% -9.0% -2.4% -1.5% -1.5% -15.0% Singapore 3,161 12.9% -1.8% 0.9% -2.5% -5.8% -7.8% Thailand 1,722 14.6% 3.8% 1.9% 1.6% 0.7% -3.2% U.S. S&P 500 2,905 36.3% 16.4% 1.2% 2.3% 4.5% 7.8% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,835 13.4% 12.1% -0.3% 1.4% 6.7% 9.5% Euro 0.86 -5.4% 1.7% -0.6% -2.4% -0.8% 3.2% Singapore Dollar 1.37 -1.3% 1.4% -0.4% -0.3% 2.5% 2.7% Thai Baht 32.59 -6.9% -1.6% -0.6% -2.2% 0.7% 0.5% Korean Won 1,116.60 -2.3% -1.4% -0.6% -1.0% 1.7% 5.2% Japanese Yen 111.82 7.1% 1.3% 1.0% 0.6% 1.2% -0.7% IDR cross rates: Euro 17,347 19.6% 10.3% 0.3% 3.9% 5.8% 6.7% 100 Yen 13,263 5.7% 10.7% -1.5% 0.5% 4.7% 10.4% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia Board of Governors’ Meeting (September 26-27, 2018)  Car sales, August data (September 27, 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.