INDONESIA ECONOMIC WEEK IN REVIEW1 May 28 – June 01, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 0.1 percent over the week, while major markets in the region recorded a decline.  The Rupiah appreciated against the US Dollar, Euro and Japanese Yen by 1.5 percent, 1.9 percent and 0.7 percent, respectively, over the week.  The Government raised IDR 4.4 trillion from the issuance of Rupiah-denominated Sharia bonds on May 30 and also raised IDR 1.9 trillion from the selling of Retail Saving Bonds Series 003 (SBR003) which was offered from 14 to 25 May 2018 via online platform (e-SBN).  Bank Indonesia raised its 7-Day Reverse Repo Rate by 25 basis point to 4.75 percent. It also raised the Deposit Facility and Lending Facility rates by the same amount to 4.0 percent and 5.5 percent, respectively.  Based on the central government’s financial report (LKPP) in 2017 audited by the Audit Board (BPK), the budget deficit stood at IDR 341 trillion (equivalent to 2.5 percent of GDP) while the tax ratio was 10.7 percent.  The government has prohibited state-owned enterprises (SOEs) from seeking new banks loans, requiring them to find alternative financing, such as securitization and bonds. 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 5,984 01 Jun 0.1% -0.2% -9.1% -5.6% Net purchases by foreign investors -0.47 01 Jun IDR, tn 0.5 -6.6 -31.2 -40.5 Exchange rate: USD/IDR 13,951 01 Jun -1.5% 0.1% 1.5% 3.0% Government bonds Yield: 1 year IDR bond 6.3% 01 Jun bps -17.0 35 122 129 Yield: 5-year IDR bond 6.9% 01 Jun bps -32 36 65 37 Yield: 10-year IDR bond 7.4% 01 Jun bps -39 20 51 144 Foreign investor holdings of IDR 834 01 Jun IDR, tn 1.7 -12.8 -8.8 -3.2 government bonds Indonesia USD bonds stripped spread 200 01 Jun bps 1 16 29 39 Asia USD bonds stripped spread 191 01 Jun bps 3 15 31 40 Interest rates JIBOR overnight 4.3% 01 Jun bps 19 29 39 43 Spread relative to policy rate -43 01 Jun bps -6 -21 -11 -7 International reserves 124.9 30 Apr USD, bn -- -3.2 -5.3 -5.3 * 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 01-Jun-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,984 11.1% 4.3% 0.1% -0.2% -9.1% -5.6% Agriculture 1,558 -10.9% -15.3% 0.8% -4.2% -10.2% -3.4% Mining 1,897 35.8% 35.8% 1.2% 6.0% -2.7% 17.5% Finance 1,066 32.1% 16.0% 0.7% -0.1% -10.1% -5.9% Basic industry 808 51.2% 29.3% 1.2% 2.5% 3.8% 15.2% Consumer 2,472 0.5% -1.8% 0.2% 1.1% -12.9% -13.6% Manufacturing 1,524 7.7% 1.5% -0.2% 0.9% -8.8% -7.2% Infras., utilities & trans 1,009 -6.9% -11.1% -0.7% 0.0% -13.3% -14.1% Australia 6,104 14.5% 5.7% -0.6% 0.1% 1.3% -1.0% H.K. 30,493 33.7% 18.1% -0.3% -1.0% -0.3% -0.1% Japan 22,019 28.2% 10.9% -1.9% -2.2% 4.0% -3.3% Malaysia 12,054 6.4% -1.2% -2.4% -6.2% -6.5% -3.5% Philippines 7,497 4.2% -5.4% -2.0% -4.1% -11.4% -12.4% Singapore 3,428 22.4% 5.9% -2.4% -5.2% -1.5% -0.1% Thailand 1,727 15.0% 10.5% -0.8% -3.0% -4.7% -1.5% U.S. S&P 500 2,735 28.3% 12.5% 0.5% 3.0% 1.6% 1.4% FOREIGN EXCHANGE RATES USD exchange rates: IDR 13,951 6.6% 4.7% -1.5% 0.5% 1.5% 3.0% Euro 0.86 -5.2% -3.9% 0.1% 3.5% 5.5% 3.4% Singapore Dollar 1.34 -3.6% -3.3% -0.1% 1.2% 1.3% 0.4% Thai Baht 32.06 -8.4% -6.0% 0.1% 1.8% 1.9% -1.9% Korean Won 1,075.00 -6.0% -4.2% -0.3% 0.7% -0.5% 1.3% Japanese Yen 109.19 4.6% -1.6% -0.2% -0.3% 3.3% -3.1% IDR cross rates: Euro 16,265 12.2% 9.3% -1.9% -3.4% -3.6% 0.0% 100 Yen 12,840 2.3% 7.1% -0.7% 0.9% -1.0% 6.9% UPCOMING EVENTS AND DATA RELEASES  BI Confidence Index, May data (June 6, 2018)  BI International Reserves, May data (June 7, 2018)  BI Retail Sales Survey, May data (June 9, 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.