INDONESIA ECONOMIC WEEK IN REVIEW1 February 18-22, 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 1.8 percent over the week, in line with major markets in the region.  The Rupiah depreciated against the Euro by 0.2 percent but appreciated against the US dollar and Japanese Yen by 0.3 percent and 0.7 percent, respectively, over the week.  The government raised IDR 8.1 trillion from the issuance of Rupiah-denominated Sharia bonds on February 19.  Bank Indonesia (BI) Board of Governors agreed to hold the BI 7-Day Reverse Repo Rate at 6.00 percent, while also maintaining the Deposit Facility (DF) and Lending Facility (LF) rates at 5.25 percent and 6.75 percent, respectively.  Car sales dropped by 15.4 percent yoy but motorcycle sales grew by 20.6 percent in January 2019.  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.  The Ministry of Finance is to relax the value-added tax (VAT) refund requirements for foreign tourists in an effort to attract 20 million tourist arrivals in 2019.  The Ministry of Finance is in the process of completing a regulation that will provide the legal basis for offering fiscal incentives to business that establish education as well as research and development (R&D) centers. 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 6,501 22 Feb 1.8% 0.5% 8.2% 5.0% Net purchases by foreign investors -0.12 22 Feb IDR, tn 0.2 0.6 4.0 10.7 Exchange rate: USD/IDR 14,079 22 Feb -0.3% -1.0% -3.3% -2.8% Government bonds Yield: 1 year IDR bond 6.7% 22 Feb bps -5.7 -21 -1 -13 Yield: 5-year IDR bond 7.8% 22 Feb bps -8 -27 -28 -25 Yield: 10-year IDR bond 8.1% 22 Feb bps -9 -26 -8 -5 Foreign investor holdings of IDR 932 22 Feb IDR, tn 0.0 29.4 36.9 38.4 government bonds Indonesia USD bonds stripped spread 203 22 Feb bps 2 -2 -26 -34 Asia USD bonds stripped spread 188 22 Feb bps 1 -4 -23 -29 Interest rates IndONIA 5.8% 22 Feb bps -13 77 -15 -13 Spread relative to policy rate -22 22 Feb bps -13 2 -15 -13 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 22-Feb-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,501 20.7% -1.4% 1.8% 0.5% 8.2% 5.0% Agriculture 1,605 -8.2% -3.5% 0.8% -2.6% 10.1% 2.6% Mining 1,940 38.9% -3.8% 5.8% 4.1% 12.0% 9.2% Finance 1,235 52.9% 2.5% 1.5% -0.7% 8.6% 5.1% Basic industry 888 66.4% 16.2% 1.1% -1.6% 8.6% 3.9% Consumer 2,638 7.3% -6.4% 1.3% 0.7% 10.2% 2.7% Manufacturing 1,649 16.5% -0.3% 1.1% -0.8% 7.3% 1.9% Infras., utilities & trans 1,207 11.3% 3.9% 1.8% 4.6% 12.1% 13.4% Australia 6,242 17.1% 3.0% 1.5% 5.4% 7.7% 9.3% H.K. 28,816 26.4% -6.9% 3.3% 6.7% 11.1% 11.5% Japan 21,426 24.7% -1.4% 2.5% 3.9% -1.0% 7.0% Malaysia 11,938 5.4% -8.0% 2.8% 2.7% 2.7% 4.3% Philippines 7,962 10.6% -6.5% 0.7% -0.6% 8.5% 6.6% Singapore 3,270 16.7% -6.3% 0.9% 2.4% 7.1% 6.6% Thailand 1,659 10.4% -7.2% 1.4% 3.6% 3.4% 6.1% U.S. S&P 500 2,793 31.0% 3.3% 0.6% 6.1% 6.1% 11.4% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,079 7.6% 3.0% -0.3% -1.0% -3.3% -2.8% Euro 0.88 -2.3% 8.4% -0.6% 0.3% 0.2% 1.1% Singapore Dollar 1.35 -2.5% 2.2% -0.3% -0.4% -1.3% -0.8% Thai Baht 31.26 -10.7% -1.1% -0.1% -1.7% -5.2% -3.7% Korean Won 1,125 -1.6% 3.8% -0.3% -0.5% -0.5% 0.9% Japanese Yen 110.74 6.0% 3.1% 0.4% 1.2% -2.0% 0.3% IDR cross rates: Euro 15,963 10.1% -4.9% 0.2% -1.2% -3.9% -3.6% 100 Yen 12,712 1.3% -0.2% -0.7% -2.0% -1.3% -3.0% UPCOMING EVENTS AND DATA RELEASES  BPS Consumer Price Index, February data (March 01, 2019)  Nikkei Indonesia Manufacturing PMI, February data (March 01, 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.