INDONESIA ECONOMIC WEEK IN REVIEW1 October 08-12, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose by 0.4 percent over the week, while major markets in the region recorded a decline.  The Rupiah depreciated against the US dollar, Euro and Japanese Yen by 0.1 percent, 0.9 percent and 1.5 percent, respectively, over the week.  The government raised IDR 20 trillion from the issuance of Rupiah-denominated bonds on 9 October.  Central Statistics Agency (BPS) recorded a year-on-year inflation of 2.9 percent in September, lower than 3.2 percent recorded in August  BPS recorded a trade surplus of USD 227 million in September 2018. Exports grew by 1.7 percent yoy to USD 14.8 billion while imports grew by 14.2 percent to USD 14.6 billion.  The government is preparing incentives to support the implementation of the blended finance scheme.  The government will soon hold a meeting to decide on whether it will increase the price of the subsidized Premium- branded gasoline.  The government is to simplify customs valuation to expedite the custom clearance process. 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 5,756 12 Oct 0.4% -1.3% -3.2% -9.2% Net purchases by foreign investors -1.20 12 Oct IDR, tn -5.1 -4.3 -6.8 -57.4 Exchange rate: USD/IDR 15,194 12 Oct 0.1% 2.4% 5.8% 12.2% Government bonds Yield: 1 year IDR bond 7.2% 12 Oct bps 6.0 -2 107 217 Yield: 5-year IDR bond 8.5% 12 Oct bps 33 8 103 253 Yield: 10-year IDR bond 8.9% 12 Oct bps 43 16 114 228 Foreign investor holdings of IDR 850 12 Oct IDR, tn 0.7 13.5 15.0 13.4 government bonds Indonesia USD bonds stripped spread 201 12 Oct bps 13 -9 0 40 Asia USD bonds stripped spread 190 12 Oct bps 9 -6 -6 39 Interest rates JIBOR overnight 5.8% 12 Oct bps 16 84 86 195 Spread relative to policy rate 9 12 Oct bps 16 34 36 45 International reserves 114.8 30 Sep USD, bn -- -3.1 -5.0 -15.3 * 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 12-Oct-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,756 6.9% -2.9% 0.4% -1.3% -3.2% -9.2% Agriculture 1,522 -12.9% -13.7% -1.7% -4.8% 5.5% -5.6% Mining 1,926 37.9% 28.6% -2.4% 3.1% -4.9% 19.3% Finance 1,038 28.5% 1.1% 0.6% -2.0% 0.3% -8.4% Basic industry 750 40.5% 20.4% 0.5% -4.7% -4.0% 7.0% Consumer 2,429 -1.3% -2.6% 2.0% -0.2% -1.9% -15.1% Manufacturing 1,476 4.3% 0.2% 1.1% -1.7% -2.2% -10.2% Infras., utilities & trans 1,033 -4.8% -13.0% 1.8% 3.9% -4.8% -12.2% Australia 6,007 12.7% 2.4% -4.7% -4.5% -5.4% -2.6% H.K. 25,801 13.2% -9.3% -2.9% -2.4% -9.5% -15.4% Japan 22,695 32.1% 8.3% -4.6% 0.1% 0.4% -3.5% Malaysia 11,686 3.2% -4.3% -4.3% -5.6% -2.2% -6.4% Philippines 7,005 -2.7% -16.6% -1.0% -6.8% -5.3% -19.7% Singapore 3,069 9.6% -7.1% -4.4% -1.3% -5.9% -10.5% Thailand 1,696 12.9% -1.0% -1.4% 1.4% 3.4% -4.6% U.S. S&P 500 2,767 29.8% 8.5% -4.1% -4.2% -1.2% 2.6% FOREIGN EXCHANGE RATES USD exchange rates: IDR 15,194 16.1% 12.4% 0.1% 2.4% 5.8% 12.2% Euro 0.86 -4.4% 2.4% -0.6% 0.0% 0.6% 4.2% Singapore Dollar 1.37 -1.1% 1.5% -0.6% -0.2% 0.8% 3.0% Thai Baht 32.70 -6.6% -1.4% -0.2% -0.4% -1.6% 0.8% Korean Won 1,131.40 -1.0% -0.2% 0.1% 0.5% 0.7% 6.6% Japanese Yen 112.32 7.6% 0.1% -1.3% 0.7% -0.4% -0.2% IDR cross rates: Euro 17,633 21.6% 9.8% 0.9% 2.9% 5.3% 8.4% 100 Yen 13,538 7.9% 12.5% 1.5% 1.2% 6.2% 12.7% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia Board of Governors’ Meeting (October 22-23, 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.