INDONESIA D AILY ECONOMIC UPDAT E
                                    Wednesday, 20 February 2019



ECONOMIC HIGHLIGHTS
 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.
 The government is to relax the value added tax (VAT) refund requirements for foreign tourists in
  an effort to attract 20 million tourist arrivals in 2019.



DAILY INDONESIAN FINANCIAL INDICATORS

                                                                                 Change                   Change or total
                                                          Date of                 since
                                                                       Unit
                                             Latest        latest                  last         In last     In last     Year-to-
                                             value         value                 trading        week*       month*       date
                                                                                   day

Stock market
Jakarta Composite Index                         6,513      20 Feb                    0.28%         1.5%         1.0%          5.1%
                  Net purchases by
                                                   0.45    20 Feb      IDR, tn             --       -2.9          0.2           9.9
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia              14,055      20 Feb                    -0.5%         0.2%        -1.1%         -2.9%
                       Bloomberg               14,044      20 Feb                    -0.4%        -0.1%        -1.3%         -2.4%

Government bonds
              Yield: 1 year IDR bond             6.7%      20 Feb         bps           -3.0          -1          -16           -13
              Yield: 5-year IDR bond             7.8%      20 Feb         bps           -4.8           0          -22           -23
             Yield: 10-year IDR bond             8.1%      20 Feb         bps           -6.5           3          -22            -3
       Foreign holdings of IDR bonds              926      19 Feb      IDR, tn             --         -1           22            33
   Indonesia USD bonds strip spread               198      19 Feb         bps           -2.3          -1           -4           -38
        Asia USD bonds strip spread               186      19 Feb         bps           -1.2           0           -5           -31
 Indonesia sovereign CDS: 5yr, mid-
                                                   112     19 Feb          bps          -2.0          -4          -13           -26
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 302     19 Feb          bps          -6.7         -12          -59          -111

Interest rates
                             IndONIA             6.0%      19 Feb          bps             5        -2.9          6.1           7.1
               IndONIA spread relative
                                                   -2.7    19 Feb          bps             5        -2.9          6.1           7.1
                         to policy rate

International reserves                          120.1      31 Jan    USD, bn               --         --         -0.6         -10.1

* One week and month prior to latest observation


SOURCES
Data are taken from the following: the latest Jakarta Stock Exchange and Indonesian government IDR bond yield data are taken from
the Indonesian Stock Exchange (www.idx.co.id). BI IndONIA and IDR mid exchange rates from Bank Indonesia (www.bi.go.id), after
5 pm each day. BI reports international reserves data directly. 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). The CDS premium on 5-
year Indonesian government USD bonds and Indonesian corporate bond spreads are sourced from JPMorgan.