INDONESIA ECONOMIC WEEK IN REVIEW1 August 27-31, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 0.8 percent over the week, in line with major markets in the region.  The Rupiah depreciated against the US Dollar, Euro and Japanese Yen by 0.4 percent, 1.4 percent and 0.8 percent, respectively, over the week.  The Government raised IDR 20.0 trillion from the issuance of Rupiah-denominated bonds on 29 August.  Central Statistics Agency (BPS) recorded a yoy inflation of 3.20 percent in August, slightly higher than 3.18 percent recorded in July.  The Financial Services Authority (OJK) recorded the non-performing loan (NPL) of the banking industry until July 2018 improved to 2.7 percent, better than 3.0 percent recorded in July 2017.  The government will postpone the infrastructure projects with inadequate local content in an attempt to manage imports.  The government is to revise the regulation on franchise business, specifically on the outlet rules and domestic content requirements. 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 6,018 31 Aug 0.8% 1.4% 0.6% -5.1% Net purchases by foreign investors -0.43 31 Aug IDR, tn 0.7 -1.6 -10.6 -50.5 Exchange rate: USD/IDR 14,711 31 Aug 0.4% 2.1% 5.4% 8.6% Government bonds Yield: 1 year IDR bond 6.2% 31 Aug bps 5.4 -31 -14 115 Yield: 5-year IDR bond 7.9% 31 Aug bps 13 24 97 191 Yield: 10-year IDR bond 8.2% 31 Aug bps 11 15 72 158 Foreign investor holdings of IDR 856 31 Aug IDR, tn 8.3 16.5 22.0 18.8 government bonds Indonesia USD bonds stripped spread 191 31 Aug bps -6 9 -10 30 Asia USD bonds stripped spread 186 31 Aug bps -3 9 -5 35 Interest rates JIBOR overnight 5.4% 31 Aug bps -3 40 108 151 Spread relative to policy rate -10 31 Aug bps -3 15 33 26 International reserves 118.3 31 Jul USD, bn -- -1.5 -6.6 -11.9 * 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 31-Aug-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,018 11.7% 2.6% 0.8% 1.4% 0.6% -5.1% Agriculture 1,645 -5.9% -4.0% 0.7% 14.0% 5.6% 2.0% Mining 1,989 42.4% 32.1% 0.3% -5.9% 4.9% 23.2% Finance 1,091 35.0% 10.3% 0.0% 4.1% 2.3% -3.8% Basic industry 834 56.2% 39.3% 0.7% 5.2% 3.3% 19.0% Consumer 2,438 -0.9% -2.3% 1.4% -0.4% -1.4% -14.8% Manufacturing 1,531 8.2% 5.3% 0.8% 1.2% 0.5% -6.8% Infras., utilities & trans 1,037 -4.4% -15.8% 4.7% 0.5% 2.7% -11.8% Australia 6,428 20.6% 11.3% 1.1% 1.0% 5.3% 4.2% H.K. 27,889 22.3% -0.3% 0.8% -2.4% -8.5% -8.6% Japan 22,865 33.1% 16.4% 1.2% 1.4% 3.1% -2.7% Malaysia 12,526 10.6% 2.0% 0.0% 0.9% 3.9% 0.3% Philippines 7,856 9.1% -1.3% 1.1% 2.4% 3.0% -10.0% Singapore 3,213 14.7% -1.9% 0.0% -3.2% -6.2% -6.3% Thailand 1,722 14.6% 6.5% 1.0% 1.2% -0.3% -3.2% U.S. S&P 500 2,902 36.1% 17.4% 0.9% 3.0% 6.1% 7.6% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,711 12.5% 10.2% 0.4% 2.1% 5.4% 8.6% Euro 0.86 -5.1% 1.5% -0.5% 0.7% 0.2% 3.6% Singapore Dollar 1.37 -1.4% 0.7% -0.3% 0.5% 2.2% 2.6% Thai Baht 32.75 -6.5% -1.4% -0.2% -1.7% 2.2% 1.0% Korean Won 1,112.90 -2.6% -1.3% -0.5% -0.5% 3.5% 4.9% Japanese Yen 110.80 6.1% 0.3% -0.5% -0.5% 1.5% -1.6% IDR cross rates: Euro 17,157 18.3% 8.2% 1.4% 1.7% 5.5% 5.5% 100 Yen 13,256 5.6% 9.7% 0.8% 2.1% 3.2% 10.4% UPCOMING EVENTS AND DATA RELEASES  BI Consumer Confidence Index, August data (September 5, 2018)  BI Retail Sales Survey, August data (September 5, 2018)  Foreign reserves, August data (September 7, 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.