INDONESIA ECONOMIC WEEK IN REVIEW1 January 14-18, 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose by 1.4 percent over the week, in line with major markets in the region.  The Rupiah depreciated against the US dollar by 0.8 percent, but appreciated against Euro and Japanese Yen by 0.3 percent and 0.2 percent, respectively, over the week.  The government raised IDR 27.75 trillion from the issuance of Rupiah-denominated bonds on 15 January.  Statistics Indonesia (BPS) recorded a poverty rate of 9.66 percent in September 2018, down from 9.82 percent recorded in March.  BPS reported a trade deficit of USD 1.1 billion in December, bringing the annual 2018 trade deficit to USD 8.6 billion.  External debt grew by 7.0 percent yoy to USD 372.9 billion at the end of November 2018, consisting of government and central bank external debt of USD 183.5 billion, as well as private sector, including state-owned enterprises, external debt of USD 189.3 billion.  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. 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 6,448 18 Jan 1.4% 6.0% 10.5% 4.3% Net purchases by foreign investors 0.93 18 Jan IDR, tn 6.1 7.7 14.9 9.3 Exchange rate: USD/IDR 14,182 18 Jan 0.8% -2.3% -6.8% -2.0% Government bonds Yield: 1 year IDR bond 6.9% 18 Jan bps 1.3 -1 -27 10 Yield: 5-year IDR bond 8.0% 18 Jan bps 3 -9 -53 2 Yield: 10-year IDR bond 8.3% 18 Jan bps 13 4 -50 19 Foreign investor holdings of IDR 904 18 Jan IDR, tn 1.9 11.3 54.4 10.9 government bonds Indonesia USD bonds stripped spread 202 18 Jan bps -8 -17 -2 -35 Asia USD bonds stripped spread 192 18 Jan bps -9 -14 1 -26 Interest rates IndONIA 5.9% 18 Jan bps 1 91 15 1 Spread relative to policy rate -9 18 Jan bps 1 16 -10 1 International reserves 120.7 31 Dec USD, bn -- 3.4 5.8 -9.5 * 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 18-Jan-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,448 19.7% -0.4% 1.4% 6.0% 10.5% 4.3% Agriculture 1,583 -9.4% -2.7% -0.9% 3.5% 0.6% 2.0% Mining 1,881 34.6% 2.7% 2.9% 9.4% -1.5% 7.6% Finance 1,234 52.8% 7.2% 2.5% 6.6% 17.1% 5.1% Basic industry 890 66.6% 25.9% 0.9% 7.3% 17.5% 5.2% Consumer 2,607 6.0% -9.9% -0.8% 4.9% 5.5% 1.1% Manufacturing 1,659 17.2% -0.1% 0.2% 5.1% 10.0% 2.6% Infras., utilities & trans 1,149 6.0% -2.7% 3.1% 9.4% 9.8% 8.2% Australia 5,941 11.4% -3.1% 1.8% 4.9% -1.7% 5.6% H.K. 27,091 18.8% -15.7% 1.6% 4.9% 6.0% 7.8% Japan 20,666 20.3% -13.0% 1.5% -2.1% -8.3% 5.6% Malaysia 11,530 1.8% -10.0% 0.3% 4.1% -2.3% 2.0% Philippines 8,047 11.8% -8.8% 1.8% 8.4% 12.5% 7.4% Singapore 3,224 15.1% -8.4% 0.8% 5.9% 5.3% 6.1% Thailand 1,584 5.4% -12.9% -0.8% 0.0% -5.9% 1.1% U.S. S&P 500 2,671 25.3% -4.6% 2.9% 4.9% -3.5% 6.4% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,182 8.4% 6.1% 0.8% -2.3% -6.8% -2.0% Euro 0.88 -3.0% 7.3% 1.1% -0.2% 0.6% 0.0% Singapore Dollar 1.36 -2.4% 2.3% 0.3% -1.2% -1.7% -0.7% Thai Baht 31.68 -9.5% -0.9% -0.7% -3.2% -2.9% -2.1% Korean Won 1,122 -1.9% 4.8% 0.5% -0.7% -0.9% 0.3% Japanese Yen 109.36 4.7% -1.7% 1.0% -2.8% -2.7% 1.4% IDR cross rates: Euro 16,161 11.5% -0.8% -0.3% -2.0% -7.3% -2.4% 100 Yen 12,970 3.3% 8.0% -0.2% 0.6% -4.2% -1.9% UPCOMING EVENTS AND DATA RELEASES  Broad Money (M2) Report, December data (January 31, 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.