INDONESIA ECONOMIC WEEK IN REVIEW1 June 18 - 22, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index declined by 2.9 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the Euro by 0.2 percent, while depreciated against the US Dollar and Japanese Yen by 1.4 percent and 1.2 percent, respectively, over the week.  The Ministry of Finance’s Taxation Directorate General has signed the Bilateral Competent Authority Agreement (BCAA) Country by Country (CbC) with the Internal Revenue Services of the United States, enabling the automatic exchange of transfer pricing data.  Bank Indonesia (BI) reported that the external debt at the end of April 2018 amounted to USD 356.9 billion, consisting of government and central bank external debt of USD 183.8 billion and private sector (including state- owned enterprises) external debt of USD 173.1 billion. The external debt grew 7.6 percent year-on-year, slower than the previous month’s growth of 8.8 percent, as both public and private sector external debt growth slowed.  Central Statistics Agency (BPS) recorded a trade deficit of USD 1.5 billion in May 2018. Exports grew by 12.5 percent yoy to USD 16.2 billion while imports grew by 28.1 percent yoy to USD 17.6 billion. 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 5,822 22 Jun -2.9% 1.2% -6.3% -8.2% Net purchases by foreign investors -0.97 22 Jun IDR, tn -7.1 -5.9 -28.1 -48.1 Exchange rate: USD/IDR 14,102 22 Jun 1.4% -0.6% 2.3% 4.1% Government bonds Yield: 1 year IDR bond 6.6% 22 Jun bps 30.3 25 137 156 Yield: 5-year IDR bond 7.3% 22 Jun bps 28 1 89 71 Yield: 10-year IDR bond 7.8% 22 Jun bps 27 -9 75 177 Foreign investor holdings of IDR 839 22 Jun IDR, tn -5.9 11.7 -4.4 2.1 government bonds Indonesia USD bonds stripped spread 208 22 Jun bps 4 12 26 47 Asia USD bonds stripped spread 200 22 Jun bps 5 14 27 49 Interest rates JIBOR overnight 4.4% 22 Jun bps -161 33 47 56 Spread relative to policy rate -30 22 Jun bps -161 8 -3 6 International reserves 122.9 31 May USD, bn -- -1.9 -5.1 -7.3 * 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 22-Jun-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,822 8.1% -0.1% -2.9% 1.2% -6.3% -8.2% Agriculture 1,483 -15.2% -17.7% -3.4% -3.5% -10.8% -8.1% Mining 1,961 40.4% 39.6% 0.6% 3.9% 7.6% 21.4% Finance 1,029 27.4% 8.3% -2.9% 3.3% -10.7% -9.3% Basic industry 793 48.5% 28.1% -2.1% 3.6% 8.2% 13.1% Consumer 2,334 -5.1% -8.6% -4.3% -1.3% -10.3% -18.4% Manufacturing 1,464 3.4% -3.4% -3.5% -0.1% -4.9% -10.9% Infras., utilities & trans 1,025 -5.5% -12.7% -1.5% 0.0% -4.2% -12.8% Australia 6,322 18.6% 10.1% 1.9% 2.8% 6.6% 2.5% H.K. 29,339 28.7% 14.3% -3.2% -6.1% -3.2% -3.9% Japan 22,555 31.3% 12.2% -1.3% -1.8% 9.4% -4.0% Malaysia 11,759 3.8% -4.2% -3.3% -7.0% -8.5% -5.8% Philippines 7,098 -1.4% -9.7% -5.7% -7.2% -10.9% -18.6% Singapore 3,287 17.4% 2.2% -2.1% -7.2% -3.9% -4.2% Thailand 1,634 8.8% 3.4% -4.1% -7.2% -8.9% -8.1% U.S. S&P 500 2,755 29.2% 13.2% -0.9% 1.1% 6.4% 2.2% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,102 7.8% 5.9% 1.4% -0.5% 2.3% 4.1% Euro 0.86 -5.0% -4.1% -0.4% 1.3% 6.0% 3.6% Singapore Dollar 1.36 -2.2% -2.3% 1.6% 1.4% 3.3% 1.8% Thai Baht 32.92 -6.0% -3.1% 1.7% 2.5% 5.3% 1.5% Korean Won 1,107.40 -3.1% -2.9% 0.9% 2.0% 2.3% 4.4% Japanese Yen 110.15 5.5% -0.8% -0.3% -0.8% 4.9% -2.1% IDR cross rates: Euro 16,365 12.9% 10.5% -0.2% -2.0% -3.7% 0.6% 100 Yen 12,817 2.1% 7.2% 1.2% 0.3% -2.5% 6.7% UPCOMING EVENTS AND DATA RELEASES  BPS Consumer Price Index, June data (July 2, 2018)  Nikkei Indonesia Manufacturing PMI, June data (July 2, 2018)  BI Confidence Index, June data (July 5, 2018)  BI International Reserves, June data (July 6, 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.