INDONESIA ECONOMIC WEEK IN REVIEW1 September 17-21, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index rose 0.4 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the US Dollar and Japanese Yen by 0.1 percent and 0.7 percent, respectively, but depreciated against the Euro by 0.7 percent, over the week.  The government raised IDR 4.9 trillion from the issuance of Rupiah-denominated Sharia bonds on 18 September.  The Ministry of Trade will require the imports of wheels, iron and steel, alcoholic beverages and textile products to be done via Logistic Bonded Center (PLB), in an effort to prevent smuggling.  The government is revising a regulation on tax holidays to increase the number of beneficiaries that are eligible for the fiscal incentives as there are only 17 industries covering 153 beneficiaries in the current list.  External debt grew at 4.8 percent yoy to USD 358.0 billion at the end of July, consisting of government and central bank external debt of USD 180.8 billion, as well as private sector, including state-owned enterprises external debt of USD 177.1 billion.  The government will require exporters to convert minimum 50 percent of their foreign-denominated export proceeds (DHE) to Rupiah. 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 5,958 21 Sep 0.4% 0.2% 2.3% -6.0% Net purchases by foreign investors 1.13 21 Sep IDR, tn 1.9 -0.6 -5.9 -52.2 Exchange rate: USD/IDR 14,824 21 Sep -0.1% 1.8% 5.1% 9.5% Government bonds Yield: 1 year IDR bond 7.2% 21 Sep bps 6.3 112 63 219 Yield: 5-year IDR bond 8.2% 21 Sep bps -23 44 87 216 Yield: 10-year IDR bond 8.4% 21 Sep bps -28 37 62 181 Foreign investor holdings of IDR 841 21 Sep IDR, tn 5.0 -6.3 1.5 3.6 government bonds Indonesia USD bonds stripped spread 189 21 Sep bps -8 -8 -19 28 Asia USD bonds stripped spread 183 21 Sep bps -5 -7 -17 32 Interest rates JIBOR overnight 5.4% 21 Sep bps -3 44 99 155 Spread relative to policy rate -6 21 Sep bps -3 19 24 30 International reserves 117.9 31 Aug USD, bn -- -0.4 -5.0 -12.3 * 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 21-Sep-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,958 10.6% 0.9% 0.4% 0.2% 2.3% -6.0% Agriculture 1,586 -9.3% -11.5% -2.4% -1.8% 6.9% -1.7% Mining 1,954 39.9% 32.6% 1.9% -2.2% -0.4% 21.0% Finance 1,076 33.2% 8.6% 0.7% 1.4% 4.6% -5.1% Basic industry 822 53.9% 34.0% 2.7% -0.2% 3.7% 17.2% Consumer 2,491 1.3% -2.7% 0.1% 3.0% 6.7% -12.9% Manufacturing 1,544 9.1% 4.2% 0.9% 1.2% 5.5% -6.0% Infras., utilities & trans 1,027 -5.3% -16.0% -0.7% 1.6% 0.2% -12.6% Australia 6,305 18.3% 10.3% 0.5% -1.2% -0.3% 2.3% H.K. 27,954 22.6% -0.6% 2.4% 0.7% -4.7% -8.4% Japan 23,870 39.0% 17.3% 3.4% 7.4% 6.0% 1.5% Malaysia 12,380 9.3% 0.8% -0.1% -0.8% 5.3% -0.9% Philippines 7,383 2.6% -10.9% -0.4% -1.6% 4.5% -15.4% Singapore 3,218 14.9% 0.1% 1.8% 0.6% -2.1% -6.2% Thailand 1,756 16.9% 5.1% 2.0% 3.6% 7.4% -1.3% U.S. S&P 500 2,930 37.4% 17.2% 0.8% 2.3% 6.3% 8.7% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,824 13.3% 11.7% -0.1% 1.8% 5.1% 9.5% Euro 0.85 -5.9% 1.2% -0.6% -2.2% -0.9% 2.6% Singapore Dollar 1.36 -1.8% 0.9% -0.5% -0.2% 0.4% 2.2% Thai Baht 32.40 -7.5% -2.2% -0.6% -1.3% -1.6% -0.1% Korean Won 1,115.30 -2.4% -1.5% -0.1% -0.3% 0.7% 5.1% Japanese Yen 112.70 7.9% 0.1% 0.8% 2.3% 2.3% 0.1% IDR cross rates: Euro 17,463 20.4% 9.5% 0.7% 4.1% 6.7% 7.4% 100 Yen 13,167 4.9% 10.6% -0.7% -0.5% 2.7% 9.6% UPCOMING EVENTS AND DATA RELEASES  BPS Consumer Price Index, September data (October 1, 2018)  Nikkei Indonesia Manufacturing PMI, September data (October 1, 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.