INDONESIA ECONOMIC WEEK IN REVIEW1 October 01-05, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index declined by 4.1 percent over the week, in line with major markets in the region.  The Rupiah appreciated against the US dollar, Euro and Japanese Yen by 1.7 percent, 0.5 percent and 1.4 percent, respectively, over the week.  The government raised IDR 5.1 trillion from the issuance of Rupiah-denominated Sharia bonds on 2 October.  Central Statistics Agency (BPS) recorded a year-on-year inflation of 2.9 percent in September, lower than 3.2 percent recorded in August  The Ministry of Trade has released a regulation that exempts the oil and gas exporters from the letter of credit rules.  Foreign exchange reserves stood at USD 114.8 billion at the end of September 2018, USD 3.1 billion lower than the August level.  Bank Indonesia (BI) reported that the Consumer Confidence Index rose from 121.6 in August to 122.4 in September, mainly caused by greater confidence in the employment, as well as stronger buying conditions for durable goods. 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 5,732 05 Oct -4.1% -2.9% 0.7% -9.6% Net purchases by foreign investors -1.26 05 Oct IDR, tn -2.4 -4.0 -4.1 -54.5 Exchange rate: USD/IDR 15,182 05 Oct 1.7% 2.3% 5.4% 12.1% Government bonds Yield: 1 year IDR bond 7.1% 05 Oct bps -4.4 75 69 211 Yield: 5-year IDR bond 8.2% 05 Oct bps 11 1 56 220 Yield: 10-year IDR bond 8.4% 05 Oct bps 12 4 48 185 Foreign investor holdings of IDR 850 05 Oct IDR, tn -1.1 0.8 18.1 12.8 government bonds Indonesia USD bonds stripped spread 188 05 Oct bps 6 -19 -30 27 Asia USD bonds stripped spread 181 05 Oct bps 5 -14 -27 30 Interest rates JIBOR overnight 5.7% 05 Oct bps 3 68 76 178 Spread relative to policy rate -7 05 Oct bps 3 18 26 28 International reserves 114.8 30 Sep USD, bn -- -3.1 -5.0 -15.3 * 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 05-Oct-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,732 6.4% -2.9% -4.1% -2.9% 0.7% -9.6% Agriculture 1,548 -11.4% -13.1% -2.9% -4.3% 8.7% -4.0% Mining 1,973 41.2% 36.0% 0.6% 2.3% 2.4% 22.2% Finance 1,032 27.8% 2.1% -4.1% -3.8% 5.1% -8.9% Basic industry 747 39.9% 21.5% -8.9% -6.4% 2.1% 6.5% Consumer 2,381 -3.2% -5.6% -5.0% -1.8% -1.0% -16.8% Manufacturing 1,460 3.1% -0.8% -5.9% -2.8% 1.2% -11.2% Infras., utilities & trans 1,015 -6.5% -16.0% -2.4% 0.2% -2.6% -13.7% Australia 6,301 18.2% 10.2% -0.4% -1.5% -0.9% 2.2% H.K. 26,573 16.5% -6.4% -4.4% -5.0% -6.2% -12.9% Japan 23,784 38.5% 15.3% -1.4% 4.8% 9.2% 1.2% Malaysia 12,304 8.6% 0.8% -0.3% -1.4% 6.1% -1.5% Philippines 7,078 -1.7% -14.7% -2.7% -10.2% -1.5% -18.9% Singapore 3,210 14.6% -1.6% -1.5% 0.0% 0.6% -6.4% Thailand 1,721 14.5% 1.8% -2.0% 0.4% 7.4% -3.3% U.S. S&P 500 2,886 35.4% 13.1% -1.0% -0.4% 4.6% 7.0% FOREIGN EXCHANGE RATES USD exchange rates: IDR 15,182 16.1% 12.6% 1.7% 2.3% 5.4% 12.1% Euro 0.87 -3.9% 2.1% 0.6% 0.5% 1.9% 4.9% Singapore Dollar 1.38 -0.5% 1.3% 1.1% 0.6% 1.2% 3.6% Thai Baht 32.77 -6.4% -1.8% 1.1% 0.1% -1.3% 1.0% Korean Won 1,130.40 -1.1% -1.3% 1.9% 1.4% 1.3% 6.5% Japanese Yen 113.83 9.0% 1.0% 0.4% 2.1% 2.9% 1.1% IDR cross rates: Euro 17,475 20.5% 10.2% 0.5% 1.5% 3.8% 7.4% 100 Yen 13,332 6.2% 11.5% 1.4% -0.2% 2.4% 11.0% UPCOMING EVENTS AND DATA RELEASES  Export and Import Report, September data (October 15, 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.