Indonesia
Market Watch
| Close of March 2, 2021 |
Change From | |||
|---|---|---|---|---|
| Govt. Bond Yields | Latest Yield | Previous Day | Previous Week | YTD |
| 2 Year | 4.881 | ▼ 1.0 | ▲ 9.1 | ▲ 103.0 |
| 5 Year | 5.680 | ▼ 0.8 | ▼ 5.7 | ▲ 47.4 |
| 10 Year | 6.579 | ▲ 2.1 | ▼ 0.4 | ▲ 69.3 |
|
* Government bond yield changes are expressed in basis points. |
||||
| Currencies | Latest Rate | Previous Day | Previous Week | YTD |
| IDR per USD | 14,325.000 | ▼ 0.5 | ▼ 1.6 | ▼ 2.0 |
| IDR per JPY | 134.268 | ▼ 0.6 | ▼ 0.3 | ▲ 1.3 |
|
* Exchange rate changes are expressed as a percentage change. |
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| Interest Rates | Latest Rate | Previous Day | Previous Week | YTD |
| 1D INDONIA | 2.793 | 0.0 | ▼ 0.2 | ▼ 24.6 |
| 3M JIBOR | 3.769 | ▼ 0.6 | ▼ 1.9 | ▼ 28.7 |
|
* Interest rate changes are expressed in basis point change. |
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Policy Rates
| Change From | ||||
|---|---|---|---|---|
| Policy Rates | Latest Rate (18-Feb-2021) |
Previous Rate (21-Jan-2021) |
YTD Rate |
|
| Bank Indonesia 7-day Reverse Repo Rate |
3.500 | ▼ 25.0 | ▼ 25.0 | |
|
* Policy rate changes are expressed in basis point change. |
||||
Sovereign Ratings
| Agency | Rating | Outlook | Date | |
|---|---|---|---|---|
| Regional Rating Institutions | ||||
| R&I | BBB+ | stable | 2020-03-17 | |
| RAM | BBB2 | stable | 2019-10-31 | |
| Non-Regional Rating Institutions | ||||
| Fitch | BBB | stable | 2020-08-10 | |
| S&P | BBB | negative | 2020-04-17 | |
NEWS HIGHLIGHTS
- BI Cuts the Interest Rate to 3.50% in February Meeting
- Minister forecasts economy to rebound to 4.5-5.5 percent in 2021
- Gov't Moves to Address Lingering Demand Weakness as Trade Data Underwhelm
- Indonesia's Sovereign Wealth Fund Unveils Initial Strategy to Attract Investors
- Indonesia's foreign debt recorded at US$417.5 billion in Q4 2020
Read full index for News and Commentary
BOND ISSUANCES
- Size of LCY Bond Market
- Size of LCY Bond Market in % of GDP
- Monthly Bonds Outstanding in USD
- FCY Bonds Outstanding
- Breakdown of LCY Bond Market Issuance
- G3 Currency Bond Issuance
- Government Securities Maturity Profile - LCY
- Corporate Securities Maturity Profile - LCY
- Investor Profile - Government Bonds
- Foreign Holdings in LCY Government Bonds
- Trading Volume
- Bonds Turnover Ratio
- Interest Rate Spread - 2yrs vs 10yrs - LCY Bond
- Yield Volatility - 10yr LCY Bonds
- Bid-Ask Spreads (Survey data)
- Government Bond Market Structural Issues
- Corporate Bond Market Structural Issues
ASEAN+3 Bond Market Guide 2017: Indonesia
ASEAN+3 Bond Market Guide is a comprehensive explanation of the region's bond markets. It provides information such as the history, legal and regulatory framework, specific characteristics of the market, trading and transaction (including settlement systems), and other relevant information. The Bond Market Guide 2017 for Indonesia is an outcome of the support and contributions of ASEAN+3 Bond Market Forum members and experts, particularly from Indonesia. View Report
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Market Summary
Yield Movements
Local currency (LCY) government bond yields in Indonesia declined for most maturities between 31 August and 30 October. The overall trend of declining yields was driven by expectations that Bank Indonesia would continue to maintain an easy monetary policy stance amid low inflation and a weak economic outlook. The coronavirus disease (COVID-19) outbreak in Indonesia has taken a toll on economic growth. A resurgence in the number of cases led the government to re-enforce social restrictions in September, further dampening investor sentiment in the bond market. In October however, investor interest picked up, leading to capital inflows for the first time since July, buoyed by the passage of the Omnibus Bill on Job Creation that is expected to improve investment climate in Indonesia.
Size and Composition
The LCY bond market in Indonesia continued to expand to reach a size of IDR3,940.6 trillion (USD264.8 billion) at the end of September. Overall growth accelerated to 9.9% quarter-on-quarter in the third quarter of 2020 after rising 7.8% quarter-on-quarter in the second quarter. The faster growth stemmed largely from the expansion in government bonds, particularly Treasury bills and bonds, due to the government's increased borrowing needs to support its stimulus measures and recovery efforts amid the COVID-19 pandemic. Corporate bonds also contributed to growth, albeit to a lesser extent. On the other hand, the stock of central bank bills and bonds contracted during the review period. On a year-on-year basis, growth in the LCY bond market of Indonesia quickened to 22.4% in the third quarter from 16.8% in the previous quarter, making it the fastest-growing bond market in the region.
Policy, Institutional and Regulatory Developments
In September, the Indonesian Parliament approved the 2021 state budget, which calls for a deficit equivalent to 5.7% of GDP. The 2021 state budget estimates revenue will reach IDR1,743.7 trillion, while state spending is expected to total IDR2,750.0 trillion. The underlying macroeconomic assumptions for the 2021 state budget include (i) economic growth of 5.0%, (ii) average inflation of 3.0%, (iii) an exchange rate of IDR14,600 per USD1, (iv) an average 10-year bond yield of 7.29%, and (v) Indonesian crude oil price of USD45 per barrel.