Today’s highlights:
The govt. will issue IDR10tn of govt. sukuk in this week’s auction, with the details as follows: SPNS13102025 with indicative yield of 6.40—6.50%, SPNS12012026 with indicative yield 6.55—6.65%, PBS003 with indicative yield of 6.75—6.80%, PBS030 with indicative yield of 6.80—6.85%, PBSG001 with indicative yield of 6.85—6.90%, PBS034 with indicative yield of 7.00—7.10%, and PBS038 with indicative yield of 7.10—7.20%.
Following tariff exemptions for electronics, Trump came up with trade probes for chips and pharma goods. Both studies were expected to be done in 270 days, although Trump’s administration suggested the completion to be sooner. Moving east to Vietnam, the country signed 45 deals with China, covering various topics. From domestic, as part of negotiation with Trump, the govt. planned to invest more in US. O&G and IT sectors were under consideration, while Danantara may be involved in the strategy. On FX Reserves, last month saw another all-time high figure (curr: USD157.1bn, prev: USD154.5bn). The improvement could be associated to revised TD DHE policies, which were effective in Mar.
Last national business day, the dollar index was closed at 99.64 (-0.5%). Rupiah was appreciated by 0.1% at USDIDR at 16,787. The UST yield was down by -11.6bps to 4.37% and 10yr INDOGBR was down by -4.1bps to 7.03% – the spread between the two was at 266bps.
Economy: Trump would conduct trade probes on chips and pharma goods
A few days after the tariff exemptions for electronics, Trump now proceeded trade probes on chips—incl. equipment to make them and products containing them—and pharmaceutical goods—incl. generic and non-generic medicines. Public was given 21 days to give comments on both probes, while the deadline set to finish them was 270 days, although it was expected to finish sooner. Source: Bloomberg
Economy: Indonesia’s govt. planned to invest more in US
According to Ministry of Investment and Downstream Industry, as part of the tariff negotiation with Trump, govt. would inject investment to US. Which industries to invest in remained to be seen, but the govt. mentioned O&G and IT. Pertamina’s subsidiaries had already done the exact same thing, although it could not be verified if the firms would invest this time round. Moreover, the plan would adopt SoE strategy, so Danantara may be involved in it. Source: Kontan
Economy: In Mar, Indonesia’s FX Reserves hit all-time high (curr: USD157.1bn, prev: USD154.5bn)
The main drivers were tax & services revenues and issuances of external govt. borrowing. USD2bn and EUR1.4bn of bonds were issued. Moreover, current FX reserves position was eq. to financing 6.7mo of imports or 6.5mo of imports and payment of govt. external debts. The levels were above the international adequacy standard at ~3mo of imports. The BI viewed that current FX reserve position was ample enough to support external resilience, following well-maintained export prospects, capital and financial surplus prospects, and positive investor perception towards our economy and attractive yields. Source: Bank Indonesia
Research Division
PT Trimegah Sekuritas Indonesia, Tbk.
