Rupiah asset classes started the week on a mixed note, with Rupiah against USD and JCI rising further, while INDOGB mixed. The Jakarta Composite Index (JCI) rose by +0.49% to 7,141.09, building on last week s strong performance (+3.96% WoW; +2.06% YTD). Foreign investors recorded a net inflow of Rp367.8bn (vs. Rp528.3bn prior), bringing the cumulative weekly inflow to Rp5.07tn and narrowing the YTD net outflow to Rp48.63tn. Daily trading turnover remained stable at Rp14.8tn (vs. Rp16.6tn weekly average; Rp12.5tn YTD average). Across the region, Asian equities remained under pressure. China s Shanghai Composite was little changed at 3,367.58 (vs. -0.40% prior; -0.57% YTD). Japan s Nikkei 225 fell -0.68% to 37,498.63 (vs. -0.02% prior; -4.61% YTD), marking its third consecutive day of losses, as investor sentiment was dampened by concerns over the potential financial market implications of Moody s US credit rating downgrade.
The Indonesian government bond (INDOGB) market traded mixed on Monday. The 5-yr and 10-yr benchmarks (FR104 and FR103) posted modest gains, while yields on longer-tenor bonds (15-yr and 20-yr) rose slightly. Foreign inflows continued, although the pace moderated to Rp66bn (vs. Rp4.23tn previously; Rp2.72tn cumulative inflow last week), based on CTP PLTE data. According to Bloomberg, the 5-yr FR104 traded at 100.01 (+0.06%, yield: 6.49%, -1.40 bps), the 10-yr FR103 at 99.21 (+0.07%, yield: 6.86%, -0.90 bps), the 15-yr FR106 at 101.15 (-0.01%, yield: 7.00%, +0.10 bps), and the 20-yr FR107 at 101.12 (-0.04%, yield: 7.02%, +0.40 bps). The 10-yr USD global bond due in Mar-2031 edged down to 84.67 (-0.36%, yield: 4.91%, +7.00 bps). Meanwhile, Indonesia s 5-yr CDS widened to 84.22 (+1.45 bps), and the rupiah continued to strengthen against USD by +0.06% to Rp16,430/USD (vs. +0.48% prior) bringing the weekly gain to +0.45%, although the currency remains -2.00% YTD.
According to IDX s OTC trading report, Indonesian rupiah government bond trading activity slowed on Monday (19-May), ahead of the government bond auction scheduled for Tuesday. Trading volume sharply contracted to Rp13.7tn (vs. Rp22.3tn on 16-May), falling well below the current week s average daily volume of Rp30.0tn, the 2025 year-to-date (YTD) daily average of Rp27.7tn, and the 2024 daily average of Rp21.7tn. The 10-yr FR0103 series (maturing on 15-Jul-35) remained the most actively traded government bond, although its volume halved to Rp3.6tn (vs. Rp6.3tn on the previous trading day). Its price declined to 98.99 (-0.20%), nudging the yield up to 6.89% (+2.79 bps). Trailing this, the 0.9-yr FR0086 series (maturing on 15-Apr-26) recorded a trading volume of Rp2.4tn. The bond s price edged up to 99.50 (+0.09%), compressing the yield to 6.07% (-9.85 bps).
Based on the latest data from the Debt Management Office (DMO) as of 14 May (reflecting trades through 8 May), foreign ownership in Indonesian government bonds remained stable at Rp907tn, representing 14.38% of total outstanding. On a year-to-date basis, Bank Indonesia led the net purchases with Rp72.7tn, followed by onshore banks (Rp55.3tn), insurance and pension funds (Rp48.1tn), foreign investors (Rp30.3tn), other investors (Rp27.6tn), retail investors (Rp26.4tn), and mutual funds (Rp6tn). These figures, which include both primary and secondary market activity and are adjusted for maturities, reflect strong and broad-based demand across investor segments.
The government will hold a conventional bond auction on 20 May 2025, targeting Rp26tn with a maximum issuance of up to 150% of the target, consistent with the previous auction. The instruments on offer include two SPN series (3-month and 1-year tenors) and six fixed-rate bond series 5.2yr-FR0104, 10.2yr-FR0103, 15.2yr-FR0106, 20.2yr-FR0107, 29.2yr-FR0102, and 39.2yr-FR0105. Based on our model, we expect demand to remain firm but slightly softer than the prior auction, with total incoming bids likely in the range of Rp74tn 84tn, reflecting continued healthy investor interest.
Domestic Corp Bond Market
On the corporate side, according to IDX s OTC trading report, trading activity also softened on Monday (19-May), with volume decreasing to Rp1.6tn (vs. Rp2.2tn on 16-May). The figure remained below the current week s average daily volume of Rp3.5tn, the 2025 YTD daily average of Rp3.5tn, and the 2024 daily average of Rp2.05tn.
The OPPM03B series (maturing on 4-Nov-25), rated idA+, led corporate bond trading with a notable volume of Rp387bn. Its price climbed to 101.45 (+1.44%), sharply driving the yield lower to 7.25% (-322.22 bps). Close behind, the SIMORA02ACN1 series (maturing on 13-Jul-26), rated idA+(sy), posted a trading volume of Rp228bn. The bond s price declined to 102.02 (-1.44%), lifting the yield significantly to 8.14% (+131.83 bps).
Pefindo has affirmed idBBB+ ratings for PT PP Presisi Tbk (PPRE) and its Shelf-Registered Bond I/2022. Outlook for the corporate rating is stable. According to Pefindo, the rating reflects the following factors: 1) PPRE s growing opportunities in the mining sector; 2) diversified business segment; and 3) above average market position. However, the rating is constrained by its exposure to the fluctuation of nickel price and moderate capital structure.
Handy Yunianto
