As expected, the total incoming bids in the 3-Jun government bond auction declined but remained solid at Rp77.2tn, which was well above the Rp26tn target but lower than the Rp108.3tn in the previous auction on 20-May and the Rp72.9tn average incoming bids per auction YTD. This was in line with our forecast range of Rp75tn-85tn.
Investor interest remained concentrated in the benchmark 5.1-year FR104 and 10.1-year FR103 series, which attracted Rp28.9tn and Rp27tn in bids, respectively accounting for a combined 72.4% of the total demand; additionally, these figures compare to Rp46.7tn and Rp39.3tn in the prior auction, and Rp33.8tn and Rp19tn average bids per auction year-to-date (YTD). They were followed by the 15.2-yr FR106, 1-yr SPN, and 20.2-yr FR107 series, which attracted bids worth Rp6.7tn, Rp5.4tn, and Rp3.9tn (vs. Rp7.5tn, Rp5.2tn, and Rp4.8tn bids in the previous bond auction) or contributed 8.7%, 7%, and 5.1% of the total incoming bids, respectively. Onshore demand still dominated the bids at Rp77.2tn (83.3% of total), lowering from Rp90tn in the last auction. Meanwhile, offshore bids also declined, going down to Rp15.5tn (falling by 15.5%), but the awarded-to-bid ratio for foreign investors decreased slightly to 22.9% compared to 23% previously, and it was still below the YTD average of 38.7%.
The government issued Rp28tn in the 3-Jun auction higher than the initial target of Rp26tn and the same as the previous auction s issuance. The blended weighted cost of funds was relatively flat at 6.76% (from 6.75% previously), while the average issuance tenor extended to 12.41 years (vs. 11.05 years in the last auction), indicating strong demand for longer-dated bonds. We will get more details on the investor type breakdown from the bond fund flow data on the settlement date (5-Jun). YTD, onshore banks have been the largest type of net buyer in the primary market, absorbing Rp102.6tn (40.4% of issuance), followed by foreign investors (25.3%) and pension & insurance institutions (13.5%). YTD, the government has issued a total of Rp593tn gross, reaching 49.7% of our full-year 2025 bond issuance target, based on a -2.60% GDP budget deficit assumption.
INDOGB rallied following the latest bond auction, except for the longest tenor of the benchmark series, i.e., the 20-yr tenor. Foreign investors continued as net buyers, booking +Rp4.02tn of inflows on Tuesday (vs. a net buy of +Rp1.31tn the day before), based on the CTP PLTE data. According to Bloomberg, the 5-yr FR104 benchmark series was trading at 100.29 (+0.07%) or yielded 6.43% (-1.60 bps), the 10-yr FR103 at 99.42 (+0.17%) or yielded 6.83% (-2.20 bps), the 15-yr FR106 at 101.07 (+0.03%) or yielded 7.01% (-0.40 bps), and the 20-yr FR107 price fell to 101.07 (-0.03%) or yielded up to 7.02% (+0.30 bps). Regarding the 10-yr RoI USD global bond that will mature in Mar-2031, its price was flat at 85.23, and its yield went up slightly to 4.81% (+0.10 bps), while the 5-yr CDS narrowed to 78.97 (-0.59 bps). Meanwhile, the rupiah weakened against the USD by -0.25% to Rp16,300/USD, thus reducing the previous returns and bringing the YTD depreciation to -1.17%.
According to IDX s OTC trading report, Indonesian rupiah government bond trading surged on Tuesday (3-Jun), with volume climbing to Rp42.4tn (vs. Rp31.6tn on 2-Jun), supported by the robust demand on government bond auction held on the same day. The figure exceeded the prior week s average daily trading volume of Rp28.8tn, the 2025 year-to-date (YTD) daily average of Rp28.7tn, and remained well above the 2024 daily average of Rp21.7tn. The 10-yr FR0103 series (maturing on 15-Jul-35) continued to lead the market as the most actively traded government bond, with trading volume surging to Rp13.2tn (vs. Rp5.5tn on the previous day). Its price edged down to 100.75 (-0.05%), nudging the yield slightly higher to 6.65% (+0.68 bps). Close behind, the 5-yr FR0104 series (maturing on 15-Jul-30) posted a trading volume of Rp5.9tn (vs. Rp2.9tn previously). The bond s price ticked up to 100.35 (+0.20%), sending the yield lower to 6.42% (-4.64 bps).
The latest DMO bond flow data is as of 28-May (reflecting trading on 26-May), wherein foreign ownership in government bonds increased further to Rp926.3tn or 14.60% of the total outstanding. Year-to-date, Bank Indonesia has been the biggest net buyer of government bonds (amounting to +Rp84tn), followed by onshore banks (+Rp60.1tn), insurance and pension funds (+Rp51tn), foreign investors (+Rp49.6tn), other investors (+Rp28.5tn), retail investors (+Rp25.9tn), and mutual funds (+Rp5.5tn).
Meanwhile, in the equity market, the JCI index rebounded by +0.29% to 7,044.82 (vs. -1.54% on the previous day, or +1.30% YTD), with the trading activity dropping to Rp14.5tn (vs. Rp22.2tn on the previous day), but it was still higher than the average trading value per day YTD of Rp12.8tn. Foreign investors continued to record a net outflow, but it eased to -Rp736.2bn (vs. -Rp2.8tn on the previous day, or -Rp51.7tn YTD). Elsewhere, Asian equity markets closed mixed; the Nikkei 225 index still posted negative returns, albeit easing to -0.06%, amounting to 37,446.81 (vs. -1.30% on the previous day, or -4.70% YTD), while Hang Seng index reversed firmly, rising by +1.53% to 23,512.49 (vs. -0.57% on the previous day, or +18.05% YTD) as Trump planned to speak with Xi Jinping, thus raising hopes for renewed trade talks.
Domestic Corp Bond Market
On the corporate side, trading activity also rebounded on Tuesday (3-Jun), with volume rising to Rp5.2tn (vs. Rp2.3tn on 2-Jun). This figure surpassed the prior week s average daily volume of Rp4.3tn, the 2025 YTD daily average of Rp3.6tn, and remained above the 2024 daily average of Rp2.05tn.
The WSKT03BCN2 series (maturing on 31-Dec-34), rated idB, led the corporate bond market with a notable trading volume of Rp460bn. Its price jumped sharply to 99.92 (+24.90%), driving the yield significantly lower to 8.26% (-349.48 bps). Following this, the PIDL01CCN2 series (maturing on 30-Apr-30), rated idA+, recorded a trading volume of Rp384bn. The bond was relatively unchanged at 99.80, yielding 10.55%.
Bank BJB Syariah (BJBS) is currently issuing its Subordinated Sukuk Wakalah Bi Al-Istitsmar I Year 2025, offering 5-yr and 7-yr tenors, with a target issuance of Rp300bn. The proceeds from this issuance will be utilized to strengthen the Bank s capital structure by supplementing its tier-2 capital, supporting financing expansion. The book-building period is 27 May to 12 June 2025, with offering coupon ranges of 8.25 9.25% for the 5-yr tenor and 8.50-9.50% for the 7-yr tenor. (For the detail report please see Bond Issuance:PT Bank BJB Syariah – Building Resilience Amid Economic Headwinds )
PT Bank OCBC NISP Tbk is currently issuing its new bond series, offering 1-yr, 3-yr and 5-yr tenors, with a target issuance of Rp1,500bn. The book-building period is 3-13 June 2025, with offering coupon ranges of 6.15-6.50% for the 1-yr tenor, 6.35 6.85% for the 3-yr tenor and 6.40-6.90% for the 5-yr tenor. (For the detail report please see Bond Issuance:PT Bank OCBC NISP Tbk – Strong Performance Highlights Robust Resilience amid Economic Challenges )
