Investor appetite for sukuk remained strong in the latest auction (22-Jul), with the total incoming bids reaching Rp50.3tn, surpassing both the Rp9tn target and the previous auction s Rp40.8tn (8-Jul). This marks the highest sukuk auction bid volume so far in 2025. Demand was still concentrated in the 3-yr PBS030 and 1.5-yr PBS003 benchmarks, which attracted Rp14.3tn and Rp13.9tn in bids, respectively well above their YTD average bid levels of ~Rp8tn. Together, these two series contributed ~56% of the total bids. Solid interest was also seen in the 9-mo SPNS (Rp7.9tn) and 24.4-yr PBS038 (Rp7.8tn).
The government awarded Rp12tn, unchanged from the previous sukuk auction and above the initial target. However, the weighted average cost of funds rose slightly to 6.32% (from 6.26%), in line with the average tenor that increased to 11.75 years (from 7.07 years). Including recent global sukuk issuance, the total YTD gross bond issuance has reached Rp795.1tn, or 64% of our full-year forecast (based on a 2.8% of GDP budget deficit).
In the secondary market, INDOGBs extended gains, supported by foreign inflows of +Rp3.93tn (vs. +Rp1.24tn previously), driven by both benchmark (+Rp1.4tn) and non-benchmark series (+Rp2.6tn). According to Bloomberg, the 5Y FR104 closed at 101.96 (yield: 6.04%, -2.6 bps), the 10Y FR103 at 102.00 (yield: 6.48%, -3.3 bps), the 15Y FR106 at 103.53 (yield: 6.75%, -7.2 bps), and the 20Y FR107 at 102.64 (yield: 6.88%, -5.5 bps). Meanwhile, Indonesia’s 10Y USD global bond (Mar-2031) edged down to 86.57 (yield: 4.58%, +0.8 bps), and the 5Y CDS narrowed further to 72.43 bps (-0.32 bps). The rupiah stabilized, appreciating slightly by 0.01% to Rp16,310/USD (YTD: -1.24%).
According to IDX s OTC trading report, Indonesian government bond trading activity surged on Tuesday (22-Jul), with volume rising significantly to Rp43.0tn (vs. Rp29.6tn on 21-Jul), supported by robust demand in the Sukuk auction held on the same day. The figure stood well above the prior week s daily average of Rp34.5tn, the 2025 year-to-date (YTD) daily average of Rp30.1tn, and the 2024 daily average of Rp21.7tn. The 10-yr FR0103 series (maturing on 15-Jul-35) led the market, recording a trading volume of Rp5.8tn (vs. Rp4.2tn previously). Its price inched up to 102.00 (+0.25%), pushing the yield slightly lower to 6.47% (-3.87 bps). This was followed by the 5.0-yr FR0104 series (maturing on 15-Jul-30), which posted a trading volume of Rp4.8tn (vs. Rp6.5tn previously). The bond s price also edged up to 102.04 (+0.15%), bringing the yield down to 6.02% (-3.46 bps).
Based on the latest DMO data (as of 21-Jul), foreign holdings in government bonds declined further to Rp931.3tn, or 14.61% of the total outstanding. Year-to-date, Bank Indonesia has been the biggest net buyer of government bonds (amounting to +Rp111.4tn), followed by insurance & pension funds (+Rp61.2tn), foreign investors (+Rp54.6tn), onshore banks (+Rp51.2tn), retail investors (+Rp43.3tn), other investors (+Rp12.8tn), and mutual funds (+Rp1.3tn).
In the equity market, after an 11-day rally, the JCI paused, falling 0.72% to 7,344.74 (YTD: +5.01%). Trading turnover rose to Rp19.7tn, while foreign outflows continued at -Rp561.5bn (YTD: -Rp60.2tn). Regionally, Asian equity markets closed mixed; the Nikkei 225 Index lost -0.11% to 39,774.92 (vs. -0.21% previously, or YTD: +1.42%), while the Hang Seng Index gained +0.54% to 25,130.03 (vs. +0.68% previously, or YTD: 24.87%).
Domestic Corp Bond Market
On the corporate side, trading activity moderated on Tuesday (22-Jul), as volume declined sharply to Rp2.9tn (vs. Rp7.1tn on 21-Jul). As a result, the figure fell below the prior week s average of Rp6.0tn and the 2025 YTD average of Rp3.9tn, though it remained above the 2024 daily average of Rp2.05tn.
The SWIATA01CCN1 series (maturing on 6-Oct-28), rated idA-(sy), led the corporate bond segment, recording a trading volume of Rp675bn. Its price rose to 102.10 (+2.10%), sending the yield lower to 10.72% (-77.84 bps). This was followed by the SIIJEE01B series (maturing on 8-Jul-28), also rated idA(sy), which posted a trading volume of Rp278bn. The bond s price declined to 100.10 (-8.34%), causing the yield to spike to 11.46% (+348.14 bps).
Pefindo has assigned idAA- rating with stable outlook to PT Indonesia Asahan Aluminium (Inalum). According to Pefindo, the rating reflects its strong likelihood of support form the parent company, PT Mineral Industri Indonesia (Persero) (MIND ID), strong market position, and strong financial profile. However, the rating is constrained by Inalum s exposure to commodity price fluctuations and project execution risk.
Pefindo has assigned idA- rating with stable outlook to PT Dahana. According to Pefindo, the rating reflects the Company s strong market position, integrated business operations, and strong financial profile. Meanwhile, the rating is constrained by Dahana s exposure to expansion risk and exposure to the volatility of commodity prices.
