Indonesian government bonds (INDOGBs) closed weaker on Friday, with yields edging higher across the curve. Despite the pullback, INDOGBs still registered weekly gains. Foreign investors remained net buyers, though at a softer pace of Rp287bn (vs. Rp2.35tn previously), concentrated in non-benchmark series.
According to Bloomberg, the 5-yr FR104 closed at 102.89 (yield: 5.81%, +1.4 bps), the 10-yr FR103 at 102.99 (yield: 6.34%, +2.4 bps), the 15-yr FR106 at 103.82 (yield: 6.72%, +1.3 bps), and the 20-yr FR107 at 103.15 (yield: 6.83%, +2.5 bps). Indonesia’s 10-yr USD global bond price (Mar-2031) edged down slightly to 87.17 (yield: 4.49%, +1.5 bps), and the 5-yr CDS was broadly stable at 67.72 bps (+0.03 bps). The rupiah weakened for a fourth straight session, down 0.37% to Rp16,345/USD (YTD: -1.45%).
According to IDX s OTC trading report, Indonesian government bond trading activity eased further ahead of weekend, on Friday (22-Aug), with total volume declining to Rp35.4tn (vs. Rp38.4tn on 21-Aug). The figure fell below the current week s daily average of Rp39.0tn, though it remained well above both the 2025 year-to-date (YTD) daily average of Rp31.0tn and the 2024 daily average of Rp21.7tn. The 5-yr FR0104 series (maturing on 15-Jul-30) continued to dominate market flows, booking a trading volume of Rp10.2tn (vs. Rp9.2tn previously). Its price slipped slightly to 102.97 (-0.03%), keeping the yield relatively unchanged at 5.79% (+0.66 bps). This was followed by the 10-yr FR0103 series (maturing on 15-Jul-35), which recorded Rp4.2tn in trading volume. The bond s price edged down to 102.90 (-0.39%), lifting the yield to 6.35% (+5.38 bps).
Based on DMO data (as of 21-Aug), foreign ownership of government bonds declined to Rp948.3tn (14.85% of outstanding). YTD, Bank Indonesia has remained the largest net buyer (+Rp122.2tn), followed by onshore banks (+Rp72.1tn), foreigners (+Rp71.6tn), insurance & pension funds (+Rp34.3tn), retail (+Rp30.2tn), others (+Rp8.7tn), and mutual funds (+Rp5.6tn).
Based on our calculation, in the 19-Aug sukuk auction, onshore banks secured the largest share with Rp4.2tn of net awards (46.8% of issuance), followed by insurance & pension funds (Rp3.2tn), other investors (Rp0.8tn), BI (Rp0.5tn), mutual funds (Rp0.15tn), and retail (Rp0.12tn).
The JCI fell 0.40% to 7,858.85 on Friday, extending Thursday s -0.67% decline. Despite the back-to-back losses, the index still went up +11.9% YTD. The turnover moderated to ~Rp16tn (vs. Rp17tn previously; YTD avg.: Rp13.9tn), and foreign investors posted net inflows of Rp424.6bn (vs. +Rp681.6bn), trimming the YTD net outflows to -Rp52.4tn.
On a weekly basis, the equity market fell by -0.49% (vs. +4.78% in the last week). Meanwhile, in the bond market, rallying continued with the 10-yr INDOGB yield falling -3.4 bps (vs. -2.1 bps prior), but conversely, the USD INDOGB yield reversed and went up by +3.2 bps (vs. -5.1 bps prior), and the rupiah weakened by -0.37%. Foreign flows were mixed, with +Rp2.74tn of net inflows into equities, but net outflows of -Rp1.9tn from the bond market.
Meanwhile, for the week, average daily trading volume in government bonds climbed to Rp39.0tn (vs. Rp36.2tn in the prior week). The 5-yr FR0104 series remained the most actively traded benchmark, with total weekly volume increasing to Rp32.0tn (vs. Rp25.6tn previously).
Domestic Corp Bond Market
On the corporate side, trading activity picked up on Friday (22-Aug), with total volume rising to Rp2.4tn (vs. Rp1.45tn on 21-Aug). Despite the increase, the figure remained below both the current week s daily average of Rp3.1tn and the 2025 YTD average of Rp3.91tn, though it surpassed the 2024 daily average of Rp2.05tn.
The PALM02BCN3 series (maturing on 18-Sep-27), rated idA, led the segment with Rp161bn in trading volume. The bond s price edged up to 106.99 (+0.10%), bringing the yield down to 4.45% (-5.80 bps). This was followed by the SMMA03CN1 series (maturing on 5-Apr-29), rated irAA, which posted Rp153bn in trading volume. Its price advanced to 113.01 (+0.18%), lowering the yield to 5.97% (-6.02 bps).
Over the week, average daily trading volume in corporate bonds remained elevated, inching up to Rp3.1tn (vs. Rp3.0tn in the prior week). The 3-yr SMMBMA01BCN2 series (maturing on 20-Aug-28), rated idA(sy), stood out as the most actively traded corporate bond, registering total weekly volume of Rp1,122bn.
Fitch Ratings has affirmed Indonesian telecom operator PT XLSMART Telecom Sejahtera Tbk’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB-‘ with a Stable Outlook and simultaneously withdrawn the IDRs. Fitch Ratings Indonesia has also affirmed the National Long-Term Rating and all outstanding rupiah-denominated senior unsecured bonds and sukuk at ‘AA+(idn)’. The Outlook on the National Long-Term Rating is Stable. According to Fitch, the rating reflects XLSMART’s improved business profile following its merger with PT Smartfren Telecom Tbk, resulting in a stronger market position, larger scale and larger spectrum holding. Meanwhile, this is partially offset by the increase in leverage. The Stable Outlook reflects Fitch s view that EBITDA net leverage will return to below 2.1x after 2025, the level above which Fitch may consider negative rating action.
