Rupiah-denominated assets ended August on a weaker note. The JCI dropped by -1.53% to 7,830.49 (MTD: +4.60%, YTD: +11.52%), pressured by political instability and widespread demonstrations. The market turnover spiked to Rp22.7tn (vs. Rp14.3tn YTD average) as foreign investors extended their selling with -Rp1.1tn of net outflows (MTD: +Rp11.1tn, YTD: -Rp50.9tn). Regionally, equity markets diverged, with Japan s Nikkei 225 Index slipping by -0.26% to 42,718.47 (MTD: +4.05%, YTD: +8.76%) due to profit-taking and weak data, while Hong Kong s Hang Seng index rebounded by +0.32% to 25,077.62 (MTD: +1.32%, YTD: +24.80%) amid optimism about Fed rate cuts and domestic growth measures.
INDOGB yields rose across the curve, led by short-to-medium tenors. According to Bloomberg, the 5-yr FR104 closed at 103.28 (yield: 5.72%, +9.2 bps), the 10-yr FR103 at 102.95 (yield: 6.34%, +4.5 bps), the 15-yr FR106 at 103.90 (yield: 6.71%, +3.7 bps), and the 20-yr FR107 at 103.13 (yield: 6.84%, +2.2 bps). On USD debts, the 5-yr global bond (Mar-2031) fell to 87.38 (yield: 4.45%, +2.9 bps), while the 5-yr CDS widened significantly to 69.79 bps (+3.43 bps). Meanwhile, the rupiah weakened against the USD, depreciating by -0.71% to Rp16,456/USD (MTD: -0.02%, YTD: -2.14%).
According to IDX s OTC trading report, Indonesian government bond trading activity heightened on Friday (29-Aug), with total volume rising to Rp39.0tn (vs. Rp30.6tn on 28-Aug). Despite the increase, the figure remained slightly below the current week s daily average of Rp41.1tn; however, it surpassed the 2025 year-to-date (YTD) daily average of Rp31.3tn and stayed well above the 2024 daily average of Rp21.7tn. The 5-yr FR0104 series (maturing on 15-Jul-30) continued to dominate market flows, booking Rp9.1tn in trading volume (vs. Rp6.5tn previously). Its price slipped to 103.20 (-0.29%), driving the yield higher to 5.74% (+6.95 bps). This was followed by the 10-yr FR0103 series (maturing on 15-Jul-31), which recorded Rp5.3tn in trading volume (vs. Rp2.9tn previously). The bond s price climbed to 102.70 (+1.18%), bringing the yield down to 6.38% (-16.41 bps).
On the flow side, based on the latest DMO data (as of 28-Aug), foreign ownership of government bonds improved to Rp953.1tn (14.86% of outstanding). YTD, BI has been the largest net buyer (+Rp128.8tn), followed by onshore banks (+Rp82.6tn), foreign investors (+Rp76.4tn), insurance and pension funds (+Rp40.3tn), retail (+Rp28.2tn), other investors (+Rp10.6tn), and mutual funds (+Rp7.7tn).
For the week, equities slipped -0.34% (vs. -0.49% prior), the 10-yr INDOGB yield rose slightly by +0.5 bps (vs. -3.4 bps prior), the USD-denominated Indonesian bond yield gained +1.2 bps (vs. +3.4 bps prior), and the rupiah weakened by -0.68% (vs. -1.17% prior). Interestingly, foreign inflows were recorded in both equities (+Rp1.49tn) and bonds (+Rp4.84tn).
Meanwhile, over the week, average daily trading volume in government bonds rose further to Rp41.1tn (vs. Rp39.0tn in the prior week). The 5-yr FR0104 series remained the most actively traded benchmark, although its total weekly volume eased slightly to Rp31.3tn (vs. Rp32.0tn previously).
Domestic Corp Bond Market
On the corporate side, trading activity continued to decline on Friday (29-Aug), with total volume falling to Rp2.3tn (vs. Rp4.7tn on 28-Aug). The figure stood below both the current week s daily average of Rp4.1tn and the 2025 YTD average of Rp3.93tn, though it remained higher than the 2024 daily average of Rp2.05tn.
The BBKP02BCN2 series (maturing on 29-Aug-28), rated AAA(idn), debuted on the secondary market as the most actively traded, posting Rp761bn in volume. Its price was transacted at 100.00, yielding 6.80%. This was followed by the BBKP02ACN2 series (maturing on 9-Sep-26), rated AAA(idn), also debuted in the secondary market, which recorded Rp169bn in trading volume at 99.93, yielding 6.52%.
Over the week, average daily corporate bond trading volume rose significantly to Rp4.1tn (vs. Rp3.1tn in the prior week). The 1-yr SMMBMA01ACN2 series (maturing on 27-Aug-26), rated idA(sy), emerged as the most actively traded corporate bond, registering a total weekly volume of Rp1,244bn.
