Rupiah assets softened on Thursday (19-Feb), with equities declining and government bond yields rising, while the rupiah remained relatively stable at Rp16,880/USD (-0.57% MTD; -1.14% YTD) after Bank Indonesia (BI) kept its benchmark rate unchanged.
BI maintained the BI-Rate at 4.75% for the fifth consecutive meeting in Feb-2026, in line with our polling results. The overnight deposit facility rate was kept at 3.75%, while the lending facility rate remained at 5.50%. The decision aims to stabilize the rupiah amid persistent global financial volatility. BI expects inflation to remain within its 2.5% 1% target range over the next two years. The central bank also sees economic growth strengthening in 1Q26 and maintained its 2026 growth forecast at 4.9 5.7%. It is important to note that BI reiterated that it will continue to assess room for potential rate cuts going forward, maintaining a mildly dovish tone.
The Jakarta Composite Index (JCI) fell 0.4% to 8,274 (-0.7% MTD; -4.3% YTD), led by weakness in the technology and financial sectors. The stock trading value was Rp26.1tn, bringing the average daily trading value in 2026 to Rp30.1tn. Foreign investors recorded net inflows of Rp387.0bn (still net outflows of Rp4.8tn MTD, net outflows of Rp14.7tn YTD). Meanwhile, Asian equity indices closed higher, with the Straits Times Index up by 1.3% to 5,002 (+2.0% MTD, +7.6% YTD) and the Nikkei Index up by 0.6% to 57,468 (+7.8% MTD, +14.2% YTD).
INDOGB yields moved higher, with foreign investors recording Rp3.5tn in net outflows, entirely from non-benchmark series, following yesterday s strong inflows of Rp4.02tn during the regular bond auction. Bloomberg s data showed that the 5-yr FR109 bond yield went up to 5.75% (+9.4 bps), the 10-yr FR108 up to 6.44% (+6.1 bps), the 15-yr FR106 up to 6.64% (+3.6 bps), and the 20-yr FR107 edged up to 6.69% (+2.3 bps). Offshore indicators were mixed, with the 5-yr USD sovereign yield up slightly to 4.33% (+0.1 bps) and the 5-yr CDS narrowing slightly to 81.66 (-0.21 bps).
According to IDX s OTC trading report, Indonesian government bond trading activity moderated on Thursday (19-Feb), with total volume declining to Rp36.2tn (vs. Rp40.4tn prior, or YTD avg.: Rp32.3tn), led by the 10-yr FR108 series which reached Rp6.7tn. This was followed by 5-yr FR109 and 14.5-yr FR106 series which recorded volume of Rp5.3tn and Rp3.6tn, respectively.
Based on DMO settlement data as of 13-Feb, foreign ownership in government bonds fell further to Rp880.4tn (13.11% of the total outstanding). YTD, onshore banks have remained the largest net buyers (+Rp47.6tn), followed by insurance & pension funds (+Rp36.3tn), other investors (+Rp32.5tn), mutual funds (+Rp21.9tn), and Bank Indonesia (+Rp8.2tn). Foreign investors (still) recorded net purchases of +Rp1.8tn YTD, while retail investors remained net sellers (-Rp3.8tn).
Domestic Corporate Bonds
On the corporate side, trading activity turnover moderated on Thursday to Rp5.9tn (vs. Rp6.0tn on prior, or YTD avg.: Rp4.2tn). The SMBRIS01ASLCN2 series (maturing on 6-Jul-26), rated idAAA(sy), was the most actively traded with a total volume Rp350bn. Its price rose to 101.52 (+0.82%), while the yield declined sharply to 2.42% (-267.20 bps). This was followed by the SMFP06CN2 series (maturing on 17-Nov-26), rated idAAA with a total volume Rp200bn. Its price increased to 100.67 (+0.07%), while the yield fell to 5.08% (-9.92 bps). Close behind was the SMLPPI01CN1 series (maturing on 4-Oct-29), rated idA(sy) with a volume of Rp205bn. Its price slipped to 108.00 (-0.02%), while the yield inched up to 8.41% (+0.45 bps).
Pefindo has lowered the ratings of PT Wijaya Karya (Persero) Tbk WIKA s Shelf Registered (SR) Bond II Phase II to idD from idCCC and SR Sukuk Mudharabah II Phase II Serie B and C to idD(sy) from idCCC(sy). These rating actions follow WIKA s deferral of the coupon payment on the respective financial instruments due on February 18, 2026. At the same time, PEFINDO has maintained WIKA s corporate rating at idSD and the WIKA s other outstanding bonds and sukuk atidD. According to Pefindo, the corporate rating reflects WIKA s weak financial and liquidity profile as well as risks from previous expansion.
Pefindo has raised the ratings for PT PP Properti Tbk (PPRO) and PPRO s outstanding SR Bond II Phase I, Phase II, and Phase IV to idB from idCCC with stable outlook. The rating action follows the effectiveness of the homologation agreement and its registration with KSEI on February 10, 2025, enabling PPRO to resume interest and principal payments under the agreed scheme. According to Pefindo, the rating reflects PPRO s very weak financial profile and its sensitivity to changes in macroeconomic conditions.
