The final sukuk auction for 2Q25 held on 24-Jun posted another record high so far this year with total incoming bids of Rp39.7tn, well above the Rp8tn target and the previous auction s Rp36.9tn (10-Jun). This also exceeded our forecast range of Rp31tn 36tn. Investor appetite remained concentrated in the front-end benchmark series, i.e., PBS030 (3.1-yr) at Rp14.4tn (vs. Rp13.7tn prior; YTD avg.: Rp6.8tn) and PBS003 (1.6-yr) at Rp9.8tn (vs. Rp8.7tn prior; YTD avg.: Rp7.4tn). Together, they contributed >61% of the total bids. Other notable demand figures came from PBS038 (24.5-yr) at Rp6tn (15.1%), 9-mo SPNS at Rp5.1tn (12.8%), PBS039 (16.1-yr) at Rp2.7tn (6.7%), 6-mo SPNS at Rp1.2tn (2.9%), and PBS034 (14-yr) at Rp0.6tn (1.4%).
The government upsized the issuance to Rp12tn, exceeding the target of Rp8tn and the prior auction s Rp10tn. The blended weighted cost of funds rose to 6.59% (vs. 6.36%), and the average tenor extended sharply to 11.44 years (vs. 4.15 years). Including the retail SR022 series, the YTD gross bond issuance has reached Rp673tn, or 56.4% of our full-year 2025 forecast (based on a -2.60% of GDP budget deficit assumption). The investor type breakdown will be available after the 26-Jun settlement.
INDOGB yields declined across the curve, although foreign reported outflows of -Rp0.65tn (vs. -Rp0.22tn), based on CTP PLTE data. The 5-yr FR104 decreased by 10.0 bps to 6.34%, the 10-yr FR103 decreased by 6.0 bps to 6.74%, the 15-yr FR106 decreased by 4.1 bps to 6.99%, and the 20-yr FR107 decreased by 3.0 bps to 7.02%. The yield of the 10-yr USD global bond (Mar-2031) also went down and traded at 4.59%, or declining by 4.1 bps, while Indonesia s 5-yr CDS narrowed to 78.98 (-4.47 bps), reflecting improved risk sentiment. Meanwhile, the rupiah rebounded by +0.60% to Rp16,340/USD, trimming its YTD depreciation to -1.42% as risk appetite returned across EM FX amid softer US dollar sentiment and easing geopolitical tensions.
According to IDX s OTC trading report, Indonesian rupiah government bond trading activity picked up on Tuesday (24-Jun), with volume rising to Rp29.3tn (vs. Rp27.2tn on 23-Jun), boosted by strong demand from the Sukuk auction held on the same day. Despite the modest increase, the figure remained below the prior week s average daily trading volume of Rp32.5tn, yet was broadly in line with the 2025 year-to-date (YTD) daily average of Rp29.4tn and comfortably above the 2024 daily average of Rp21.7tn. The 10-yr FR0103 series (maturing on 15-Jul-35) emerged as the most actively traded government bond, booking a volume of Rp8.3tn (vs. Rp6.1tn previously). The bond s price inched up to 100.05 (+0.42%), sending the yield slightly lower to 6.74% (-5.83 bps). Close behind, the 3.1-yr PBS030 series (maturing on 15-Jul-28) recorded a trading volume of Rp5.6tn (vs. Rp0.7tn previously). Its price edged down to 98.84 (-0.81%), pushing the yield significantly higher to 6.30% (+29.49 bps).
Based on DMO data (as of 20-Jun), foreign holdings in government bonds increased to Rp922.4tn (14.71% of total outstanding). Year-to-date, Bank Indonesia has been the biggest net buyer of government bonds (amounting to +Rp101tn), followed by insurance and pension funds (+Rp50.2tn), foreign investors (+Rp45.8tn), retail investors (+Rp16.2tn), onshore banks (+Rp10.6tn), and other investors (+Rp7.1tn). Meanwhile, the only investor type that was a net seller was mutual funds, with a net sell of -Rp1tn.
The JCI also rebounded by +1.21% to 6,869.17 (vs. -1.74% prior; YTD: -1.73%), led by property, consumer cyclicals, and healthcare. The trading value moderated to Rp11.9tn (vs. Rp12.78tn), still below the YTD daily average of Rp13.3tn. Meanwhile, foreign outflows persisted at -Rp0.93tn (vs. -Rp0.28tn; YTD: -Rp54.3tn). Regional equities also closed in the green, i.e., the Nikkei 225 Index went up by +1.14% to 38,790.56 (YTD: -1.13%), and the Hang Seng index went up by +2.06% to 24,177.07 (YTD: +20.94%). The gains were supported by easing geopolitical risks and safe-haven flows while US Fed officials opened the door for a potential rate cut as early as July if tariff-driven inflation remains manageable.
Domestic Corp Bond Market
On the corporate side, trading activity softened slightly on Tuesday (24-Jun), with volume declining to Rp5.2tn (vs. Rp6.2tn on 23-Jun). Nevertheless, the figure remained well above the prior week s average daily volume of Rp2.4tn, the 2025 YTD daily average of Rp3.5tn, and the 2024 daily average of Rp2.05tn.
The WOMF05BCN2 series (maturing on 24-Jun-28), rated idAAA, which debuted in the secondary market, led the corporate bond segment with a trading volume of Rp796bn. It was traded at 100.00, yielding 6.85%. Following this, the WOMF05ACN2 series (maturing on 4-Jul-26), also rated idAAA, recorded a trading volume of Rp295bn. The bond was traded at 100.00, offering a yield of 6.45%.
Fitch Ratings Indonesia has assigned National Long-Term Ratings of ‘AA+(idn)’ to PT Tower Bersama Infrastructure Tbk’s (TBI, BBB-/AA+(idn)/Stable) proposed bond programme of up to Rp20tn, sukuk programme of up to Rp8tn, first phase of bond issuance of up to Rp750bn, and first phase of sukuk issuance of up to Rp750bn.
