On Thursday, the Indonesian rupiah weakened further by 0.33% to Rp16,331/USD, tracking continued dollar strength as the DXY climbed toward 98.7. Year-to-date, the rupiah has depreciated 1.37%. Indonesian Government Bonds (INDOGBs) prices also declining and yields rising slightly across the curve. Foreign investors continued to reduce exposure but slowing to -Rp0.9tn (vs. -Rp3.2tn previously), based on CTP PLTE data. According to Bloomberg, the 5Y FR104 closed at 101.46 (yield: 6.15%, +1.8 bps), the 10Y FR103 at 101.30 (yield: 6.57%, +1.3 bps), the 15Y FR106 at 102.24 (yield: 6.88%, +0.8 bps), and the 20Y FR107 at 101.48 (yield: 6.99%, +0.2 bps). In external markets, Indonesia s 10yr USD bond due Mar-2031 also dropped to 86.25 (yield: 4.65%, +8.5 bps), while the 5Y CDS narrowed slightly to 74.44 (-0.71 bps).
Based on the latest DMO data (as of 16-Jul), foreign holdings in government bonds were stable at Rp933.1tn, or 14.71% of the total outstanding. Year-to-date, Bank Indonesia has been the biggest net buyer of government bonds (amounting to +Rp107.8tn), followed by foreign investors (+Rp56.4tn), insurance & pension funds (+Rp52.6tn), retail investors (+Rp43.4tn), onshore banks (+Rp35.3tn), and other investors (+Rp10.2tn). Meanwhile, the only investor type that was a net seller was mutual funds, with a net sell of -Rp1.9tn.
In contrast, the Jakarta Composite Index (JCI) rallied further +1.32% to close at 7,287.02, extending its YTD gain to +4.21%. While daily equity turnover moderated to Rp14.27tn (vs. Rp16.51tn), it remained above the YTD average of Rp13.2tn. In regional markets, the Nikkei 225 index also rebounded +0.60% despite lingering concerns over a proposed 25% US tariff, as Japan continues trade talks with the US ahead of the 1 August deadline. China s Shanghai Composite index also gained +0.37% after GDP data pointed to continued solid growth. Meanwhile, US President Trump signaled a softer stance toward China, aiming to revive momentum for a summit with President Xi and a trade deal
Domestic Corp Bond Market
Pefindo has assigned idBBB rating with stable outlook to PT Garuda Indonesia (Persero) Tbk (GIAA). According to Pefindo, the rating reflects GIAA s strategic role to Indonesian Government, strong business position, and a comprehensive route network. However, these strengths are offset by GIAA s weak financial profile, intense market competition, and its participation in the highly cyclical airline industry.
PT Fitch Ratings Indonesia has assigned Indonesia-based data centre owner and operator PT DCI Indonesia Tbk a first-time National Long-Term Rating of ‘AA-(idn)’. The Outlook is Stable. According to Fitch, DCI’s rating reflects its leading position in Indonesia, high-quality assets, strong cash flow visibility and low EBITDA net leverage. Meanwhile, these strengths are moderated by DCI’s high asset concentration and institutional investors’ modest appetite for data centres in Indonesia compared to core global markets. DCI’s rating is constrained by its limited pool of unencumbered assets, which could hinder financing flexibility in a downturn.
Fitch Ratings Indonesia has published the ‘AAA(idn)’ rating on PT Toyota Astra Financial Services’ (TAF, AAA(idn)/Stable) fifth bond programme and the first tranche of bonds issued under the programme. The bond programme amounts to up to Rp5tn and the first tranche consists of the following: 1) Series A, a 370-day bonds due July 2026, with a size of Rp200bn and coupon of 6.15%; 2) Series B, three-year bonds due July 2028, with a size of Rp165,210mn and coupon of 6.50%.
