Rupiah assets closed mixed on Wednesday. The JCI ended its 4-day winning streak, inching down -0.04% to 8,166.03 (vs. +0.36% prior; YTD: +15.34%) despite the turnover rising to Rp29.5tn (vs. Rp28.7tn prior), which was well above the YTD daily average of Rp15.9tn. Foreign investors extended their selling, recording net outflows of -Rp455.3bn (vs. -Rp89.4bn prior; YTD: -Rp55.2tn). Regionally, Asian equities also softened as investors took profits; the Nikkei 225 Index fell -0.45% (YTD: +21.44%), and the Hang Seng Index slipped -0.48% (YTD: +36.72%).
In the bond market, INDOGBs extended their rally, with yields continuing to decline across tenors. Based on CTP PLTE data, foreign investors posted marginal net outflows of -Rp0.11tn (vs. +Rp4.13tn prior). According to Bloomberg, the 5-yr FR104 closed at 104.57 (+0.08%), yielding 5.40% (-2.1 bps); the 10-yr FR103 at 104.28 (+0.50%), yielding 6.16% (-7.0 bps); the 15-yr FR106 at 104.43 (+0.17%), yielding 6.65% (-1.8 bps); and the 20-yr FR107 at 104.00 (+0.28%), yielding 6.76% (-2.6 bps). Offshore, the 5-yr USD global bond yield eased to 4.39% (-1.4 bps), while Indonesia s 5-yr CDS was relatively stable at 78.12 bps (+0.08 bps). Meanwhile, the rupiah weakened by -0.12% to Rp16,560/USD (vs. +0.08% prior; YTD: -2.84%).
What makes this bond rally noteworthy is that bond yields continued to decline despite foreign outflows and a weaker rupiah, underscoring the depth and strength of domestic demand. Indonesia s bond market has become structurally stronger, with foreign ownership falling from 40% pre-COVID to <14% in Oct-2025, and volatility has been steadily declining. The 10-yr INDOGB yield has now touched a new YTD low of 6.16%, below India s 6.51%, and is narrowing toward the Philippines 6.04%. This is a reflection of improving macro stability and robust local investor confidence.
According to IDX s OTC trading report, Indonesian government bond trading activity continued to gain momentum on Wednesday (8-Oct) amid strengthened market activity, with total volume rising further to Rp50.5tn (vs. Rp42.4tn on 7-Oct). The figure surpassed the prior week s daily average of Rp43.8tn and remained well above both the 2025 year-to-date (YTD) daily average of Rp32.4tn and the 2024 daily average of Rp21.7tn. The 5-yr FR0104 series (maturing on 15-Jul-30) led market activity, booking Rp10.1tn in trading volume (vs. Rp2.4tn previously). Its price inched up to 104.65 (+0.05%), bringing the yield marginally lower to 5.38% (-1.23 bps). This was followed by the 10-yr FR0103 series (maturing on 15-Jul-35), which recorded Rp8.0tn in trading volume (vs. Rp4.4tn in the previous day). Its price edged higher to 104.40 (+0.34%), driving the yield slightly lower to 6.14% (-4.71 bps).
Foreign ownership of government bonds edged down to Rp900tn (13.93% of outstanding) as of 6-Oct. Year-to-date, Bank Indonesia has been the largest net buyer (+Rp143.5tn), followed by onshore banks (+Rp113.6tn), insurance & pension funds (+Rp72.9tn), others (+Rp29.6tn), foreigners (+Rp23.3tn), mutual funds (+Rp20.2tn), and retail investors (+Rp16.7tn).
Domestic Corp Bond Market
On the corporate side, bond trading activity rebounded modestly on Wednesday (8-Oct), with total volume improving to Rp4.2tn (vs. Rp3.4tn on 7-Oct). The figure remained below the prior week s daily average of Rp4.7tn, yet exceeded the 2025 YTD average of Rp3.9tn and stood comfortably above the 2024 daily average of Rp2.05tn.
The SIBOLD01B series (maturing on 26-Mar-28), rated idA+(sy), led the segment, posting Rp392bn in trading volume. Its price advanced to 104.56 (+2.57%), compressing the yield sharply to 6.48% (-115.59 bps). This was followed by the DART04BCN1 series (maturing on 2-Jul-28), rated irA-, which booked Rp345bn in trading volume. Its price slipped to 104.92 (-1.38%), pushing the yield sharply higher to 8.46% (+58.38 bps).
