Rupiah-denominated assets remained under pressure on Friday (13-Mar), in line with weaker sentiment across regional markets amid escalating geopolitical tensions in the Middle East. The Jakarta Composite Index (JCI) fell sharply by -3.05% to 7,137.21, extending year-to-date losses to -17.46%. Trading turnover increased slightly to Rp14tn (vs. Rp13.3tn previously; YTD avg.: Rp28.5tn). Foreign investors turned net sellers, posting -Rp117.2bn in equity outflows (vs. +Rp1tn previously; YTD: -Rp8.86tn).
Regionally, Asian equities also closed lower as investors adopted a more risk-off stance amid rising geopolitical tensions. Iran s leadership reiterated its commitment to continue attacks against the United States and its allies and emphasized the potential closure of the Strait of Hormuz, thus raising concerns over global energy supply disruptions and higher oil prices. The Nikkei declined by -1.16% (YTD: +6.91%), while the Hang Seng fell by -0.98% (YTD: -0.64%).
In the bond market, INDOGB yields also rose across the curve, with pressures concentrated in shorter tenors amid foreign outflows and concerns that the fiscal deficit could exceed the 3% of GDP statutory limit due to higher energy subsidy spending. Foreign investors recorded additional bond outflows of -Rp3.4tn (vs. -Rp2.8tn previously). The 5-yr FF109 yield rose to 6.30% (+13.4 bps), while the 10-yr FR108 increased to 6.77% (+6.3 bps). Indonesia s 5-yr USD sovereign yield climbed to 4.68% (+4.7 bps), while the 5-yr CDS widened to 91.91 (+1.86 bps). Meanwhile, the rupiah weakened slightly by -0.23% to Rp16,944/USD (YTD: -1.53%).
According to IDX OTC trading data, government bond trading volume increased to Rp38.7tn (vs. Rp36.4tn previously; YTD avg.: Rp33.7tn). The 10-yr benchmark FR0108 led trading activity with Rp4.7tn in volume, followed by FR0103 (Rp3.8tn) and FR0082 (Rp3.1tn).
As of 12-Mar (settlement date), foreign ownership in SBN declined to Rp862.2tn (12.73% of total outstanding). Year-to-date, domestic investors remained the main buyers, led by insurance companies and pension funds (+Rp57.4tn), followed by onshore banks (+Rp56.7tn), other investors (+Rp49.2tn), Bank Indonesia (+Rp37.7tn), and mutual funds (+Rp25.5tn). Meanwhile, foreign and retail investors recorded net selling of -Rp16.5tn and -Rp7.3tn YTD, respectively.
On a weekly basis, rupiah assets broadly weakened. The JCI fell by -5.98% WoW, the 10-yr INDOGB yield rose 18.2 bps WoW, and the rupiah depreciated slightly by -0.06% WoW. Foreign investors recorded net outflows in both equities (-Rp1.57tn) and bonds (-Rp15.39tn) during the week.
Meanwhile, the average daily government bond trading increased to Rp38.8tn from Rp35.5tn in the previous week. The 5-yr benchmark FR0109 remained the most actively traded series, with the total weekly trading volume reaching Rp23.6tn.
Domestic Corporate Bonds
On the corporate side, trading activity increased on Friday (13-Mar), with total volume rising to Rp11.6tn (vs. Rp10.6tn prior, or YTD avg.: Rp6.2tn). The PALM02BCN3 series (maturing on 18-Sep-27), rated idA, was the most actively traded with a total volume of Rp481bn. This was followed by the SMMA03CN1 series (maturing on 5-Apr-29), rated irAA with a volume of Rp405bn. Close behind was the PIDL01CCN2 series (maturing on 30-Apr-30), rated idA+ with a volume of Rp324bn.
Over the week, average daily corporate bond trading volume strengthened to Rp11.9tn (vs. Rp9.7tn in the prior week). The WOMF05ACN3 series (maturing on 13-Mar-27), rated idAAA, emerged as the most actively traded corporate bond, recording total weekly trading volume of Rp1.6tn.
Pefindo has affirmed idA- rating with stable outlook to PT Eagle High Plantations Tbk (BWPT) and its Shelf Registered (SR) Bond I, as well as idA-(sy) rating for BWPT s Shelf-Registered Sukuk Mudharabah I. According to Pefindo, the rating reflects BWPT s strong operating management, stable demand for palm oil, and relatively strong financial profile. Meanwhile, the rating is constrained by BWPT s relatively moderate plantation profile and exposure to fluctuating commodity prices and severe weather.
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