Rupiah-denominated assets closed mixed on Wednesday. The JCI was broadly unchanged at 8,127 (YTD: +14.8%) despite foreign net outflows of -Rp524.6bn (vs. +Rp5.5tn prior; YTD: -Rp53.2tn). Market turnover jumped to Rp38.1tn, well above the YTD daily average of Rp15.3tn. Regionally, Asian equities gained, with the Hang Seng index up +1.4% (YTD: +32.2%) and Nikkei 225 index higher by +0.3% (YTD: +14.4%) as investors awaited fresh US inflation data from Friday s PCE report, alongside a heavy Treasury supply this week, including $70bn in 5-year notes today and $44bn in 7-year notes on Thursday.
On the bond side, INDOGBs extended losses, pushing yields higher across the curve, particularly in short-to-mid tenors. According to Bloomberg, the 5-yr FR104 traded at 104.21 (-0.27%), yielding 5.49% (+6.5 bps); the 10-yr FR103 at 102.74 (-0.29%), yielding 6.37% (+4.1 bps); the 15-yr FR106 at 103.42 (-0.08%), yielding 6.76% (+0.9 bps); and the 20-yr FR107 at 102.95 (-0.14%), yielding 6.85% (+1.3 bps). Offshore sentiment softened, with the 5-yr USD global bond yield easing to 4.39% (-3.1 bps), though CDS spreads widened to 81.6 bps (+1.0 bps). Meanwhile, the rupiah weakened slightly by -0.07% to Rp16,676/USD (YTD: -3.6%), extending its softening trend at a slower pace.
According to IDX s OTC trading report, Indonesian government bond trading activity stayed elevated, with total volume rising slightly to Rp46.4tn (vs. Rp45.7tn on 23-Sep). The figure exceeded the prior week s daily average of Rp41.2tn, while also standing above both the 2025 year-to-date (YTD) daily average of Rp32.1tn and the 2024 daily average of Rp21.7tn. The 5-yr FR0104 series (maturing on 15-Jul-30) led the market, booking Rp8.7tn in trading volume (vs. Rp4.4tn previously). Its price edged lower to 104.05 (-0.46%), driving the yield sharply higher to 5.35% (+11.46 bps). This was followed by the 10-yr FR0103 series (maturing on 15-Jul-35), which posted Rp3.8tn in trading volume (vs. Rp2.2tn on the prior day). The bond s price slipped to 102.70 (-0.25%), pushing the yield higher to 6.37% (+3.15 bps).
On flows, foreign ownership of government bonds slipped to Rp915.6tn (14.25% of outstanding) as of 23-Sep. YTD, Bank Indonesia has remained the largest net buyer (+Rp138.6tn), followed by onshore banks (+Rp102.5tn), insurance & pension funds (+Rp57.6tn), foreign investors (+Rp38.9tn), retail (+Rp18.4tn), others (+Rp14.6tn), and mutual funds (+Rp13.2tn).
Domestic Corp Bond Market
On the corporate side, bond trading activity slowed on Wednesday (24-Sep), with total volume easing to Rp2.8tn (vs. Rp3.1tn on 23-Sep). The figure fell below the prior week s daily average of Rp3.9tn and remained under the 2025 YTD average of Rp3.9tn, while still standing well above the 2024 daily average of Rp2.05tn.
The SIPOST01BCN1 series (maturing on 8-Jan-30), rated A(idn), led the segment with Rp390bn in trading volume. Its price edged up to 109.85 (+3.34%), sending the yield sharply lower to 7.07% (-94.16 bps). This was followed by the BUMI01BCN2 series (maturing on 24-Sep-30), rated idA+, which debuted in the secondary market with Rp292bn in total volume. The bond traded at 99.70, yielding 9.33%.
Pefindo has affirmed idA rating for PT Provident Investasi Bersama Tbk (PALM) and its outstanding Shelf registration Bond I and II. Outlook for the corporate rating is stable. According to Pefindo, the corporate rating reflects PALM s strong credit quality in its investment portfolio, conservative financial policy, and strong liquidity measures. However, the rating is constrained by its concentrated investment portfolio and very low recurring income.
Pefindo has affirmed idAAA ratings to PT Bank Mandiri (Persero) Tbk and its outstanding bonds. Pefindo also affirmed idAA rating to Bank Mandiri s outstanding Subordinated Medium-Term Notes (MTN) II. Outlook for the corporate rating is stable. According to Pefindo, the corporate rating is mainly driven by the very strong likelihood and proven support from its controlling shareholder (the Indonesian government). The standalone credit profile reflects its superior business position, very strong capitalization, and very strong liquidity profile. However, these strengths are partly offset by tight competition amid challenging macroeconomic conditions.
