Today’s highlights:
Vanke was rejected by at least two big domestic banks, as it tried to secure liquidity loan, in order to refinance RMB5.7bn, eq. to USD805mn, in bonds maturing next month. The situation served as a test for China’s govt. support for the sector. From domestic, President Prabowo would freeze Directorate General of Customs and Excises (DJBC), if the reform could not be done in 1yr. The similar situation was actually executed in Soeharto’s era. To improve national financial reporting, MoF would require all firms to report their financial statements to MoF, with capital market sector starting to do so in 2027. From Sumatra island, ~25 cities/regencies in North and Sumatra Provinces suffered flash floods and landslides, with the situation called “regional disaster”.
From the bond market, FR 84, 86, 56, and 99 are currently the cheapest based on our yield curve model. Last national business day, the dollar index was closed at 99.54 (0.1%). Rupiah was appreciated by 0.2% at USDIDR at 16,636. The 10yr UST yield increased by +0.0bps at 3.99% and 10yr INDOGBR increased by +3.8bps at 6.29% – the spread between the two was at 229bps.
Economy: President Prabowo to set one-year reform to Purbaya for Indonesian Customs, with Failure risking 16.000 Custom Employees
Indonesian President, Prabowo Subianto has set a one-year deadline for Indonesia’s Minister of Finance, Purbaya to do total reform of the Directorate General of Customs and Excise (DJBC), with failure risking the freeze of the Customs agency and 16.000 Custom employees being laid-off. This decision came from custom-related issues which had continuously occur and damaged the reputation of the DJBC, ranging through activities such as under-invoicing, alleged entry of illegal goods, and weak supervision in several ports and airports. The reformation of the DJBC has now become a national priority by the Indonesian Government, requiring the DJBC to improve in matters of transparency of services, accuracy of customs data, the integrity of employees, increased quality of import-export supervision, and efficiency of licensing processes. Purbaya has stated that the Central Government is not afraid to take radical measures, displaying their serious commitment in reforming the DJBC, as failure may risk the agency to be suspended and replaced by private institutions such as SGS (Société Générale de Surveillance). Source: Kontan
Economy: As of 2027, Companies are Now Mandated to Submit Financial Reports to Indonesia’s Ministry of Finance
Through the Government Regulation (PP) No. 43 of 2025 concerning Financial Reporting, companies now must submit their financial reports to the Ministry of Finance starting from 2027. The aim of this new regulation is to strengthen transparency and accountability of national financial reporting and as a first step to building financial reports which are integrated, efficient, and credible across sectors in-line with the Mandate of Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK). As reforming the financial reporting system requires much time and preparation of all parties involved, the Government seeks to implement this regulation in phases and in proportionality, to increase effectiveness without disrupting operational integrity of business entities, targeting business entities in the Capital Market sector first to enact this regulation no later than 2027, with other business sectors following accordingly to implemented stages by the guidance of authorities. Source: Kontan
Economy: Flash Floods and Landslides in Sumatra, Leaving 61 Fatalities and 100 Still Missing
Amidst a rare tropical cyclone passing through the region, flash floods and landslides has hit a number of areas on 27 November 2025, causing muddy water to sweep through resident homes, cutting off road access, damaging infrastructure, and forcing thousands of people to evacuate. Local authorities state that the cyclone that hit western Indonesia caused sea water in the Malacca Strait to overflow, triggering hydrometeorological disasters in several provinces causing 61 confirmed deaths and around 100 citizens missing, with the Government stating that the number of victims may rise as rainfall is still expected to continue. As of now, over 12k citizens have been evacuated with many more still requiring aid, however, communications and electricity has been cut off in the area, with access points to the worst-affected areas now cut off. Source: Kontan
