Demand in the latest sukuk auction on 27-Jan softened, as expected, but remained solid, with total incoming bids of Rp38.6tn (vs. Rp55.3tn in the previous sukuk auction), coming in at the lower end of our Rp38tn 48tn forecast range. Demand was led by the 2.5-yr PBS030 (Rp10.8tn; 28% of total bids), followed by the 9-mo SPNS (Rp6.3tn; 16.3%), 23.9-yr PBS038 (Rp6.2tn; 15.9%), and shorter-tenor SPNS series, i.e., 1-mo SPNS (Rp4.6tn; 12%) and 6-mo SPNS (Rp3.2tn; 8.2%). The total SPNS bids accounted for 36.5% of the total auction demand, down from 48.5% in the previous auction, potentially reflecting competition from the resumption of twice-weekly SRBI auctions starting this week.
Despite the softer demand, the government issued Rp12tn, unchanged from the previous sukuk auction and above the Rp11tn target. The SPNS issuance was slightly lower than in the previous auction, totaling Rp4tn (vs. Rp5tn previously). As a result, the weighted average cost of funds increased to 4.84% (vs. 4.66% previously), while the average tenor lengthened to 4.23 years (vs. 2.38 years). The year-to-date sukuk issuance has reached Rp198.5tn, equivalent to more than 12.6% of the FY2026 target. We view the DMO s decision to maintain an upsized issuance positively, as it helps ease near-term supply pressure and supports yield stability.
Post-sukuk auction, INDOGB yields were mixed. The 5-yr FR109 edged up to 5.70% (+0.2 bps), and the 15-yr FR106 was unchanged at 6.53%, while the 10-yr FR108 and the 20-yr FR107 eased to 6.34% (-1.1 bps) and 6.59% (-2.1 bps), respectively. Offshore indicators remained supportive, with Indonesia s 5-yr USD sovereign yield easing to 4.43% (-0.3 bps) and the 5-yr CDS tightening to 73.11 bps. However, foreign investors snapped a 5-day buying streak, posting net outflows of Rp2.3tn, one of the largest daily outflows this year.
Rupiah government bond trading activity moderated, with the daily turnover declining to Rp31.2tn (vs. Rp38.5tn prior). The 4.5-yr FR0104 led trading at Rp3.0tn, followed by the 9.5-yr FR0103 at Rp2.5tn, both recording price declines and higher yields, i.e., 102.90 (-0.19%), yielding 5.75% (+5.00 bps), and 102.86 (-0.33%), yielding 6.34% (+4.72 bps), respectively.
Based on the latest DMO data as of 26-Jan, foreign ownership of government bonds edged up slightly to Rp881.3tn, or 13.22% of the outstanding. Year to date, insurance and pension funds have been the largest net buyers (+Rp23.3tn), followed by onshore banks (+Rp23.1tn) and other investors (+Rp21.1tn, mostly coming from private placement program). Mutual funds, Bank Indonesia, and foreign investors also recorded net purchases of Rp16.9tn, Rp9.8tn, and Rp2.6tn, respectively, while retail investors remained net sellers with Rp2.0tn.
Meanwhile, the rupiah strengthened further by 0.28% to Rp16,712/USD, in line with continued US dollar weakness. In equities, the JCI pared early losses and closed slightly higher at 8,980.23 (+0.05% DoD; YTD: +3.80%), despite a lower turnover of Rp27.4tn. Foreign investors reversed into net selling of Rp1.6tn. Regionally, Asian equities closed higher, led by gains in the Hang Seng (+1.35%) and the Nikkei (+0.85%).
Domestic Corp Bond Market
On the corporate side, trading activity eased on Tuesday (27-Jan), with total volume declining to Rp2.2tn (vs. Rp3.8tn on 26-Jan). Turnover remained below the prior week s daily average of Rp3.1tn and the 2026 YTD average of Rp 3.6tn, the 2025 daily average of Rp4.0tn.
The RMKE01BCN1 series (maturing on 9-Jul-28), rated idA, led the segment with Rp208bn in trading volume. Its price rose to 103.84 (+2.29%), while the yield declined sharply to 7.03% (-103.59 bps). This was followed by the MYOR03BCN3 series (maturing on 23-Dec-32), rated idAA which recorded Rp100bn in trading volume. Its price rose to 100.00 (+0.05%), while the yield declined to 6.15% (-0.93 bps). Close behind was the SMMBMA01ACN2 series (maturing on 27-Aug-26), rated idA(sy), which recorded Rp97bn in trading volume. Its price rose slightly to 99.15 (+0.08%), while the yield declined to 9.00% (-3.46 bps).
Pefindo has assigned idA rating with stable outlook for PT Darma Henwa Tbk (DEWA). According to Pefindo, the rating reflects DEWA s strategic importance to the shareholder as well as strong revenue visibility. Meanwhile, the rating is constrained by moderate capital structure amid the expansion mode, as well as exposure to fluctuating commodity prices and tight competition in the industry.
Pefindo has affirmed idA rating to PT Integrasi Jaringan Ekosistem (IJE) s and its outstanding Bond II. Pefindo has also affirmed idA(sy) rating to the IJE s Sukuk Ijarah I. Outlook for the corporate rating is stable. According to Pefindo, the rating reflects the benefits of a good quality infrastructure, potential exponential revenue growth from its business expansion, and conservative capital structure. Meanwhile, the rating is constrained by the risk to demonstrate a stable performance given IJE s relatively new in the operating stage and regulatory risks related to network expansion.
