The rupiah assets continued to outperform on Thursday, led by a broad rally in INDOGBs and a stronger rupiah, while the JCI index slipped for a second day. The JCI fell -0.18% to 7,490.18 (vs. -0.15% on the previous day; YTD: +7.01%) despite continued foreign net buying of Rp666bn (vs. +Rp434bn on the previous day). Furthermore, the turnover in the secondary market rose to Rp16.8tn, which was above the YTD average of Rp13.5tn. Meanwhile, the regional sentiment was broadly positive amid rising Fed cut expectations after Minneapolis Fed s Kashkari flagged downside risks to the US economy. The Nikkei 225 Index rose +0.65% to 41,059.15 (YTD: +4.70%), and the Hang Seng Index climbed +0.69% to 25,081.63 (YTD: +24.73%).<\/p>\n\n\n\n
Government bonds rallied, further sending the yields down across tenors. According to Bloomberg, the 5-yr FR104 closed at 102.25 (yield: 5.97%, -7.2 bps), the 10-yr FR103 at 102.24 (yield: 6.44%, -2.2 bps), the 15-yr FR106 at 103.14 (yield: 6.79%, -3.0 bps), and the 20-yr FR107 at 102.97 (yield: 6.85%, -1.8 bps). Otherwise, the USD sovereign yield curve went up, with the 5-yr INDOGB price (Mar-2031) going down to 87.22 (yield: 4.46%, +0.6 bps). The Indonesian 5-yr CDS narrowed, falling to 74.64 bps (-0.29 bps). Meanwhile, the rupiah gained +0.45% to Rp16,290\/USD (vs. +0.09% on the previous day; YTD: -1.12%), supported by a continued decline in the DXY Index, which is now hovering near a 2-week low (~98.2) after 4 days of losses.<\/p>\n\n\n\n
According to IDX s OTC trading report, Indonesian government bond trading activity remained elevated on Thursday (7-Aug), although volume slipped slightly to Rp32.4tn (vs. Rp33.2tn on 6-Aug). While the figure stood below the prior week s daily average of Rp35.8tn, it remained well above both the 2025 year-to-date (YTD) daily average of Rp30.5tn and the 2024 daily average of Rp21.7tn. The 5-yr FR0104 series (maturing on 15-Jul-30) led market flows, recording a trading volume of Rp5.5tn. Its price inched up to 102.26 (+0.25%), pressing the yield lower to 5.96% (-6.11 bps). This was followed by the 10-yr FR0103 series (maturing on 15-Jul-35), which booked a trading volume of Rp3.0tn. The bond s price slipped to 101.00 (-0.83%), pushing the yield higher to 6.61% (+11.66 bps).<\/p>\n\n\n\n
On the flow side, based on the latest DMO data (as of 5-Aug), foreign holding in government bonds continued to fall, posting Rp933.7tn, at 14.56% of the total outstanding. Year-to-date, Bank Indonesia has been the biggest net buyer of government bonds (amounting to +Rp115.4tn), followed by onshore banks (+Rp72.3tn), insurance & pension funds (+Rp65.3tn), foreign investors (+Rp57tn), retail investors (+Rp40.7tn), other investors (+Rp17.4tn), and mutual funds (+Rp4.2tn).<\/p>\n\n\n\n
Indonesia s FX reserves dipped to USD 152bn in July, which was a 16-month low (vs. USD 152.6bn in June). The decline reflected external debt repayments and BI s rupiah stabilization efforts. Nevertheless, reserves remained robust and enough to cover 6.3 months of imports, or 6.2 months including government external debts, well above the international adequacy standard.<\/p>\n\n\n\n
Domestic Corp Bond Market<\/strong><\/p>\n\n\n\n On the corporate side, trading activity continued to weaken on Thursday (7-Aug), with volume declining to Rp2.4tn (vs. Rp3.4tn on 6-Aug). The figure fell below both the prior week s daily average of Rp5.3tn and the 2025 YTD average of Rp3.99tn, yet it remained comfortably above the 2024 daily average of Rp2.05tn.<\/p>\n\n\n\n The PIDL01CCN2 series (maturing on 30-Apr-30), rated idA+, topped the segment with a trading volume of Rp236bn. Its price retreated to 105.60 (-1.94%), lifting the yield to 9.03% (+52.28 bps). This was followed by the SWCARE01A series (maturing on 19-Jul-26), rated irA-(sy), which posted a trading volume of Rp225bn. The bond s price eased to 100.00 (-0.10%), nudging the yield higher to 8.25% (+10.75 bps).<\/p>\n\n\n\n Pefindo has affirmed idA- rating with stable outlook to PT Indonesia Paradise Property Tbk (INPP). At the same time, Pefindo has affirmed idAAA(cg) rating to INPP s Bond I Year 2025. The Bond s principal and interest payment are fully guaranteed by Credit Guarantee and Investment facility (CGIF, idAAA\/stable). According to Pefindo, the corporate rating reflects INPP s strong proportion of recurring income, good market presence with favorable asset quality, and strong brand of hotel chain. Meanwhile, the rating is constrained by INPP s moderate financial profile, risks associated with future projects, and its susceptibility to event-driven travel disruptions.<\/p>\n\n\n\n Pefindo has affirmed the ratings for PT Kereta Api Indonesia (Persero) (KAI) and its outstanding bonds at idAAA as well as its outstanding sukuk at idAAA(sy) . Outlook for the corporate rating is stable. Meanwhile, the rating reflects strong likelihood of government support, superior business position, as well as growing and stable revenue from freight transportation. Meanwhile, the rating is constrained by its moderate leverage and cash flow protection indicators amid the large capital expenditure (capex).<\/p>\n\n\n\n Pefindo has affirmed idBBB+ rating with a stable outlook to PT Bank Mayapada Internasional Tbk (Bank Mayapada). Pefindo has also affirmed idBBB- rating to Bank Mayapada s outstanding Subordinated Bond V\/2018. According to Pefindo, the rating reflects Bank Myapada s strong business position and adequate liquidity. Meanwhile, the rating is constrained by the Bank s weak asset quality, weak profitability, and below-average capitalization indicators.<\/p>\n\n\n\n