Rupiah-denominated assets weakened on Thursday (2-Apr) as escalating geopolitical tensions in the Middle East weighed on market sentiment. The JCI declined by -2.19% to 7,026.78 (vs. +1.93% prior, or YTD: -18.74%), with turnover easing to Rp12.8tn (vs. Rp16.4tn prior, or YTD avg.: Rp27tn). Foreign investors remained net sellers, recording outflows of -Rp813.5bn (vs. -Rp165.5bn prior, or YTD: -Rp33.8tn). Regionally, Asian equities were also under pressure, led by the KOSPI Index (-4.47%) and the Nikkei Index (-1.72%), following heightened concerns about further military escalation involving Iran.<\/p>\n\n\n\n
In the bond market, the recent rally paused, with yields mostly edging higher despite continued foreign inflows of Rp595bn. The 5-yr FR109 yield rose to 6.48% (+3 bps), while the 15-yr FR106 and 20-yr FR107 yields increased marginally. In contrast, the 10-yr FR108 yield declined slightly to 6.63% (-1.8 bps). Offshore, Indonesia s 5-yr USD sovereign yield rose to 4.89% (+4.5 bps), while the 5-yr CDS widened to 97.18 bps. Meanwhile, the rupiah weakened by -0.14% to Rp17,000\/USD, in line with a firmer US dollar amid expectations for a higher-for-longer Fed stance.<\/p>\n\n\n\n
Trading activity remained solid, with government bond turnover rising to Rp54.8tn (vs. Rp49.1tn prior; YTD avg.: Rp33.9tn). The short-end FR0086 (Apr-2026 maturity) led the activity with Rp4.2tn in volume, followed by the 9.3-yr FR0103 and 5-yr FR0109, which recorded Rp3.4tn and Rp3.3tn, respectively.<\/p>\n\n\n\n
On the investor side, foreign holdings declined to Rp852.8tn (12.6% of outstanding) as of 1-Apr. Year-to-date, demand has been dominated by domestic investors insurance companies and pension funds (+Rp61.1tn), banks (+Rp54.4tn), and Bank Indonesia (+Rp51.1tn) while foreign (-Rp25.8tn) and retail (-Rp5tn) investors remained net sellers.<\/p>\n\n\n\n
On a weekly basis, rupiah assets were mixed. The JCI declined by -0.95% WoW, while the 10-yr INDOGB yield fell 20 bps WoW, and the rupiah weakened slightly by -0.14% WoW. Foreign investors recorded equity outflows of -Rp2.95tn, but remained supportive in bonds with +Rp7.14tn of inflows. Bond market liquidity also improved, with the average daily turnover rising to Rp40.4tn, led by active trading in the 5-yr FR0109 benchmark.<\/p>\n\n\n\n
Domestic Corp Bond Market<\/strong><\/p>\n\n\n\n On the corporate side, trading activity strengthened on Thursday (2-Apr), with total volume doubling to Rp12.1tn (vs. Rp6.9tn on 2-Apr). Turnover came in above the prior week s daily average of Rp10.2tn, and the 2026 YTD average of Rp 7.0tn.<\/p>\n\n\n\n The WISL01ACN3 series (maturing on 27-Mar-27), rated idA, was the most actively traded with a total volume of Rp656bn. Its price increased to 99.98 (+0.32%), while the yield fell to 5.77% (-33.60 bps). This was followed by the ARKO01AGN series (maturing on 8-Aug-26), rated idA+ with a volume of Rp483bn. Its price increased to 100.84 (+0.01%), while the yield declined to 7.01% (-6.64 bps). Close behind was the WISL02B series (maturing on 8-Aug-26), rated idA with a volume of Rp333bn. Its price declined to 100.19 (-0.06%), while the yield increased to 7.43% (+17.61 bps).<\/p>\n\n\n\n Over the week, average daily corporate bond trading volume increased to Rp11.4tn (vs. Rp10.2tn in the prior week). The WISL01ACN3 series (maturing on 27-Mar-27), rated idA, emerged as the most actively traded corporate bond, recording total weekly trading volume of Rp2.1tn.<\/p>\n\n\n\n Fitch Ratings Indonesia has assigned PT Asuransi Candi Utama a National Insurer Financial Strength (IFS) Rating of A-(idn) with a Stable Outlook. The rating reflects a combination of strong capitalisation, a moderate business profile, improving profitability, and a conservative investment strategy, although partly offset by high reliance on reinsurance. Candi s key strength lies in its solid regulatory capital position, with an RBC ratio of 392% well above both the industry average and minimum requirement providing a strong buffer against risks. Operationally, performance is improving, as seen in a better combined ratio and stable profitability, although still relatively early-stage given the company s recent establishment and small market share. However, the rating is constrained by heavy dependence on reinsurance due to its small scale and exposure to catastrophe risks, which also raises counterparty risk through high reinsurance recoverables. Overall, the Stable Outlook indicates Fitch s expectation that Candi will maintain adequate capital and continue gradually improving its earnings profile.<\/p>\n\n\n\n Fitch Ratings has affirmed PT Perusahaan Gas Negara (Persero) Tbk (PGN) s ratings at BBB- (IDR) and AA+(idn) (National) with a Stable Outlook. The ratings reflect PGN s strategic role as Indonesia s leading gas distributor, its conservative financial profile with a net cash position, and moderate support from its parent, PT Pertamina (Persero). Operational performance remains stable, with distribution volumes expected to recover supported by increasing LNG supply. However, profitability is constrained by regulated gas price caps and broader regulatory risks in the sector. Overall, the Stable Outlook indicates Fitch s expectation that PGN will maintain solid financial performance and remain closely aligned with Pertamina s credit profile.<\/p>\n\n\n\n