Bank Indonesia (BI) raised the BI-Rate by 25 bps to 5.75% at its June meeting, following the surprise 25-bps off-cycle hike on 9-Jun and the 50-bps increase in May. The cumulative 100-bps tightening since May brought the policy rate to its highest level since Apr-2025. BI also increased the Deposit Facility and Lending Facility rates by 25 bps to 4.75% and 6.50%, respectively.<\/p>\n\n\n\n
The decision underscored BI s commitment to supporting rupiah stability amid a more hawkish Federal Reserve, elevated US Treasury yields, a stronger US dollar, and persistent geopolitical uncertainties. Despite inflation accelerating to 3.08% YoY in May from 2.42% in April, BI remains confident that inflation will stay within its target range of 2.5% 1%. At the same time, BI is keeping its 2026 GDP growth forecast at 4.9 5.7%. Domestic demand remained resilient, supported by stronger bank lending growth of 11.5% YoY in May, solid deposit growth of 13.5% YoY, and ample banking system liquidity, with the loan-to-deposit ratio (LDR) at 86.6%. Beyond the rate hike, BI introduced additional measures to support the rupiah, including lowering the limit for FX purchases without underlying documentation to USD 10,000 from USD 25,000 and increasing the foreign funding ratio for commercial banks to 40% of capital from 35%, aiming to boost onshore FX supply.<\/p>\n\n\n\n
The higher policy rate supported the rupiah but weighed on government bond prices. The rupiah appreciated by 0.16% to Rp17,710\/USD (+0.9% MTD, -6.1% YTD). Meanwhile, government bond yields moved higher, particularly at the belly of the curve, with the 5-yr FR109 yield rising by 2.9 bps to 6.90% and the 10-yr FR108 yield increasing by 12.6 bps to 7.00%. Longer-tenor yields were broadly stable. Foreign investors remained net buyers, recording inflows of Rp155bn based on PLTE data. Indonesia s 5-yr USD sovereign yield rose 2.5 bps to 4.83%, while the 5-yr CDS edged up 0.3 bps to 86.4 bps.<\/p>\n\n\n\n
According to IDX s OTC trading report, Indonesian government bond trading activity moderated on Thursday (18-June), with total volume declining to Rp30.5tn (vs. Rp31.0tn on the previous day). Turnover came in above the prior week s daily average of Rp30.4tn, but below the 2026 YTD average of Rp 31.9tn, and the 2025 daily average of Rp32.0tn. The 5-yr FR0109 benchmark series (maturing on 15-Mar-31) led market activity, recording Rp5.1tn in trading volume. Its price declined to 96.10 (-0.72%), while the yield rose to 6.85% (+17.95 bps). This was followed the 2.1-yr PBS030 series (maturing on 15-Jul-28), recording Rp3.0tn in trading volume. Its price declined to 97.84 (-0.72%), while the yield increased to 7.01% (+37.86 bps). Close behind was the 10-yr FR0108 benchmark series (maturing on 15-Apr-36), with a total volume of Rp2.2tn. Its price declined to 97.65 (-0.20%), while the yield increased to 6.86% (+2.88 bps).<\/p>\n\n\n\n
The latest ownership data as of 17-Jun showed no indication of Bank Indonesia s intervention in the secondary market. Foreign investors continued to accumulate government bonds, recording net purchases of Rp1.6tn, while domestic banks remained net sellers at Rp1.9tn. On a year-to-date basis, insurance companies and pension funds remained the largest buyers with cumulative purchases of Rp126.9tn, followed by Bank Indonesia (Rp85.7tn), other domestic investors (Rp76.3tn), banks (Rp20.6tn), retail investors (Rp16.7tn), and mutual funds (Rp16.6tn). Foreign investors remained net sellers on a year-to-date basis, although outflows have slowed significantly to Rp6.8tn.<\/p>\n\n\n\n
Equities weakened, with the JCI falling 0.8% to 6,172 (+0.7% MTD, -28.6% YTD). Trading value reached Rp18.0tn, bringing the average daily turnover in 2026 to Rp24.5tn. Foreign investors recorded net equity outflows of Rp111bn, bringing the month-to-date and year-to-date outflows to Rp11.1tn and Rp65.1tn, respectively. Regional equity markets closed mixed, with the Nikkei rising 1.6%, while the Hang Seng fell 1.6%.<\/p>\n\n\n\n
On the corporate side, trading activity increased on Thursday (18-June), with total volume rising to Rp12.5tn (vs. Rp12.3tn on the previous day). Turnover came in below the prior week s daily average of Rp12.6tn, but above the 2026 YTD average of Rp7.9tn and the 2025 daily average of Rp4.0tn.<\/p>\n\n\n\n The PALM02BCN5 series (maturing on 26-Aug-28), rated idA, was the most actively traded with a total volume of Rp696bn. Its price declined to 97.60 (-3.60%), while the yield rose to 10.23% (+172.30 bps). This was followed by the BOLD03B series (maturing on 10-Oct-28), rated idA+ with a volume of Rp387bn. Its price declined to 95.79 (-0.72%), while the yield increased to 10.06% (+34.89 bps). Close behind was the PIDL01CN3 series (maturing on 27-Aug-30), rated idA+ with a volume of Rp368bn. Its price rose to 100.76 (+1.76%), while the yield declined to 10.02% (-51.60 bps).<\/p>\n\n\n\n Fitch Ratings Indonesia has affirmed PT Asuransi Sinar Mas’s (ASM) National Insurer Financial Strength (IFS) Rating at ‘AA+(idn)’. The Outlook remains Positive. According to Fitch, the Positive Outlook reflects ASM’s continued strengthening capitalisation and satisfactory profitability. The rating affirmation reflects its ‘Most Favourable’ company profile and stronger capitalisation metrics compared with other domestic non-life insurers.<\/p>","protected":false},"excerpt":{"rendered":" Bank Indonesia (BI) raised the BI-Rate by 25 bps to 5.75% at its June meeting, following the surprise 25-bps off-cycle […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[7],"tags":[],"class_list":["post-6950","post","type-post","status-publish","format-standard","hentry","category-market-research"],"_links":{"self":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/comments?post=6950"}],"version-history":[{"count":1,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6950\/revisions"}],"predecessor-version":[{"id":6951,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/6950\/revisions\/6951"}],"wp:attachment":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/media?parent=6950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/categories?post=6950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/tags?post=6950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Domestic Corp Bond Market<\/strong><\/p>\n\n\n\n