HIGHLIGHTS
- The yield on Indonesia’s 10-year Government Bonds declined to 6.780% on May 21, 2026, from 6.821% in the previous trading session. Meanwhile, the 10-year UST yield remained unchanged at 4.57% yesterday.
- Government bond trading volume reached IDR49.45 trillion, predominantly driven by short-term tenors (<5 years). The volume increased compared to the previous day’s transaction value of IDR42.39 trillion and was slightly above the year-to-date (YTD) average of IDR49.43 trillion. Meanwhile, outright transactions amounted to IDR22.04 trillion, rising from IDR19.57 trillion recorded a day earlier.
- In the corporate bond market, total trading volume was recorded at IDR9,114 billion, with activity mainly concentrated in short-term maturities (<5 years). The transaction volume increased from the previous day’s level of IDR8,397 billion and remained well above the YTD average of IDR3,313 billion. Outright transactions stood at IDR9,071 billion, higher than the previous day’s realization of IDR8,352 billion.
- Meanwhile, the Rupiah depreciated by 0.28% against the US Dollar to IDR17,654 from IDR17,605. The Jakarta Composite Index (JCI) declined by 3.54%, falling from 6,319 to 6,095. In the commodities market, Brent crude oil prices eased to USD104.74 per barrel from USD105.02, while WTI Cushing Crude Oil Spot prices slipped to USD98.16 per barrel from USD98.26.
GLOBAL UPDATES
- Fed minutes showed a growing number of officials are considering potential rate hikes if inflation remains persistently above the 2% target, reflecting rising concerns over inflation pressures from the Iran war and elevated oil prices. Many policymakers preferred removing the Fed’s easing bias and signaling that the next policy move could be a hike rather than a cut. While the Fed kept rates unchanged at 3.5%-3.75% in April, markets are now pricing in a meaningful chance of a 25 bps rate hike by end-2026, supported by resilient labor market data and stronger-than-expected inflation. (Bloomberg)
DOMESTIC UPDATES
- The government intensified preparations for the implementation of new DHE SDA rules starting June 2026, requiring exporters to place 100% of export proceeds in domestic banks, with retention requirements of 30% for 3 months for mining exports under bilateral agreements and 100% for 12 months for non-oil and gas sectors. Bank Indonesia will expand DHE placement instruments beyond special accounts to include FX term deposits, SVBI, SUVBI, FX-denominated government bonds, and yuan-based instruments, while OJK plans regulatory relaxations by allowing DHE funds as cash collateral and exempting certain DHE-backed financing from lending limit calculations to support banking liquidity and business financing. (CNBC Indonesia)
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