HIGHLIGHTS
- The yield on 10-year Indonesian Government Bonds stood at 6.845% as of May 22, 2025, slightly higher than the previous day's yield of 6.828%. Meanwhile, UST 10yr yield declined by 4bps to 4.54% as of yesterday.
- The total government bond trading volume reached IDR48.42 trillion, with activity largely concentrated in medium-term tenors (5–15 years). This marked a decline from the previous day’s volume of IDR62.35 trillion and was also below the year-to-date (YTD) average of IDR49.26 trillion. Meanwhile, outright transactions rose to IDR34.66 trillion, up from IDR29.47 trillion recorded in the prior trading session.
- Corporate bond trading volume amounted to IDR1.65 trillion, primarily in short-term tenors (less than 5 years). This represented a decrease from the previous day’s volume of IDR2.04 trillion and remained below the YTD average of IDR2.89 trillion. Outright transactions also declined to IDR1.64 trillion from IDR2.04 trillion in the preceding session.
- The Indonesian Rupiah appreciated by 0.40% against the US Dollar, strengthening to IDR16,330 from IDR16,395. At the same time, the Jakarta Composite Index (JCI) rose by 0.34%, closing at 7,167 from 7,142. In the commodity market, Brent crude oil prices slipped to USD65.42 per barrel from USD65.55, while WTI Cushing crude dropped to USD62.33 per barrel from USD62.56.
GLOBAL UPDATES
- President Trump’s tax bill passed the House, advancing a multi-trillion dollar package that avoids year-end tax hikes but adds USD4tn to the debt ceiling. With a Senate vote due by August to avert default, concerns over rising deficits are mounting—highlighted by Moody’s recent US credit rating downgrade. (Bloomberg)
DOMESTIC UPDATES
- Indonesia’s current account deficit narrowed to USD0.2bn (0.1% of GDP) in 1Q25 from USD1.1bn (0.3%) in 4Q24, supported by a larger non-oil & gas trade surplus amid falling imports. However, the services deficit widened due to fewer tourist arrivals, while primary income deficit rose on higher investment income payments. (Bank Indonesia)
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