HIGHLIGHTS
- The yield on 10-year Indonesia Government Bonds stood at 6.426% on September 10, 2025, slightly lower than 6.439% recorded the previous day. Meanwhile, UST 10yr yield declined further by 4bps to 4.04%, yesterday.
- Government bond trading volume reached IDR54.63 trillion, with activity largely concentrated in short-term tenors (< 5 years). This figure declined compared to the previous day’s IDR64.60 trillion but remained above the year-to-date (YTD) average of IDR50.12 trillion. Outright transactions amounted to IDR32.10 trillion, down from IDR43.90 trillion on the prior day.
- Total corporate bond trading volume was reported at IDR3.21 trillion, also dominated by short-term tenors (< 5 years). The volume increased from IDR2.40 trillion the previous day but was slightly below the YTD average of IDR3.32 trillion. Outright transactions reached IDR3.14 trillion, rising from IDR2.40 trillion in the prior session.
- On the currency and equity front, the Rupiah appreciated by 0.08% to IDR16,461 per USD from IDR16,475, while the Jakarta Composite Index (JCI) advanced 0.92% from 7,629 to 7,699. In commodities, Brent crude oil rose from USD66.36 to USD66.57 per barrel, and WTI Cushing crude increased from USD62.26 to USD62.63 per barrel.
GLOBAL UPDATES
- US producer prices unexpectedly fell 0.1% m-m in August 2025, the first decline in four months, defying expectations of an increase and reinforcing bets for a Fed rate cut next week. Core PPI excluding food and energy also slipped 0.1%, though the measure excluding trade services rose 0.3%. Services costs dropped 0.2%, driven by a sharp fall in wholesaler and retailer margins, while goods prices inched up 0.1%. On a y-y basis, PPI rose 2.6%, with tariff effects still weighing on pricing decisions. (Bloomberg)
DOMESTIC UPDATES
- Newly appointed Finance Minister Purbaya told parliament that the government will withdraw IDR 200 trillion from funds parked at Bank Indonesia and place it in state-owned banks to boost liquidity and lending. Approved by President Prabowo, the move aims to revive growth after a period of tight liquidity. The funds, drawn from idle state cash including SAL and SiLPA, are not loans but deposits to strengthen credit channels. Banks are barred from using them to buy government bonds or SRBI, ensuring support goes to the real sector. (MoF, DPR RI)
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