HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond declined to 6.802% on May 4, 2026, from 6.853% in the previous trading day. Meanwhile, the UST 10-year yield rose by 6 bps to 4.45% yesterday.
- Total government bond trading volume reached IDR55.37 trillion, primarily driven by short-term tenors (<5 years). This marked an increase from the prior day’s volume of IDR51.63 trillion and remained above the year-to-date average of IDR49.43 trillion. Meanwhile, outright transactions stood at IDR23.05 trillion, lower than the previous day’s level of IDR25.69 trillion.
- In the corporate bond market, total trading volume was recorded at IDR11.56 trillion, also dominated by short-term maturities (<5 years). This represented an increase from IDR9.35 trillion in the previous session and exceeded the year-to-date average of IDR3.31 trillion. However, outright transactions declined to IDR9.22 trillion from IDR9.35 trillion previously.
- On the currency front, the Indonesian Rupiah depreciated by 0.16% to IDR17,380 per USD from IDR17,353. Meanwhile, the Jakarta Composite Index (JCI) rose by 0.22%, closing at 6,972 from 6,957. In the commodities market, Brent crude prices declined to USD109.42 per barrel from USD114.01, while WTI Cushing crude prices fell to USD102.99 per barrel from USD105.07.
DOMESTIC UPDATES
- The Government of Indonesia is scheduled to conduct an auction of Surat Berharga Syariah Negara (SBSN) or sovereign sukuk on Tuesday, 5 May 2026, as part of its financing strategy. The instruments to be offered in this auction comprise SPNS01062026, SPNS12102026, SPNS03022027, PBS030, PBS040, PBS034, PBS005, and PBS038 (reopening). In this auction, the Government has set an indicative issuance target of IDR 12 trillion. BRI Danareksa Sekuritas estimates that total incoming bids in the upcoming auction could reach IDR30–40 trillion, with an expected bid-to-cover ratio of 2.50x–3.33x. (MoF, BRIDS Estimate)
- Indonesia’s Manufacturing PMI fell to 49.1 in April 2026 from 50.1, signaling the first contraction in factory activity in nine months amid rising costs and supply disruptions linked to the Middle East war. Output declined at the fastest pace in nearly a year, while employment and purchasing activity weakened. Input costs surged to a four-year high, prompting the sharpest increase in selling prices since 2013. New orders rose slightly due to advance buying, while business confidence dropped to a five-month low. (S&P Global)
- Indonesia’s inflation eased to 2.42% YoY in April 2026 (from 3.48%), the lowest since August 2025 and within the target range, driven by softer food (3.06% vs 3.34%) and administered prices. Core inflation also edged down to 2.44% (from 2.52%), indicating contained underlying pressure. Volatile food inflation slowed to 3.37% (from 4.24%). On a monthly basis, CPI rose 0.13% (vs 0.41% in March). Some categories saw higher prices, including transport (1.61%) and restaurants (1.93%). (Statistics Indonesia)
- Indonesia recorded a USD3.32bn trade surplus in March 2026, narrowing from USD4.33bn in March 2025 as exports declined while imports rose modestly. Exports fell 3.1% YoY to USD 22.53 billion, dragged by oil and gas (-11.84%) and weaker non-oil shipments (-2.52%), especially to the US (-12.83%) and EU (-17.63%), though exports to China grew 16.22%. Imports increased 1.51% YoY to USD19.21bn, led by capital goods (~5%). In Q1 2026, the trade surplus reached USD5.55bn, supported by resilient commodity and manufacturing exports. (Statistics Indonesia)
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