HIGHLIGHTS
- The yield on the 10-year Indonesian Government Bond rose to 6.760% on June 2, 2026, from 6.720% on the previous trading day, indicating a modest increase of 4 bps. Meanwhile, the 10-year UST yield fell by 1 bps to 4.46% yesterday.
- Government bond trading volume reached IDR 65.34 trillion, dominated by short-term tenors (less than 5 years). Although lower than the previous day's transaction volume of IDR 83.92 trillion, the figure remained above the year-to-date (YTD) average of IDR 49.43 trillion. Meanwhile, outright transactions increased slightly to IDR 27.33 trillion, compared with IDR 27.03 trillion recorded on the previous day.
- In the corporate bond market, total trading volume amounted to IDR 9.49 trillion, also dominated by short-term maturities (less than 5 years). This represented an increase from the previous day's volume of IDR 8.61 trillion and was significantly higher than the YTD average of IDR 3.31 trillion. Outright transactions reached IDR 9.48 trillion, up from IDR 8.61 trillion in the preceding trading session.
- In the currency market, the Indonesian Rupiah strengthened by 0.20% against the U.S. Dollar, appreciating to IDR 17,838/USD from IDR 17,874/USD previously. Meanwhile, the Jakarta Composite Index (JCI) advanced by 1.11%, rising from 6,127 to 6,195. In the commodities market, Brent crude oil prices increased from USD 92.05 to USD 93.25 per barrel, while WTI Cushing Crude Oil Spot prices rose from USD 87.36 to USD 90.43 per barrel. Overall, the gains in equity and commodity markets reflected an improvement in risk sentiment, despite the slight upward movement in government bond yields.
DOMESTIC UPDATES
- The Government's auction of SBSN held on June 2, 2026, recorded total bids of IDR 26.06 trillion, higher than the previous auction on May 19, 2026, which attracted IDR 18.80 trillion in incoming bids. The newly issued SPNS01032027 received the strongest demand, with IDR 5.34 trillion in bids at an average rate of 6.20%. This was followed by PBS030, which garnered IDR 5.15 trillion in bids at an average rate of 6.69%, and PBS038, which attracted IDR 3.41 trillion in bids at an average rate of 6.91%. Despite the strong demand, the government awarded IDR 8.85 trillion, below the indicative target of IDR 12 trillion. As a result, the auction recorded a bid-to-cover ratio of 2.94x, indicating healthy investor interest despite the lower awarded amount. (MoF)
- Indonesia’s Manufacturing PMI rose to 50.0 in May 2026 from 49.1 in April, indicating stable factory activity as domestic demand improved and new orders expanded at the fastest pace since February. However, export orders fell at the sharpest rate since August 2021 amid Middle East-related trade disruptions, while output contracted for a third straight month due to raw material shortages and supply constraints. Input cost inflation accelerated to its second-highest level on record, prompting the strongest increase in selling prices since October 2013, while employment and purchasing activity continued to decline. (S&P Global)
- Indonesia’s inflation accelerated to 3.08% YoY in May 2026 from 2.42% in April, while core inflation edged up to 2.59% YoY from 2.44%, indicating a modest increase in underlying price pressures. The rise in headline inflation was mainly driven by food prices, with volatile food inflation jumping to 6.24% YoY from 3.37%, led by rice, chicken, chili, shallots, and beef prices. Administered price inflation also increased to 2.07% YoY from 1.53%. On a monthly basis, CPI rose 0.28% MoM, reflecting broader price increases across food, housing, transportation, and services. (Statistics Indonesia)
- Indonesia’s trade surplus narrowed sharply to USD89.1mn in April 2026 marking the smallest surplus since April 2020, as imports jumped 22.49% YoY to a record USD25.21bn, slightly outpacing exports growth of 21.98% YoY to USD25.30bn. Export gains were driven by non-oil and gas shipments (+23.36%), particularly to the US (+38.72%), China (+29.56%), Japan (+10.03%), and ASEAN (+13.26%). Meanwhile, imports were supported by strong increases in raw materials (+24.56%), consumption goods (+42.90%), and capital goods (+5.64%). The narrower surplus largely reflected a USD3.4bn oil and gas trade deficit. (Statistics Indonesia)
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