HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond rose to 6.712% on May 12, 2026, from 6.616% in the previous trading day. Meanwhile, the UST 10-year yield rose by 4 bps to 4.46% yesterday.
- Government bond trading volume reached IDR48.09 trillion, primarily driven by short-term tenors (<5 years). The volume increased compared to the previous day’s transaction value of IDR39.86 trillion, although it remained slightly below the year-to-date average of IDR49.43 trillion. Meanwhile, outright transactions amounted to IDR24.07 trillion, higher than the IDR20.11 trillion recorded in the preceding session.
- In the corporate bond market, total trading volume stood at IDR5.93 trillion, also dominated by short-term maturities (<5 years). The volume improved from IDR5.26 trillion in the previous trading day and remained well above the year-to-date average of IDR3.31 trillion. Outright transactions were recorded at IDR5.93 trillion, increasing from IDR5.26 trillion previously.
- On the macro side, the Indonesian Rupiah depreciated by 0.51% against the US Dollar to IDR17,500 from IDR17,412. Meanwhile, the Jakarta Composite Index (JCI) declined by 0.68% to 6,859 from 6,906. In the commodities market, Brent crude oil prices rose to USD107.21 per barrel from USD104.21, while WTI Cushing Crude Oil Spot prices increased to USD101.31 per barrel from USD98.07.
GLOBAL UPDATES
- US inflation accelerated to 3.8% YoY while core inflation stood at 2.8% YoY in April 2026, the highest since May 2023 and above expectations. CPI was particularly driven by a sharp 17.9% surge in energy prices amid oil supply disruptions, followed by shelter and food. On a monthly basis, CPI rose 0.6%, while core inflation increased 0.4%, the fastest since January 2025. The hotter-than-expected data reinforces concerns that price pressures remain sticky and could delay potential Federal Reserve policy easing. (U.S. BLS)
DOMESTIC UPDATES
- The Government of Indonesia’s Surat Utang Negara (SUN) auction conducted on May 12, 2026 garnered total incoming bids of IDR51.40 trillion, declining from IDR74.95 trillion recorded in the previous auction on April 28, 2026. Among the offered series, FR0109 attracted the strongest investor interest with bids totaling IDR14.98 trillion and submitted yield ranges of 6.53%–7.00%. This was followed by FR0108, which received IDR7.48 trillion in bids with yield ranges of 6.58%–7.10%, while FR0107 recorded bids amounting to IDR5.18 trillion with incoming yields ranging from 6.80%–7.15%. The Ministry of Finance awarded IDR30.3 trillion during the auction, below the government’s indicative target of IDR36 trillion, resulting in a bid-to-cover ratio of 1.70x. (MoF)
- Indonesia’s retail sales growth slowed to 3.4% YoY in March 2026 from 6.5% in February, marking the weakest expansion since June 2025 as post-festive normalization and persistent cost pressures weighed on consumer spending. Slower growth was seen in food, beverages, and tobacco, while sales contracted for clothing, household appliances, and communication equipment. In contrast, automotive parts, recreational goods, and fuel sales improved. On a monthly basis, retail sales jumped 10.3%, the strongest increase in a year. Going forward, retail activity may soften amid higher fuel prices pressuring household purchasing power. (Bank Indonesia)
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