HIGHLIGHTS
- The yield on 10-year Indonesian Government Bonds stood at 6.867% on June 2, 2025, slightly higher than the previous day's level of 6.838%. Meanwhile, UST 10yr yield rose by 5bps to 4.46% yesterday.
- The total trading volume of government bonds reached IDR78.30 trillion, with transactions predominantly concentrated in short-term tenors (less than 5 years). This marked an increase from the previous day's volume of IDR57.29 trillion and was well above the year-to-date (YTD) average of IDR49.71 trillion. Outright transactions amounted to IDR27.52 trillion, rising from IDR23.92 trillion recorded the day before.
- Meanwhile, corporate bond trading volume totaled IDR1.93 trillion, also dominated by short-term tenors (less than 5 years). This represented a decline from the previous day's volume of IDR5.19 trillion and was below the YTD average of IDR2.89 trillion. Outright transactions fell to IDR1.91 trillion from IDR5.11 trillion in the previous session.
- The Rupiah appreciated against the US Dollar by 0.26%, strengthening to IDR16,248 from IDR16,290. In contrast, the Jakarta Composite Index (JCI) declined by 1.54%, closing at 7,065 compared to 7,176 previously. Meanwhile, Brent crude oil dropped from USD64.26 to USD63.91 per barrel, and WTI Cushing crude oil spot price edged down from USD60.89 to USD60.79 per barrel.
DOMESTIC UPDATES
- The Government of Indonesia is scheduled to conduct a Government Securities (SUN) auction on Tuesday, June 3, 2025, as part of its strategy to support the financing of the 2025 State Budget (APBN). The auction will offer a mix of instruments, including two newly issued series—SPN03250903 and SPN12260604—alongside reopenings of existing benchmark series: FR0104, FR0103, FR0106, FR0107, FR0102, and FR0105. The government has set an indicative issuance target of IDR 26 trillion for this auction. BRI Danareksa Sekuritas projects that the total incoming bids for the upcoming auction may fall between IDR 70 trillion and IDR 80 trillion, with an anticipated bid-to-cover ratio ranging from 2.69x to 3.08x. (Sources: MoF, BRIDS Estimated)
- Indonesia recorded a USD0.16bn trade surplus in Apr-25 —the smallest in five years—driven by an 18.9% y-y surge in raw material imports. Exports rose 5.8% y-y, led by strong gains in manufacturing (13.9%) and agriculture (59.8%), while mining exports fell sharply (-20.7%). Imports jumped 21.8% y-y, with a notable 53.7% rise in shipments from China. (BPS)
- Indonesia’s inflation eased to 1.60% y-y in May-25, as deflation in the Volatile category (-1.2% y-y; -2.5% m-m) offset gains elsewhere. Core inflation rose to 2.4% y-y, mainly driven by gold jewelry and cooking oil, while Administered prices increased 1.4% y-y. Gold jewelry was the top contributor to annual inflation (0.47ppt), surpassing the combined impact of the Food, Beverage, and Tobacco category (0.3ppt). (BPS)
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