HIGHLIGHTS
- The yield on Indonesia’s 10-year government bonds rose to 6.804% on May 18, 2026, from 6.691% in the previous trading session. Meanwhile, the UST 10-year yield rose by 2 bps to 4.61% yesterday.
- Government bond trading volume reached IDR55.92 trillion, primarily concentrated in short-term maturities (<5 years). The volume declined from the previous day’s transaction value of IDR63.01 trillion, although it remained above the year-to-date average of IDR49.43 trillion. Meanwhile, outright transactions totaled IDR26.55 trillion, increasing from IDR16.61 trillion recorded in the prior session.
- In the corporate bond market, total trading volume amounted to IDR8.92 trillion, also dominated by short-term maturities (<5 years). The transaction volume increased significantly compared to the previous day’s IDR5.01 trillion and remained well above the year-to-date average of IDR3.31 trillion. Outright transactions were recorded at IDR8.92 trillion, rising from IDR5.01 trillion in the preceding session.
- Meanwhile, the Indonesian Rupiah depreciated by 1.09% against the US Dollar to IDR17,656 from IDR17,465. The Jakarta Composite Index (JCI) fell by 1.85%, declining from 6,723 to 6,599. In the commodities market, Brent crude oil prices increased to USD110.15 per barrel from USD105.63 per barrel, while WTI Cushing Crude Oil Spot prices advanced to USD106.40 per barrel from USD101.02 per barrel.
GLOBAL UPDATES
- China’s retail sales growth slowed sharply to 0.2% YoY in April 2026 from 1.7% in March, marking the weakest expansion since December 2022 and missing market expectations, as the Iran war weighed on consumer demand. Weakness was broad-based, led by declines in automobile sales (-15.3%), home appliances (-15.1%), building materials (-13.8%), and furniture (-10.4%). Meanwhile, catering revenues rose 2.2%, highlighting stronger services demand. Retail sales excluding automobiles increased 1.8%, while monthly retail sales fell 0.5% after a 0.1% decline in March. (CNBC)
DOMESTIC UPDATES
- The Government is scheduled to hold an auction of Government Sharia Securities (SBSN), or Sovereign Sukuk, on Tuesday, May 19, 2026. The series offered will include SPNS13072026, SPNS23112026, SPNS03022027, PBS030, PBS040, PBSG002, PBS034, and PBS038 (reopening), with an indicative issuance target set at IDR12 trillion. BRI Danareksa Sekuritas estimates that total incoming bids in the upcoming auction could reach IDR20–30 trillion, with an expected bid-to-cover ratio of 1.67x–2.50x. (MoF, BRIDS Estimate)
- Indonesia’s external debt growth slowed to 0.8% YoY in 1Q26 with total external debt reaching USD 433.4 billion, compared with 1.9% growth in Q4 2025. Government external debt rose 3.8% YoY to USD 214.7 billion, supported by foreign inflows into global government bonds, while private external debt contracted 1.8% YoY to USD 191.4 billion due to lower borrowing by financial and non-financial corporations. BI stated Indonesia’s external debt structure remained healthy, with the external-debt-to-GDP ratio declining to 29.5% and long-term debt accounting for 85.4% of total external debt. (Bank Indonesia)
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