HIGHLIGHTS
- The yield on the 10-year Indonesian Government Bond stood at 6.729% as of June 17, 2025, slightly lower than the previous day's level of 6.746%. Meanwhile, UST 10yr yield declined by 7bps to 4.39% yesterday.
- Government bond trading volume reached IDR58.49 trillion, primarily driven by medium-term tenors (5–15 years). Although this marked a slight decrease from the previous day’s volume of IDR59.07 trillion, it remained above the year-to-date (YTD) average of IDR50.26 trillion. Outright transactions rose significantly to IDR38.79 trillion, compared to IDR25.81 trillion recorded the day before.
- Corporate bond trading volume amounted to IDR1.96 trillion, dominated by short-term tenors (less than 5 years). This figure was marginally lower than the previous day’s volume of IDR1.97 trillion and fell below the YTD average of IDR2.88 trillion. Outright transactions also declined to IDR1.96 trillion from IDR1.97 trillion in the prior session.
- On the macro front, the Rupiah depreciated by 0.09% against the US Dollar to IDR16,280 from IDR16,265. Meanwhile, the Jakarta Composite Index (JCI) strengthened by 0.54%, rising from 7,118 to 7,156. In the commodity market, Brent crude fell to USD73.62 per barrel from USD75.19, while WTI Cushing declined to USD71.77 per barrel from USD72.98.
DOMESTIC UPDATES
- The results of the Government Securities (SUN) auction held on June 17, 2025, recorded total incoming bids of IDR81.03 trillion, surpassing the previous auction on June 3, 2025, which reached IDR77.18 trillion. The FR0103 series received the highest investor interest, with incoming bids amounting to IDR32.07 trillion and a yield range of 6.71%–6.85%. This was followed by the FR0104 and FR0106 series, which attracted bids of IDR20.23 trillion and IDR13.64 trillion, respectively. The FR0104 series was offered within a yield range of 6.32%–6.45%, while the FR0106 series was in the range of 6.95%–7.10%. The total awarded amount reached IDR30 trillion, exceeding the government’s indicative target of IDR26 trillion. Consequently, the auction recorded a bid-to-cover ratio of 2.70 times. (MoF)
- Indonesia’s fiscal deficit reached IDR21tn (0.09% of GDP) as of May 2025, with revenue at IDR995.3tn (down 11.4% y-y), achieving just 33.1% of the full-year target—below last year’s 40.1% for the same period. Spending also fell 11.3% y-y to IDR1,016.3tn, or 28.1% of the annual target (vs. 34.4% in 2023). Despite the deficit, the primary balance remained in surplus at IDR192.1tn, indicating that roughly 21% of spending went toward interest payments. (MoF)
- Bank Indonesia is set to announce the BI Rate today at around 2:30 PM. We expect BI to hold the rate steady at 5.50%, following last month’s rate cut, while likely shifting focus to non-policy rate expansionary measures to support growth. (BRIDS Economic Research)
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