HIGHLIGHTS

  1. As of October 15, 2024, the yield on 10-year Indonesian Government Bonds increased to 6.693%, up from 6.681% the previous day. Meanwhile, the UST 10yr yield fell to 4.03%, from 4.08% the previous day.
  2. The volume of government bond transactions reached IDR 51.27 trillion, primarily driven by medium-term bonds (5-15 years). This marks an increase from the prior day's volume of IDR 37.13 trillion and exceeds the year-to-date average of IDR 45.85 trillion. The outright transaction volume was IDR 35.85 trillion, significantly higher than the previous day's IDR 11.56 trillion
  3. In contrast, the total volume of corporate bonds was recorded at IDR 1,483 billion, with a predominance of short-term bonds (less than 5 years). This represents a decline from the previous day's volume of IDR 2,219 billion and is below this year's average of IDR 1,919 billion. The outright transaction volume also fell to IDR 1,330 billion, down from IDR 1,968 billion the day before.
  4. The Rupiah depreciated by 0.13% against the US Dollar, settling at IDR 15,580 compared to IDR 15,560. The Jakarta Composite Index (JCI) rose by 0.89%, increasing from 7,560 to 7,627. Meanwhile, Brent crude oil prices decreased from USD 80.05 to USD 77.93 per barrel, and the WTI Cushing crude oil spot price fell from USD 75.56 to USD 73.83 per barrel.

GLOBAL UPDATES

  1. The Ministry of Housing and Urban-Rural Development, along with officials from the PBoC and MoF, will appear at a news conference on Thursday to promote steady and healthy development of the property sector. (Bloomberg)

DOMESTIC UPDATES

  1. Indo Trade surplus reached USD3.26bn in Sep-24, driven by non-oil and gas surplus that hits highest level since Apr-24. Deficit with China narrowed to USD0.63bn in Sep-24 from USD1.1bn in Aug-24. Cumulatively, the surplus stood at 21.98bn in 9M24 , down from 27.72bn in 9M23. Surplus with the US and India, as two largest surplus generators, increased compared to last year but still lower than the widening deficit with China. Export grew 6.44% y-y to USD22.08bn in Sep-24, driven by Mineral Fuels, Precious Metals & Jewelry, and Cocoa. Cumulative export as of 9m24 grew for the first time in 2024. Import rose by 8.5% y-y to USD18.82bn in Sep-24, but drop 8.9% m-m. (BPS)
  2. FDI to Indonesia rose by 18.6% y-y to IDR232.7tn in 3Q24 with investment mainly coming from Singapore, Hongkong, and China. Domestic Direct Investment rose 11.6% y-y to IDR198.8tn during the same period. Jakarta still become the main destination for direct investment, followed by West Java and East Java. The biggest investment was in Basic Metal industry. Cumulatively, total investment reached IDR1,261tn , on track to reach IDR1,650tn by the end of the year. (Ministry of Investment)
  3. Indonesia's unhusked rice production is estimated at 62.66mn tons , 2.45% lower than 2023, according to BPS. Milled rice production is expected to decline to 30.34mn tons vs. 31.1mn tons. Harvest Areas seen shrinking to 10.05mn ha vs. 10.21mn ha. (Bloomberg)
  4. The results of the Government Securities auction on October 15 showed a total incoming bid of IDR 44.27 trillion, higher than the previous auction on October 1, 2024 of IDR 46.65 trillion. The series that has the largest incoming bid is the FR0103 series with a yield range of 6.67% - 6.81% with incoming bids reaching IDR 15.21 trillion and followed by FR0104 and SPN12251002 which attracted bids of IDR 12.08 trillion and IDR 5.02 trillion respectively with a yield range of 6.38% - 6.52% for the FR0104 series and the SPN12251002 series has a yield range of 6.10% - 6.30%. Meanwhile, the nominal won in this auction amounted to IDR 25 trillion, higher than the government's target of IDR 22 trillion and also the previous auction of IDR 24 trillion. Thus the bid-to-cover ratio of this auction is 1.77x. (DJPPR)

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