• Contractionary BI monetary policies pose further risk to liquidity. Usage of the excess budget could address growth risk and maintain stability.
  • Rate cuts remain on the table, with major central banks signaling imminent rate cuts. We expect more moderate cross-currency volatility.
  • China’s ultra bond introduction is expected to revive investment and offset soft domestic consumption, a key positive for Indonesia’s trade.



  • Caution to Liquidity Trend
  • Rate Cut Proposition Remains
  • China’s Growth Stimulus
  • Capital Market – Despite Stronger IDR, Foreign Inflow Remain Subdued
  • Fixed Income Flows
  • Planned Auction of State Sharia Securities (SBSN): May 20, 2024

This Week Key Focus

  • China Loan Prime Rate – May 2024 (Monday)
  • Current Account deficit widened to USD2.2bn (-0.64% of GDP) in 1Q24
  • Indonesia BI Rate – May-24 (Wednesday)


Last Week Key Events

Global Updates

  • US Inflation eased to 3.4% in April 2024

Domestic Updates

  • Trade Balance in Apr-24 reached USD3.56bn
  • Retail Sales increased by 9.3% y-y in Mar-24
  • Consumer Confidence rose to 127.7 in Apr-24



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