INDONESIA ECONOMIC WEEK IN REVIEW1 2 – 6 September 2019 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index dropped 0.3 percent last week, while most major markets in the region showed gains.  The Rupiah, over the week, appreciated against the U.S. Dollar, Euro and Japanese Yen by 0.7 percent, 0.8 percent and 1.2 percent, respectively.  The Government raised IDR 7 trillion from the issuance of Rupiah-denominated Sharia bonds on September 3.  Indonesia’s international reserves rose to USD 126.4 billion in August from USD 125.9 billion in July.  The Consumer Confidence Index decreased to 123.1 in August from 124.8 in July.  The government plans to gradually lower the corporate income tax beginning in 2021.  Investors will no longer need recommendations from the Indonesia Investment Coordinating Board (BKPM) to get stay permits. IDX composite index IDR/USD exchange rate Level (index) and weekly change (percent) Level (IDR/USD) and weekly change (percent) IDR 5-year government bond yield Indonesia USD EMBI Spread Level (percent) and weekly change (bps) Level (percent) and weekly change (bps) FINANCIAL MARKET INDICATORS Change or total: Date of Latest latest Year to Indicator value value Unit 7 days* 30 days* 90 days date Stock market Jakarta Composite Index 6,309 06 Sep -0.3% 3.1% 1.6% 1.8% Net purchases by foreign investors -0.09 06 Sep IDR, tn -1.4 -9.2 1.3 57.0 Exchange rate: USD/IDR 14,140 06 Sep -0.7% -1.4% -1.7% -2.8% Government bonds Yield: 1 year IDR bond 6.2% 06 Sep bps -4.0 -18 -36 -64 Yield: 5-year IDR bond 6.9% 06 Sep bps -3 -28 -72 -109 Yield: 10-year IDR bond 7.5% 06 Sep bps 0 -23 -64 -61 Foreign investor holdings of IDR 0 06 Sep IDR, tn -1009.6 -1014.9 -949.6 -893.4 government bonds Indonesia USD bonds stripped spread 180 06 Sep bps -4 -18 -18 -50 Asia USD bonds stripped spread 184 06 Sep bps -4 -11 -7 -30 Interest rates IndONIA 5.3% 06 Sep bps -60 30 -60 -60 Spread relative to policy rate -20 06 Sep bps -10 5 -10 -10 International reserves 126.4 30 Aug USD, bn -- 0.5 6.1 5.7 1DISCLAIMER This is an internal document and is not for wider circulation. All data and information are from third party sources unless otherwise noted (full list of sources provided at the end of the document). The accuracy of data, statistics or events presented in this document are not independently verified and the document reflects staff interpretation of recent economic developments. * One week and month prior to the latest observation INTERNATIONAL FINANCIAL MARKET INDICATORS Value on Change since Change over earlier period 8-Nov-16 Year on Year to 30-Aug-19 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 6,309 15.3% 9.2% -0.3% 3.1% 1.6% 1.8% Agriculture 1,342 -24.2% -15.1% -1.4% 2.0% -4.1% -14.2% Mining 1,692 21.6% -9.5% 4.9% 5.8% 2.6% -4.8% Finance 1,257 53.1% 19.2% -0.5% 1.0% 0.3% 7.0% Basic industry 909 67.0% 15.7% 2.8% 14.2% 19.4% 6.3% Consumer 2,359 -5.7% -0.4% -1.7% 2.2% -3.6% -8.2% Manufacturing 1,531 6.3% 4.3% -0.1% 5.1% 1.5% -5.4% Infras., utilities & trans 1,190 7.4% 20.0% -3.3% 2.8% 3.1% 11.8% Australia 6,753 26.4% 7.7% 0.8% 3.1% 3.5% 18.1% H.K. 26,691 16.5% -1.1% 3.8% 2.8% -1.0% 4.7% Japan 21,200 23.5% -5.7% 2.4% 3.0% 1.5% 5.9% Malaysia 11,121 -2.5% -10.1% -0.6% -0.9% -2.8% -2.9% Philippines 7,933 8.6% 3.9% -0.6% 2.1% -0.6% 6.3% Singapore 3,147 11.6% 0.0% 2.1% -0.7% -0.6% 3.1% Thailand 1,670 10.6% -1.4% 0.9% -0.1% 1.0% 6.8% U.S. S&P 500 2,979 39.2% 3.5% 1.8% 3.4% 3.7% 19.8% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,140 8.0% -5.0% -0.7% -1.4% -1.7% -2.8% Euro 0.91 0.1% 5.5% 0.1% 1.5% 2.2% 3.9% Singapore Dollar 1.38 -0.5% 0.5% -0.4% 0.1% 1.3% 1.1% Thai Baht 30.66 -12.4% -6.5% 0.0% -0.5% -2.2% -5.5% Korean Won 1,197 5.5% 6.5% -1.2% -1.5% 1.3% 7.3% Japanese Yen 106.97 2.5% -3.9% 0.4% 0.6% -1.4% -3.1% IDR cross rates: Euro 15,603 8.1% -10.0% -0.8% -3.1% -2.6% -6.3% 100 Yen 13,206 5.4% -1.3% -1.2% -2.3% 0.3% 0.4% UPCOMING EVENTS AND DATA RELEASES  Bank Indonesia’s Consumer Confidence Index (September 10, 2019) DATA SOURCES Data are taken from CEIC, with the following exceptions: the latest Jakarta Stock Exchange and Indonesian government IDR bond yield data are taken from the Indonesian Stock Exchange (www.idx.co.id), and IDR mid exchange rates from Bank Indonesia (www.bi.go.id), after 5 pm each day. BI reports international reserves data directly, with a lag of approximately two weeks. CEIC provides the latest BI JIBOR rates via a special direct data service. The Directorate General of Debt Management at the Indonesian Ministry of Finance provides data on the foreign holdings of IDR government bonds (www.djppr.kemenkeu.go.id) contains the most recent observation). Indonesian government USD bond spreads are sourced from DEC’s GEM dataset.