INDONESIA D AILY ECONOMIC UPDATE
                                      Tuesday, January 30, 2018



ECONOMIC HIGHLIGHTS
 The government plans to introduce a new electricity price formula, which will take into account the coal
     reference price (HBA), by March at the latest in an effort to ease the financial burden on state electricity
     firm PLN
    Despite Bank Indonesia (BI) prohibiting the use of digital currencies like Bitcoin as a payment
     instrument, the central bank is considering issuing a cryptocurrency or digital rupiah.
    State construction firm PT Wijaya Karya (Wika) listed its global rupiah-denominated “Komodo” bonds
     on the London Stock Exchange on Monday. It aims to collect Rp 5.4 trillion (US$405 million) from the
     debt papers, which will be used for investments and funding infrastructure projects.
    The government is preparing a new policy package specifically for the export and import business
     sectors.
    Badan Pusat Statistik (BPS) says cigarettes gives significant contribution for poverty, both in cities and
     rural areas.

DAILY INDONESIAN FINANCIAL INDICATORS

                                                                                Change                  Change or total
                                                         Date of                 since
                                                                      Unit
                                            Latest        latest                  last        In last       In last    Year-to-
                                            value         value                 trading       week*         month*      date
                                                                                  day

Stock market
Jakarta Composite Index                        6,575      30 Jan                    -1.6%       -0.9%          3.5%         3.5%
                  Net purchases by             -1.19      30 Jan      IDR, tn           --        -0.6           3.1          3.1
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia             13,465      30 Jan                     1.0%        1.1%          -0.6%       -0.6%
                       Bloomberg              13,434      30 Jan                     0.5%        0.8%          -0.9%       -0.9%

Government bonds
              Yield: 1 year IDR bond            5.0%      30 Jan         bps           5.0          3             -7           -7
              Yield: 5-year IDR bond            5.9%      30 Jan         bps           7.0         13            -67          -67
             Yield: 10-year IDR bond            6.5%      30 Jan         bps           0.7         12             47           47
       Foreign holdings of IDR bonds             874      29 Jan      IDR, tn            --        -4             38           38
   Indonesia USD bonds strip spread              151      29 Jan         bps           1.0         -1            -15          -15
        Asia USD bonds strip spread              144      29 Jan         bps           1.8          2            -11          -11
 Indonesia sovereign CDS: 5yr, mid-                80     29 Jan         bps           0.0         -1             -8           -8
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 201    29 Jan          bps            2              3        -20          -20

Interest rates
                     JIBOR overnight            3.9%      30 Jan          bps         -0.4        -2.1           0.7          0.7
                 JIBOR spread relative          -34.3     30 Jan          bps         -0.4        -2.1           0.7          0.7
                         to policy rate

International reserves                         130.2      29 Dec    USD, bn              --          --          3.6         24.3

* One week and month prior to latest observation




SOURCES
Data are taken from the following: the latest Jakarta Stock Exchange and Indonesian government IDR bond yield data are taken from
the Indonesian Stock Exchange (www.idx.co.id). BI JIBOR and IDR mid exchange rates from Bank Indonesia (www.bi.go.id), after 5
pm each day. BI reports international reserves data directly. The Directorate General of Debt Management at the Indonesian Ministry
of Finance provides data on the foreign holdings of IDR government bonds (www.dmo.or.id). The CDS premium on 5-year Indonesian
government USD bonds and Indonesian corporate bond spreads are sourced from JPMorgan.