INDONESIA ECONOMIC WEEK IN REVIEW1 August 13-17, 2018 WEEKLY ECONOMIC HIGHLIGHTS  The Jakarta Composite Index fell 4.8 percent over the week, in line with major markets in the region.  The Rupiah depreciated against the US Dollar and Japanese Yen by 1.3 percent and 0.9 percent, respectively, but appreciated against the Euro by 0.5 percent over the week.  The Government raised IDR 16.5 trillion from the issuance of Rupiah-denominated bonds on 14 August.  Bank Indonesia (BI) Board of Governors agreed to raise the BI 7-Day Reverse Repo Rate by 25 basis points to 5.50 percent, while also raising the Deposit Facility (DF) and Lending Facility (LF) rates by the same amount to 4.75 percent and 6.25 percent, respectively.  BI recorded a current account deficit of USD 8.0 billion (equivalent to 3.0 percent of GDP) in Q2 2018.  The government is to improve the tax-free export proceeds deposit policy in an effort to keep the export proceeds (DHE) in the country.  The Ministry of Finance is to finalize a new regulation revising down the minimum amount tourists would need to spend in a store to get a value-added tax (VAT) refund from IDR 5 million to IDR 1 million.  The government is to increase the coal production quota by 100 million tons this year to 585 million tons. 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 5,784 16 Aug -4.8% -1.3% 0.0% -8.8% Net purchases by foreign investors -0.76 16 Aug IDR, tn -3.7 -1.8 -11.4 -51.8 Exchange rate: USD/IDR 14,621 15 Aug 1.3% 1.6% 3.6% 8.0% Government bonds Yield: 1 year IDR bond 6.1% 16 Aug bps 3.4 -4 -10 106 Yield: 5-year IDR bond 7.8% 16 Aug bps 22 20 73 179 Yield: 10-year IDR bond 8.1% 16 Aug bps 27 35 54 153 Foreign investor holdings of IDR 845 16 Aug IDR, tn -2.8 7.6 17.4 7.6 government bonds Indonesia USD bonds stripped spread 194 17 Aug bps 3 0 -7 33 Asia USD bonds stripped spread 187 17 Aug bps 1 -4 -1 36 Interest rates JIBOR overnight 5.3% 16 Aug bps 29 37 111 145 Spread relative to policy rate -16 16 Aug bps 4 12 11 20 International reserves 118.3 31 Jul USD, bn -- -1.5 -6.6 -11.9 * One week and month prior to the latest observation 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. INTERNATIONAL FINANCIAL MARKET INDICATORS Value on Change since Change over earlier period 8-Nov-16 Year on Year to 16-Aug-18 US 7 days 30 days 90 days year date Election STOCK MARKET Indonesia Composite Index 5,784 7.4% -1.8% -4.8% -1.3% 0.0% -8.8% Agriculture 1,584 -9.4% -9.4% 3.1% 10.8% 4.9% -1.8% Mining 1,966 40.7% 31.0% -6.1% -1.4% 4.2% 21.7% Finance 1,041 28.9% 5.6% -5.6% 2.1% 2.2% -8.1% Basic industry 782 46.5% 26.6% -5.0% 2.0% 2.6% 11.5% Consumer 2,331 -5.2% -6.5% -4.6% -3.9% -2.0% -18.5% Manufacturing 1,463 3.4% -0.1% -4.7% -1.1% 0.3% -11.0% Infras., utilities & trans 998 -8.0% -19.6% -4.5% -7.0% -0.2% -15.1% Australia 6,426 20.5% 10.3% 0.9% 2.2% 3.8% 4.2% H.K. 27,213 19.3% -0.5% -4.1% -3.4% -12.4% -10.8% Japan 22,204 29.3% 12.7% -0.4% -2.2% -3.2% -5.5% Malaysia 12,389 9.4% 0.9% -1.3% 2.7% -2.2% -0.8% Philippines 7,517 4.4% -6.9% -3.7% 1.8% -2.0% -13.8% Singapore 3,209 14.6% -1.8% -2.3% -0.9% -9.1% -6.4% Thailand 1,681 11.9% 7.1% -1.5% 3.4% -4.0% -5.5% U.S. S&P 500 2,850 33.7% 17.3% 0.6% 1.4% 5.1% 5.7% FOREIGN EXCHANGE RATES USD exchange rates: IDR 14,621 11.8% 9.6% 1.3% 1.6% 3.6% 8.0% Euro 0.88 -2.9% 2.7% 0.6% 2.8% 3.4% 5.9% Singapore Dollar 1.37 -1.0% 0.8% 0.6% 1.1% 2.4% 3.1% Thai Baht 33.20 -5.2% -0.1% -0.2% -0.2% 3.4% 2.4% Korean Won 1,124.90 -1.6% -1.1% -0.4% 0.1% 4.4% 6.0% Japanese Yen 110.70 6.0% 0.7% 0.0% -1.5% -0.2% -1.7% IDR cross rates: Euro 16,573 14.3% 5.4% -0.5% -1.6% -0.5% 1.9% 100 Yen 13,132 4.6% 8.4% 0.9% 2.6% 3.3% 9.3% 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.dmo.or.id) contains the most recent observation). Indonesian government USD bond spreads are sourced from DEC’s GEM dataset.