INDONESIA D AILY ECONOMIC UPDAT E
                                    Wednesday, 4 September 2019



ECONOMIC HIGHLIGHTS


     •    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.




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                         6,270      04 Sep                     0.1%        -0.2%          1.5%         1.2%
                  Net purchases by              -0.84      04 Sep      IDR, tn           --         -1.8         -10.1         57.1
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia              14,218      04 Sep                     0.0%        -0.3%          -0.1%       -1.8%
                       Bloomberg               14,160      04 Sep                    -0.5%        -0.7%          -0.7%       -1.6%

Government bonds
              Yield: 1 year IDR bond            6.2%       04 Sep         bps           -4.2          -4           -15          -62
              Yield: 5-year IDR bond            6.9%       04 Sep         bps            0.1           1           -23         -109
             Yield: 10-year IDR bond            7.5%       04 Sep         bps           -0.8           3           -19          -62
       Foreign holdings of IDR bonds            1,011      03 Sep      IDR, tn             --         -1            -8          118
   Indonesia USD bonds strip spread               184      03 Sep         bps           -0.6          -8            -1          -53
        Asia USD bonds strip spread               188      03 Sep         bps           -0.1          -4             4          -30
 Indonesia sovereign CDS: 5yr, mid-                89      03 Sep         bps           -1.0          -5            -1          -48
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 317     03 Sep          bps          4.0               0         14          -95

Interest rates
                             IndONIA             5.3%      03 Sep          bps          1.1         -0.6         -32.0        -60.6
               IndONIA spread relative           -20.4     03 Sep          bps          1.1         -0.6          -7.0        -10.6
                         to policy rate

International reserves                          125.9       31 Jul   USD, bn               --         --           2.1          5.2

* 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 IndONIA 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.djppr.kemenkeu.go.id). The CDS premium on 5-
year Indonesian government USD bonds and Indonesian corporate bond spreads are sourced from JPMorgan.