One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds weakened, with the 5Y yield (FR104) edging down 0.4bps to 6.94% while the 10Y yield (FR0108) rose 5.0bps to 7.15%, steepening the 5Y–10Y curve by 5.3bps, while the INDOBeX Composite fell 0.03% to 439.622. Global markets remained mixed as US initial jobless claims fell to 197,000, pointing to continued labor-market resilience, while the ISM Manufacturing PMI eased to 54.5 but remained in expansion territory. Domestically, Finance Minister Suahasil Nazara emphasized fiscal discipline and keeping the budget deficit below 3% of GDP, while noting that current market conditions do not warrant resuming government bond buybacks. Meanwhile, Indonesia retains room for global bond issuance in 4Q26 amid higher borrowing costs, with the recent global bond selloff widening external funding spreads. On the credit front, Fitch assigned AA+(idn) ratings to TBIG’s IDR2.37tn bond and sukuk issuance, in line with its National Long-Term Rating, supported by strong cash flow visibility from long-term lease contracts.