One Pager Series — SIMINVEST Bond Pharos
Indonesian government bond yields rose across all benchmark tenors, with the 10-year yield increasing 20.2 bps to 7.42% and steepening the 5Y–10Y curve, while the INDOBeX Composite edged up 0.02%. Domestically, Indonesia faces mounting economic and institutional risks amid weakening middle-class purchasing power, rupiah depreciation, fiscal concerns, and declining investor confidence following MSCI’s transparency warning, negative sovereign outlooks from Moody’s and Fitch, and the departure of key economic policymakers. The government will auction IDR10tn in sovereign sukuk on 20 October, with settlement scheduled for 22 October 2026. Globally, the US FY2026 fiscal deficit reached nearly USD2tn, highlighting persistent fiscal pressures, while industrial production exceeded expectations in September. In the domestic credit market, PEFINDO withdrew the idAAA rating on BRI’s Sustainable Bond I Phase II 2023 Series C, worth IDR500bn, following full repayment on 19 October 2026.