One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds rallied, with the 5Y yield (FR104) falling 11.7bps to 6.87% and the 10Y yield (FR0108) declining 4.3bps to 7.08%, steepening the 5Y–10Y curve by 7.4bps, while the INDOBeX Composite rose 0.17% to 439.349. Domestically, Indonesia’s fiscal deficit reached IDR240.1tn, or 0.93% of GDP, by end-August, while revenue grew 25.4% YoY and spending increased 17.1%, keeping the government on track toward its 2.85% of GDP full-year deficit target. Finance Minister Suahasil Nazara also confirmed that the government will maintain IDR299tn of SAL fund placements with state-owned banks through July 2027 to support lending and manage liquidity. Globally, US initial jobless claims fell to 196,000, pointing to continued labor-market resilience, while the Fed’s balance sheet edged up to USD6.75tn. Meanwhile, the Bank of Japan raised its policy rate by 25bps to 1.25%, its highest level since April 1995, as inflation and higher oil prices supported further policy normalization. On the credit front, PNMP’s idAAA(sy)-rated Social Sukuk Mudharabah Series A, with IDR2.2tn in cash and cash equivalents supporting repayment, will mature on October 27, 2026.