INDONESIA D AILY ECONOMIC UPDATE
                                      Thursday, 29 March 2018



ECONOMIC HIGHLIGHTS
 Indonesia’s International Investment Position recorded a net liability of USD 340.7 billion (33.6 percent of
     GDP), rising from the previous quarter of USD 330.7 billion at the end of fourth quarter 2017.
 The Directorate General of Taxation will improve the processing time of VAT restitution into one month
     from previously a year.
 The government will establish National Industry Committee (KINAS) to support industry roadmap 4.0.
 Credit growth accelerated to 8.2 percent yoy in February 2018 from 7.4 percent in January, and gross
     Non-Performing Loan also slightly increased to 2.88 percent yoy from 2.86 percent yoy.
 Deposit growth moderated to 8.2 percent yoy in February 2018 from 8.5 percent in January.
 Directorate General of Taxation, Indonesia's National Government Internal Auditor (BPKP), and Special
     Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will be jointly audit the fulfillment
     of Production Sharing Revenue and Oil and Gas Income Tax to reduce dispute between agencies and
     compliance cost.

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                        6,189      29 Mar                     0.8%       -1.0%        -6.2%         -2.6%
                  Net purchases by              0.01      29 Mar      IDR, tn           --        -3.4        -15.4         -23.2
                   foreign investors

Exchange rate: IDR/USD
                   Bank Indonesia             13,756      29 Mar                     0.1%        0.1%         0.8%          1.5%
                       Bloomberg              13,766      29 Mar                     0.0%        0.1%         0.6%          1.6%

Government bonds
              Yield: 1 year IDR bond            5.1%      29 Mar         bps          -5.5          -8           10             3
              Yield: 5-year IDR bond            6.3%      29 Mar         bps          -4.5          -2           22           -25
             Yield: 10-year IDR bond            6.9%      29 Mar         bps          -7.3          -8            9            87
       Foreign holdings of IDR bonds             848      28 Mar      IDR, tn            --          6           -1            12
   Indonesia USD bonds strip spread              184      28 Mar         bps           0.0           7           18            17
        Asia USD bonds strip spread              173      28 Mar         bps          -1.7           5           14            18
 Indonesia sovereign CDS: 5yr, mid-              104      28 Mar         bps           0.0           7           17            16
                                price

Corporate bonds
  Indonesia USD bonds strip spread                 291    28 Mar          bps            0         11            61            70

Interest rates
                     JIBOR overnight            4.2%      29 Mar          bps         14.2       15.7          20.3          25.4
                 JIBOR spread relative           -9.6     29 Mar          bps         14.2       15.7          20.3          25.4
                         to policy rate

International reserves                         128.1      28 Feb    USD, bn              --          --        -3.9          -2.1

* 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 JIBOR 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.dmo.or.id). The CDS premium on 5-year Indonesian
government USD bonds and Indonesian corporate bond spreads are sourced from JPMorgan.