The Jakarta Post
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsInvestors cold on RI bonds since MSCI warning
Yields on medium- and long-term government bonds have increased significantly in just two weeks as demand nosedived after MSCI announced a possible reclassification of Indonesian stocks. The 10-year yield now sits at a four-year high, while the rupiah is trading near its all-time low.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
An electronic display board inside the main hall of the Indonesia Stock Exchange (IDX) in South Jakarta shows an overall downward movement across most stocks during the lunch break on Jan. 29, 2026, when the IDX Composite index fell 6.3 percent after global index provider MSCI raised concerns about Indonesia's stock market. (TJP/Deni Ghifari)
Y
ields on medium- and long-term government bonds have increased significantly in just two weeks as demand nosedived after MSCI announced a possible reclassification of Indonesian stocks. The 10-year yield now sits at a four-year high.
Incoming bids halved from Rp 64.85 trillion (US$3.56 billion) in the previous auction held on Oct. 13 to just Rp 31.09 trillion in the last auction held on Tuesday, according to announcements from the Finance Ministry.
The yield on the 10-year bond, market participants’ primary benchmark for longer-term economic expectations, spiked from 7.24 percent in the previous auction to 7.54 percent just 14 days later.
The Finance Ministry’s financing and risk management director general, Suminto, told The Jakarta Post on Oct. 14 that the auction earlier this month had “reflected resilience of the bond market and investor confidence in the government’s financing management”.
He did not immediately reply to the Post’s request for comment on the latest auction.
The government targeted to raise Rp 30 trillion in both auctions but ended up taking in Rp 35 trillion two weeks ago and just Rp 20.65 trillion on Tuesday.
The pattern remained the same; most incoming bids were made for debt instruments with tenors of five years or less, with some set to mature in months, while only about a third were for bonds with 10-year maturity or more.
