Monthly Market Summary August 2025

Indonesian president launched the 2026 Draft State Budget (RAPBN) and targeted a reduction in the budget deficit from 2.78% of GDP in 2025 to 2.48% of GDP in 2026. State revenues are targeted to increase sharply by 9.8% from 0.5% in 2025, and projected GDP growth is targeted to increase from 5.2% to 5.4%. In terms of valuation for Bonds, the valuation of Indonesian bonds denominated in IDR remains attractive with a real yield of 4.05% above the 3-year historical average of 3.73%. In August 2025, the JCI jumped 4.63% due to significant inflows from foreign investors amounting to 675 million USD. Sentiment towards emerging markets improved due to the increasing possibility of a Fed interest rate cut. 

See more in the following Monthly Market Summary for August 2025.