Monthly Market Summary July 2025
GDP of Indonesia grew by 5.12% Year on Year in Q2 2025, with household consumption tending to be flat while Government spending contracted for two consecutive quarters. The general inflation rate increased to 2.4% Year on Year in July with core inflation falling slightly to 2.3% Year on Year in July.
The price of Indonesian government bonds denominated in Rupiah generally moved up with the 10-year bond yield decreasing 6 bps to 6.57%. The Indonesian bond market still recorded positive returns in July 2025. On the other hand, the price of Indonesian government bonds denominated in USD closed flat with the 10-year bond yield closing at 5.06%, and the government bond index denominated in USD moved up by 0.67% MoM in July 2025.
From the stock market, during July 2025, the JCI rose significantly by 8% driven by retail stocks. In terms of corporate earnings performance, the second-quarter 2025 earnings results did not contribute to the stock market's strengthening. The weak earnings results also resulted in ROE falling below the post-COVID average, as aggregate net profit in the second quarter of 2025 fell 7% year-on-year. This resulted in MSCI Indonesia's 2025 earnings estimate being lowered by nearly 6% in July and subsequently by 0.5% MTD.
See more in the following Monthly Market Summary for July 2025.
