Indonesia Stock Exchange (IDX) Confident Indonesia Will Maintain Emerging Market Status in MSCI Review
IDX dismissed rumors that Indonesia could be downgraded to Frontier Market status by MSCI, stating that circulating reports on social media were inaccurate. Acting President Director Jeffrey Hendrik expressed strong confidence that Indonesia will retain its Emerging Market classification in MSCI's upcoming 2026 reviews, citing ongoing efforts to improve market transparency, data disclosure, and high shareholding concentration reporting. Meanwhile, economists noted that recent IHSG weakness alone is unlikely to trigger a downgrade, as MSCI's assessment primarily focuses on governance, market liquidity, and transparency standards. (Tempo)

Govt. Allows Danantara to Receive State Capital Injections Under New Regulation
The govt. issued PP No. 19/2026, strengthening Danantara's role and governance framework while allowing the investment holding to receive state capital injections (PMN) from the APBN to support national development objectives. Under the regulation, PMN may consist of state assets, state receivables, government-owned assets, and other forms of state wealth. The rule also expands Danantara's authority over dividend management, BUMN asset optimization, capital allocation, loan arrangements, and investment holding oversight, further reinforcing its position as the state's strategic investment vehicle. (Bloomberg Technoz)

DPR: APBN Support for Danantara Intended for Public Service Obligation (PSO) Related Activities
Chairman of Commission XI of the DPR, Mukhamad Misbakhun, stated that the provision allowing Danantara to receive State Capital Injections (PMN) under PP No. 19/2026 is intended to support PSO activities. He explained that non-commercial assignments related to public services, similar to those carried out by Bulog, KAI, Pelni, and PLN, require APBN funding support. Under the new regulation, Danantara may receive PMN sourced from state assets, government receivables, and other forms of state wealth when undertaking activities that support national development objectives. (Bloomberg Technoz)

Indonesia's 1Y Government Bond Yield Surpassed 10Y Yield
Indonesia's 1-year government bond (SUN) yield rose to 7.09%, the highest level since 2018, exceeding the 10-year yield of 6.69%, resulting in an inverted yield curve. Meanwhile, Indonesia's 5-year CDS stood at 88.8 bps as of 03 Jun-26, after reaching 104.48 bps during 2Q26. The recent increase in government bond yields occurred alongside weakness in the rupiah, concerns over sovereign ratings, and heightened volatility in domestic financial markets. (Bloomberg Technoz)

National Nutrition Agency (BGN) to Further Cut Free Nutritious Meals (MBG) Budget Through Efficiency Measures
New BGN Head Nanik S Deyang aims to further reduce the MBG program budget from IDR 268 tn without lowering beneficiary targets. Key initiatives include a moratorium on new MBG kitchens, reassessment of recipient eligibility, standardization of existing kitchen operations, workforce training, and alternative implementation schemes for 3T (remote) regions. Management noted that more than 27,000 MBG kitchens are already operating, with the current focus shifting toward improving quality and expanding coverage in underserved areas rather than adding capacity in urban agglomeration regions. (Kompas)

Govt. Mandates E5 Bioethanol Blending for Non-Subsidized Fuel Starting 2H26
The Ministry of Energy and Mineral Resources (ESDM) will require all fuel retailers to blend 5% bioethanol (E5) into non-subsidized gasoline starting in 2H26 across Java, in line with Ministerial Regulation No. 4/2025. The program will expand beyond the current Pertamax Green 95 pilot market, with implementation details to be set through a Ministerial Decree this month. Domestic supply is expected to be supported by three fuel-grade ethanol producers: PT Energi Agro Nusantara (30,000 KL), PT Indonesia Ethanol Industry (20,000 KL), and PT Molindo Raya Industrial (10,000 KL), as the govt. pushes wider adoption of renewable fuels. (Kompas)

Telkom Indonesia (TLKM) Increased Share Buyback Allocation to IDR 4 tn
TLKM raised its share buyback allocation to IDR 4 tn from the previously announced IDR 1 tn, reflecting management's commitment to support shareholder value amid recent market volatility. The buyback will be conducted under POJK No. 29/2023 for up to 12 months following shareholder approval at the AGM on 08 Jun-26. The program is scheduled to run from 09 Jun-26 to 08 Jun-27, unless completed earlier or terminated based on management's discretion. (IDXChannel)

Mayora Indah (MYOR) to Disburse Dividend of IDR 60/sh
MYOR approved FY25 cash dividend of IDR 60/sh (Div. yield: 3.41%) following shareholder approval at the AGM on 04 Jun-26. The dividend distribution was supported by solid FY25 performance, with revenue increasing to IDR 38.68 tn from IDR 36.07 tn in FY24 despite higher coffee and cocoa prices. Management expects profitability to improve in 2026 as key raw material prices begin to ease, while continuing to focus on product innovation, operational efficiency, and market expansion. (Bisnis.com)

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23 April 2025 - 04.41pm

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DPR: APBN Support for Danantara Intended for Public Service Obligation (PSO) Related Activities

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Fixed Income Daily Notes 04 Jun 2026

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Indonesia Sovereign Rating Rumors Denied by Finance Minister