Indonesian Bond Market Strengthens: ICBI Rises, SBN Yield Drops Significantly
Executive Summary
Key insights and market outlook
The Indonesian bond market showed positive performance in December 2025, with the Indonesia Composite Bond Index (ICBI) rising 1.08% month-to-month. This strengthening was accompanied by a significant decrease in government bond yields, with SBN yields dropping 4.84 basis points monthly and 80.91 basis points yearly. OJK's Head of Capital Market Supervision, Inarno Djajadi, highlighted these developments, indicating a positive outlook for the bond market.
Deep Dive Analysis
Indonesian Bond Market Shows Strength in December 2025
Positive Performance Across Key Indicators
The Indonesian bond market demonstrated robust performance in December 2025, marked by a notable increase in the Indonesia Composite Bond Index (ICBI) and a significant decline in government bond yields. The ICBI rose by 1.08% on a month-to-month basis, signaling a positive trend in the bond market.
Significant Decline in Government Bond Yields
The yield on State Securities (SBN) experienced a substantial decrease, dropping by 4.84 basis points monthly and 80.91 basis points yearly. According to Inarno Djajadi, Head of Capital Market Supervision at the Financial Services Authority (OJK), this decline in SBN yields reflects the overall positive sentiment in the bond market.
Market Implications
The strengthening of the ICBI and the decline in SBN yields are indicative of a favorable environment for bond investments in Indonesia. This trend suggests increased investor confidence and a potential for continued growth in the bond market. The OJK's observation and supervision of these developments will be crucial in maintaining market stability and supporting further growth.
Source References
Story Info
Topics Covered
Key Events
ICBI Monthly Increase
SBN Yield Decrease