Indonesian Corporate Bond Market Shows Strong Growth in 2025

Record-Breaking Bond Issuance

The Indonesian corporate bond market experienced significant growth in 2025, with total issuance reaching Rp198.81 trillion from January to November, representing a 56.88% year-on-year increase compared to Rp126.73 trillion in the same period of 2024 ¹

. This surge was primarily driven by the declining interest rate environment throughout the year, making bond issuance an attractive financing option for corporations.

Sector-wise Breakdown

The multifinance sector led the bond issuance with Rp37.98 trillion, followed by the banking sector with Rp33.85 trillion. Other significant contributors included the pulp and paper industry (Rp32.16 trillion), mining (Rp24.2 trillion), and non-multifinance financing (Rp22.04 trillion) ¹

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Regulatory Developments

In a significant regulatory development, Bank Indonesia (BI) has begun accepting corporate bonds as underlying assets for repurchase agreements (repo) in its monetary operations. Initially, bonds issued by PT Sarana Multigriya Finansial (SMF) will be accepted ²

. This move is expected to deepen the corporate bond market and provide additional liquidity options for investors.

Outlook for 2026

Despite the strong performance in 2025, Pefindo projects that corporate bond issuance will decline in 2026 to between Rp154 trillion and Rp196.86 trillion, with a midpoint projection of Rp175.77 trillion ⁴

. This forecast is based on the expectation that interest rates will stabilize in 2026, with projections suggesting rates will remain in the range of 4% to 4.5% ⁴

Source 4

https://investasi.kontan.co.id/news/penerbitan-surat-utang-korporasi-diproyeksi-menurun-di-tahun-depan

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Economic Growth Projections

The World Bank has projected that Indonesia's economic growth will reach 5% in 2026 and 5.2% in 2027, driven by increasing investment and monetary easing ⁵

. However, this growth projection is slightly below the government's target of 5.4% for 2026 as outlined in the state budget ⁵

Source 5

https://nasional.kontan.co.id/news/bank-dunia-proyeksikan-pertumbuhan-ekonomi-indonesia-5-di-2026-dan-52-pada-2027

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Credit Growth Outlook

The banking sector is expected to see improved credit growth in 2026 following a slower growth rate of 7.36% year-on-year as of October 2025 ³

. The initial target for credit growth in 2025 was between 8-11%, which now appears challenging to achieve ³

Source 3

https://keuangan.kontan.co.id/news/target-kredit-2025-kian-menjauh-ekonom-bca-proyeksikan-2026-lebih-cerah

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