Key facts
- Rupiah corporate bond volatility is at a four-year high.
- This volatility threatens to dent record corporate bond issuance in Indonesia.
- Government policy shifts have negatively impacted international investor confidence in Indonesian assets.
Record corporate bond issuance in Indonesia is under threat due to the highest rupiah bond volatility seen in four years. This heightened volatility, coupled with shifts in government policy, has diminished international investor confidence in Indonesian assets. The situation poses a significant challenge for companies looking to raise capital through the bond market in Southeast Asia's largest economy.