REPUBLIKA.CO.ID, JAKARTA – Indonesia is now leading the growth of bond market in Southeast Asia while the increasing of the issue of corporate bond until the end of 2011 reaches 28 percent with the value of 16 billion USD. The increasing of bond market is important to boost the development with long term financing. 

The Vice President of Knowledge Management and Sustainable Development of Asian Development Bank (ADB), Bindu Lohani, said the growing of bond market with local currency reached seven percent or 5.7 trillion USD by the end of 2011. “The number will increase given that European and US economy have not recovered. Thus, the financing mostly enters developing countries,” he said on Thursday.

On 2011, Indonesian bond shows good performance with the 18.4 percent yield in USD-denominated bond and 19.7 percent for IDR-denominated bond.

The Head of ADB’s office of Regional Integration, Iwan Aziz, said the the government’s bond growing slowly due to lack of government’s intervention over the market. 

The corporate bond in Indonesia is recently issued by financial companies and banks. The issue is boosted by the significant increasing of Indonesian economic growth and the investment grade status from Fitch Rating’s and Moody’s.

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