Indonesian Corporate Bond Volatility Hits 23%, Threatening Record Issuance as Prabowo Policies Rattle Investors
Updated
Updated · Bloomberg · Jun 16
Indonesian Corporate Bond Volatility Hits 23%, Threatening Record Issuance as Prabowo Policies Rattle Investors
3 articles · Updated · Bloomberg · Jun 16
Summary
Top-rated rupiah corporate bond volatility climbed to 23% on a 30-day annualized basis this week, the highest level since mid-2022 and a potential brake on record debt issuance in Indonesia.
Prabowo Subianto's interventionist policy swings triggered a broader selloff in Indonesian assets, undermining international investor confidence just as companies seek to tap the bond market.
Monday's rally in Indonesian bonds followed an interim US-Iran agreement to reopen the Strait of Hormuz, but that rebound has not erased concerns over domestic policy risk.
The volatility spike leaves Southeast Asia's largest economy facing a tougher funding backdrop even as issuance had been on track for a record.