Indonesia Debt


Indonesia | An Economic Rebound Is Underway And Sectors Have Recovered, But Downside Risks Persist

Crédito y Caución (Atradius) | In his second term, President Joko Widodo has continued to tackle economic reforms, such as infrastructure improvement to support the manufacturing sector and digital economy, reforms of the labour market and foreign investment rules. However, some key elements of his policy agenda remain contested due to vested interests. While Widodo has broad support in the House of Representatives, the wide range of political groups in…


Indonesia Debt Monetization: Not Inflationary But Plenty Of Baggage And Not Doing Much To Help Growth

Trihn D. Nguyen (Natixis) | Currently, 32% of government bonds are held by foreign investors and the price of that debt is 5.4% for the 2-yr and 7.2% for the 10-year. Even after Bank Indonesia (BI) embarked on rate cuts of 75bps in 2020 to 4.25% and outright purchases of government bonds, the government is asking the central bank to take one step further and buy 60% financing needs in 2020 at zero interest.