Widodo Spending to Ignite Corporate Debt Market: Southeast Asia
This article is for subscribers only.
President Joko Widodo’s push to build roads, ports and power plants is set to expand Indonesia’s corporate bond market, which lags behind Southeast Asian peers.
State companies will fund infrastructure development via debt sales, as well as rights offerings and the government budget, Rini Soemarno, who heads the Ministry of State Owned Enterprises, said in a Jan. 16 interview in Jakarta. PT Indo Premier Securities, the top corporate underwriter in 2014, and PT Mandiri Sekuritas predict company debt issuance will rise as much as 17 percent to 55 trillion ($4.4 billion) rupiah in 2015.