Indonesia Eyes Capital Market to Support Future Financing Needs

RRI.CO.ID, Jakarta – Indonesia’s economic financing needs continue to rise, with the capital market expected to play a strategic role in meeting those needs while maintaining investor confidence.

The government estimates that financing needs will reach around IDR 7,400 trillion (approximately USD 416.38 billion) in 2026 and increase to about IDR 9,200 trillion by 2029. As a result, diversifying financing sources has become a key priority in strengthening the national financial market.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, said strengthening the capital market is essential to maintaining investor confidence in the Indonesian economy.

Economic performance remains one of the pillars supporting that confidence. Indonesia’s economy grew 5.29 percent year-on-year (yoy) in the second quarter of 2026 (Q2 2026) and 5.45 percent in the first half of 2026, exceeding global economic growth of around 3 percent.

Actual investment has also surpassed IDR 1,010.6 trillion, growing by 7.2 percent (yoy). The government is further promoting alternative financing options to expand funding sources.

“Well, these are some options that can be promoted in addition to Panda Bonds, such as Samurai Bonds. So, if we can encourage diversification, that would certainly be better,” Minister Airlangga said at the 49th Anniversary Commemoration of the Reactivation of the Indonesian Capital Market in Jakarta, as quoted on the Ministry’s official website on Monday, August 10, 2026.

Confidence in Indonesia’s fundamentals also remains strong. All of Indonesia’s sovereign ratings are in the investment-grade category: S&P at BBB/A-2, Fitch at BBB, Moody’s at Baa2, and R&I and JCR at BBB+. Indonesia’s Panda Bonds have also received an AAA rating from Lianhe Credit Rating.

The government is promoting new investment products, including gold Exchange-Traded Funds (ETFs), following the Financial Services Authority (OJK)’s designation of Electronic Gold Receipts (EGRs) as securities eligible for inclusion in gold ETF portfolios.

The development of these products is expected to strengthen interconnections among investment managers, custodian banks, bullion banks, dealers, and stock exchanges.

Ministry Spokesperson Haryo Limanseto said diversifying investment instruments can deepen the national financial market. “With an increasing variety of investment and financing instruments, including gold ETFs, we expect the capital market to become deeper, more liquid, and better able to support the economy’s growing financing needs,” he said. ***