Banks Rush to Issue Bonds, Signalling Fierce Competition for Funds

The banking sector is actively issuing bonds amidst intensifying liquidity competition. According to data from the Indonesian Central Securities Depository (KSEI), seven banks have issued bonds this year.

Among them is one of Indonesia’s major banks, PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI), which last March issued the Sustainable Social Bond I Bank BRI Phase II 2026. The bond consists of three series, targeting total funds of approximately Rp4.4 trillion.

Furthermore, a leading regional development bank (BPD), PT BPD Jawa Barat dan Banten Tbk. (BJBR), also known as BJB, issued its Sustainability Bond I Bank BJB Phase II 2026 in April, aiming for total funds of around Rp1 trillion.

In April 2026, PT Bank Mandiri Taspen (Bank Mantap) also issued its Sustainable Bond II Bank Mandiri Taspen Phase II 2026, Series A and Series B, targeting approximately Rp1.5 trillion.

Private banks are also participating in bond issuances. PT Bank Pan Indonesia Tbk. (PNBN) issued one series of bonds in February 2026 and another in June 2026. PT Bank UOB Indonesia issued one series in January and is set to issue three series this July.

This July, PT Bank Maybank Indonesia Tbk. (BNII) is preparing to issue two series of bonds, while PT Bank Victoria International Tbk. (BVIC) will issue one series.

According to Trioksa Siahaan, Head of Research at the Indonesian Banking Development Institute (LPPI), this situation is inseparable from tight market liquidity competition. However, this does not necessarily indicate a decline in the banking industry.

“This move is more of a funding strategy so that banks can obtain more stable medium- and long-term funding sources amidst continued high credit growth, rising funding costs, and increasingly intensive competition for third-party funds (DPK),” Trioksa told CNBC Indonesia on Thursday (2/7/2026).

By issuing bonds, he added, banks can maintain a healthy funding structure, reduce dependence on more expensive deposits, and maintain their ability to disburse credit without squeezing profit margins.