Government Encourages Deepening and Diversification of Economic Financing

The government continues to encourage the strengthening of the capital market as an important part of maintaining investor confidence while deepening the national financial sector. The 49th anniversary of the reactivation of the Indonesian capital market serves as a momentum to strengthen the role of the capital market in supporting economic financing and enhancing the competitiveness of the national financial sector.

“This anniversary is a momentum to maintain the confidence of investors in the economy and in international and national financial markets, because the capital market is always a proxy for the economy that investors look at, especially at very strategic moments,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the commemoration of the 49th anniversary of the reactivation of the Indonesian capital market in Jakarta on Monday (10/08).

Economic performance is one of the foundations for maintaining investor confidence in the national capital market. Indonesia’s economic growth in the second quarter of 2026 was recorded at 5.29% year-on-year, while in the first half of 2026 it grew by 5.45%. This achievement is above the global average economic growth of around 3%. Investment realisation also reached more than Rp1,010.6 trillion with growth of 7.2% year-on-year.

In line with the increasing need for economic financing, the government views the diversification of financing sources as important. Economic financing in 2026 is estimated to reach around Rp7,400 trillion and increase to around Rp9,200 trillion in 2029. In this context, the government is encouraging the diversification of financing sources, including through the development of instruments such as Panda Bonds and Samurai Bonds.

“So this is also our momentum to diversify away from loans. Perhaps some of the things that can be encouraged besides Panda Bonds are, of course, Samurai Bonds. So if we can push for diversification, it will certainly be better,” said Coordinating Minister Airlangga.

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

Besides diversifying financing sources, the government is also encouraging the development of new investment products to deepen Indonesia’s financial market. One of these is through a gold Exchange Traded Fund (ETF), which is expected to expand investment choices while increasing liquidity. The government appreciates the step taken by the Financial Services Authority (OJK) to designate the Electronic Gold Receipt (EGR) as a security that can be recorded in a gold ETF portfolio. The development of this product is also expected to strengthen the linkages between investment managers, custodian banks, bullion banks, dealers, and the stock exchange.

Strengthening the capital market is also continuously supported through various reforms to improve the credibility, innovation, and competitiveness of the financial sector. The government hopes that the development of capital market products and ecosystems, including gold ETFs and the demutualisation agenda, can further deepen the financial sector and strengthen its contribution to national economic financing.

“Strengthening the capital market is an important part of strengthening Indonesia’s economic financing structure. With the increasingly diverse range of investment and financing instruments, including through gold ETFs, we hope that the capital market can become deeper, more liquid, and able to support the ever-increasing need for economic financing,” said Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto.

Also present on the occasion were Deputy Minister of Finance Juda Agung, Chair of the OJK Board of Commissioners Friderica Widyasari Dewi, President Director of PT Kustodian Sentral Efek Indonesia Samsul Hidayat, OJK Chief Executive for Capital Market, Financial Derivatives, and Carbon Exchange Supervision Hasan Fawzi, Danantara CIO Pandu Patria Sjahrir, and Deputy for Coordination of SOE Management and Business Development at the Coordinating Ministry for Economic Affairs Ferry Irawan.