Pefindo Records Corporate Bond Issuance at IDR 87.35 Trillion in First Half of 2026

Pemeringkat Efek Indonesia (Pefindo) recorded corporate bond issuance reaching IDR 87.35 trillion in the first half of 2026, a decrease of 3.91 percent year-on-year (yoy) compared to the same period the previous year. Head of Pefindo’s Economic Research Division, Suhindarto, explained that although issuance declined nominally, corporations remain active in utilising the bond market as a source of funding.

“During the first half of 2026, we at Pefindo observed that issuance remained relatively vibrant, although the level was relatively lower compared to the first half of 2025,” Suhindarto stated during a press conference in Jakarta on Wednesday. Suhindarto highlighted that the value of maturing bonds was relatively lower in the first half of 2026 compared to the same period last year, yet the issuance value far exceeded these maturing obligations.

“The ratio reached 158.2 percent. This means that 58 percent of the bonds were issued at a higher value than the bonds maturing,” Suhindarto said. According to him, the slowdown in bond issuance in the first half of 2026 was also influenced by the rise in interest rates that occurred again from the end of the first quarter of 2026. He explained that the rate hike has increased funding costs through the bond market, particularly for issuers with medium credit ratings.

He continued that the cost differential between bond issuance and bank loans for issuers rated A to BBB is currently widening, making bank loans more attractive for these groups. “Meanwhile, for issuers with AAA and AA ratings, bond issuance costs remain relatively competitive. Therefore, issuance this year tends to be dominated by higher-rated issuers,” Suhindarto said.

In addition to causing issuance to become more selective, he explained that the rate hike has also altered corporate strategies in determining bond tenors. Whereas in 2025 many issuers took advantage of low interest rates to issue longer-term bonds, this trend has begun to shift this year. Pefindo recorded that the proportion of bond issuance with a one-year tenor increased throughout the first half of 2026. Conversely, the share of bonds with three-year and five-year tenors declined compared to the previous year. Meanwhile, the issuance of bonds with tenors of seven to ten years remained relatively stable, although the seven-year tenor showed a slight weakening trend.