Transaction of Government Bond in Indonesia

From 2018, the trading of government bond in Indonesia has been rapidly increased and reached at IDR 27,660 Billion in 2019. There are three reasons on the increase. First of all, Indonesia has fully rated as an investment grade country by ‘Fitch’, ‘S&P’, and ‘Moody’s’ from 2017. Second, Jokowi has shown good performance in his works as a president of Indonesia and made investors satisfied on his performance. Last, President Jokowi got officially re-elected on April in 2019 and it attracted more foreign investors.


In addition, foreign investors needed to find place for investment relatively stable in global economy slowdown affected by US-China trade war. From the view of our research center, we think that more foreign investors can be attracted by Indonesia with 3 reasons as follows: 1) Policy Uncertainty Eliminated, 2) High-Yield with Investment Grade, and 3) Market Potential with 2nd Jokowi-Effect.