Issuance of corporate bonds in 2017 predicted would carve out a new record and the demand is also expected to rise, especially to accommodate the tax amnesty funds and non-bank financial industry demand. President Director of PT Securities Rating Indonesia (PEFINDO) Salyadi Saputra predict, corporate bond issuance has the potential to record up to Rp119.6 trillion. Understandably, the corporate bonds that will expire next year to reach Rp 79 trillion. Typically, the corporation will issue new bonds to cover maturing debt refinancing alias. PEFINDO mandate itself has collected Rp 21.3 trillion bond rating of 28 companies that will issue bonds in 2017. The majority of the mandate came from the financial industry, the company’s finance and banking. Followed by the company’s property sector, energy, manufacturing, construction and chemicals. The height of the bond issuance will be supported by improved macroeconomic fundamentals Indonesia. Next year, the economy is predicted to grow, inflation is under control, at an exchange rate more stable. Moreover, interest rates are still relatively low in the country. Refer to Indonesian Central Securities Depository, the number of corporate bond issuance throughout 2016 reached Rp 112.43 trillion. The rate was the highest level during this time.
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