Indonesia plans to sell U.S. dollar-denominated bonds, marking the first such offer by an Asian country this year (12/01). The move is part of a record start to global debt issuance by borrowers in 2026.

The Southeast Asian economic powerhouse is beginning to market fixed-rate bonds with maturities slightly over five, 10, and 30 years, according to sources who requested anonymity due to the confidential nature of the information.

The bond sale comes as President Prabowo Subianto’s administration seeks to finance a budget deficit that could exceed the legal limit of 3 percent of GDP in 2026.

Indonesia has set its deficit target at 2.68 percent of GDP, with total net bond issuance, including local and foreign currency debt, planned at 799.5 trillion rupiah for the year.

The 2025 deficit reached its highest level in at least two decades. Citigroup has raised its 2026 deficit forecast to 3.5 percent of GDP from 2.7 percent, citing faster-than-expected spending on free meal programs and larger transfers to regional governments.

The bonds being offered will have a fixed interest rate and long-term maturities, providing investors with options of slightly over five, 10, and 30 years.

PHOTO: FREEPIK

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