Harry Suhartono

Asia’s dollar bond market has seen a burst of issuance as companies and governments rushed to secure cheaper funding, with credit spreads tightening to record lows on hopes tensions in the Middle East may ease.

A yearslong downturn in the sector has weighed heavily on SK Capital’s returns

In early May, President Prabowo Subianto summoned a handful of his most trusted advisers to his house in south Jakarta to discuss how to find more revenue as surging oil prices stretched Indonesia’s finances.

Economists are increasingly doubting Indonesia’s robust growth narrative under President Prabowo Subianto, with the skepticism spilling over into a rare public debate over the reliability of the country’s economic data.

Indonesia’s sovereign wealth fund Danantara is planning to sell local-currency bonds that will pay interest below market rates at a time when global investors are rapidly losing confidence in the nation’s markets.

Indonesia’s sovereign wealth fund Danantara kicked off its debut global dollar bond sale, testing investor appetite at a time when confidence in Southeast Asia’s largest economy has soured.

Indonesia’s central bank has been tightening oversight of Wall Street lenders and local financial institutions as it tries to stem the rupiah’s decline and support Southeast Asia’s largest economy, according to people familiar with the matter.

Two funds that hold Indonesian bonds are delaying redemptions to manage liquidity pressures stemming from the nation’s recent financial market turmoil.

Bank Indonesia has been stepping up monitoring of banks’ foreign-exchange dealings to ensure transactions are conducted for commercial rather than speculative purposes, sources said.

The highest volatility in rupiah corporate bonds in four years is threatening to dent record issuance by companies in Southeast Asia’s largest economy at a time when government policy swings have hurt international investor confidence in Indonesian assets.