Despite the recent rating upgrade from Standard & Poor’s, Indonesia’s banking sector will not immediately issue bonds to enjoy (expected) higher demand and lower yields. Based on data from the Financial Services Authority (OJK), per March 2017, the value of bonds issued by Indonesian banks fell from Rp93.22 trillion in December 2016 to Rp90.25 trillion per March 2017. Earlier this month S&P assigned the investment grade status to Indonesia’s sovereign rating (BBB-/stable outlook). This decision led to a stronger rupiah rate, while the rupiah and U.S. dollar-denominated ten-year government bond yields fell from 6.92% to 3.73%.To subscribe please click here