Central to the exchange’s ambition of doubling market capitalisation by 2015 will be the new supply of shares from initial public offerings (IPO) and secondary rights issues. Recovering from a trough at the start of 2012, the frequency of Indonesian issuances has led the region alongside the Philippines, with a steady stream of smaller issues...
Although private equity (PE) has faced the challenges of lower leverage and poor image since 2008, Indonesia is attracting a growing number of foreign and homegrown dealmakers. “PE is drawn to Indonesia given the strong growth prospects,” Destry Damayanti, chief economist at Bank Mandiri, told OBG. “Given Indonesia’s still shallow financial sector,...
The top 15 lenders continue to be considered systemically important in Indonesia, controlling 74% of banking assets as of September 2012. The majority of the market is still controlled by the top 10, which held 65.4% of deposits, 64.1% of loans and 64.8% of bank assets in April 2012 according to Pefindo, a credit ratings agency. These shares rise to...
The Asian financial crisis triggered a downgrade in the country’s sovereign rating from an investment-grade level of BBB- by both Fitch and Standard & Poor’s in early 1997, to B and CCC, respectively, in early 2001. This was followed by a capital flight, depreciation of the rupiah by over 70% and turbulent shifts in the post-Suharto regime’s...
In the face of rapidly expanding consumer lending in recent years, Bank Indonesia (BI) raised down payment requirements for two- and four-wheel vehicles as well as mortgages from July of 2012. With credit ratings agencies forecasting a medium-term rise in non-performing loans (NPLs) from their record low in 2012, the regulator has also sought to act...
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