"As for pure rupiah based bonds, they have reached profits of 19.7 percent."Jakarta (ANTARA News) - Indonesia is reported to lead East Asia`s bond markets in 2011, with recorded profits of 18.4 percent in US dollar based bonds.
"As for pure rupiah based bonds, they have reached profits of 19.7 percent," said head of the Asian Development Bank (ADB) Iwan J. Aziz at the launch of Asian Bond Monitor on Thursday.
Indonesia has a balance of corporate bonds of 16 billion U.S. dollars, up 28 percent from 2010, as of the end of December 2011, according to officials.
Meanwhile, the government bond market, valued at about 93 billion dollars, only grew by 0.3 percent per year.
According to Iwan, bond markets in the emerging East Asia will continue to grow in the next few years.
"That`s because a number of banks are preparing their larger capital requirements, and several companies are seeking expansion capital for development in the region, which continues to grow, also there is a strong demand from domestic and foreign investors," he noted.
Additionally, in 2011 the balance of bonds sold by banks and companies in the region increased by 17.1 percent to 1.9 trillion U.S. dollars.
The development of local currency bond markets in East Asia, according to the ADB, also increased seven percent to 5.7 trillion by the end of 2011.
Meanwhile, foreign holders of Indonesian bonds declined from 31.3 percent at the end of September 2011 to 30.8 percent by the end of December 2011.
Although by January 2012, credit for foreign investment increased to 32.1 percent, but in mid-March it was down to 30.4 percent.
(T.A050/INE/KR-BSR/B003)
Editor: Priyambodo RH
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